A new report by CBRE has it that Toronto is predicted to experience huge developments to take place in its commercial sectors, this came in light of the attention global investors are showing as they are lured by the strong activity in the market. This year could see the third more active year for commercial real estate as foreign investment pushes $31.9 billion of business dealings. Paul Morassutti, Executive Managing Director for CBRE Limited said; “Toronto starts 2017 on the A-list of commercial real estate markets. Real estate players from cities across the globe are casting envious glances at its performance. The numbers are truly compelling.”
He precisely outline the reason why the commercial real estate sector in Toronto appears to be attractive to investors, with several main elements highlighted: “the lowest downtown office vacancy rate of any major North American city with good rental growth projected for 2017, the second lowest industrial availability rate, the second lowest multifamily vacancy rate and its hotels recorded record occupancy levels in 2016.”
The activity in the city is predicted to outdo other cities in Canada at a far exceeded pace this year. Other forecasts rendered in the CBRE report is the increased development of land cost, a new record to be hit by Commercial land transaction for this year at $5.2 billion, with urban centers and locations close to transit routes to face scarcity of land development.