Mar 11, 2024
Following a substantial decrease in total dollar volume of sales transactions in the Greater Toronto Area (GTA) from 2022 to 2023, there are indications of resilience and adaptability within the market. While the GTA industrial market has felt the effects of high interest rates and economic uncertainty, the backlog of high demand and limited space over the past few years has sheltered the market from significant downturn. The decline in sales activity, attributed partly to the Bank of Canada's interest rate hikes, signifies a return to pre-pandemic levels after the record highs of 2021 and 2022. The shift in preferences reflects changing consumer behaviour and economic conditions, suggesting that investors are reevaluating their portfolios in response to evolving market dynamics. Despite economic uncertainty and historical supply constraints within the Greater Toronto Are (GTA), 2023 witnessed increased activity from the private sector and buyers exploring non-traditional lenders for financing, as a result of changing market conditions and tighter lending standards.
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