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The predictable fourth-quarter surge in investment sales was a welcomed respite in a year where the unpredictability of the pandemic stymied investor appetite for select properties – bringing several years of record-high investment sales results to a halt. However, the foundation for a return to past and even better performances – low borrowing costs and plenty of capital – remains intact and the wide distribution of vaccines should help sustain investor demand in 2021.

COVID-19 took its toll on the Greater Toronto Area office leasing market in 2020, abruptly ending strong demand that had lasted most of a decade in one of North America’s healthiest commercial real estate markets. The pace of vaccinations will be a bellwether for a welcomed rebound likely to take hold in the latter part of 2021.

Leasing activity in the GTA industrial market gained momentum in the third quarter of 2020 with notable transactions inked by the e-commerce and food and beverage sectors. Meanwhile, a sub-2% availability rate pushed rental rates higher yet again. Industrial was also the top investment asset class of the third quarter and year-to-date in 2020.

Uncertainty around the pandemic’s long-term impacts on commercial property in the GTA continues to weigh heavily on investors. While each sector has its challenges, industrial and (to a lesser degree) multi-residential assets have been the favourites. Meanwhile, the bid-ask gap has widened for certain asset types and locales, resulting in a material change in capitalization rates.

The impact of COVID-19 and the Great Lockdown on Canada’s largest office market became more obvious in the third quarter of 2020. Despite the easing of some government restrictions and a commendable effort by landlords and employers to provide safe and healthy work environments, the return to office has been slower than initially thought.

Plans for a new 400-Series Highway spanning Halton, Peel and York Regions aim to reduce travel times and support economic growth and job creation.