GTA Investment Volume Reaches $10.2 Billion as Office and Industrial Lead

GTA commercial investment strengthened in 2026, with first half volume reaching $10.2 billion. Industrial, multifamily and premium office assets attracted the strongest capital, while recent retail and housing transactions broadened the recovery.

GTA commercial investment volume reached $10.2 billion in the first half of 2026, up nearly 35 per cent year over year. Industrial remained the largest sector at $3.6 billion, while multifamily investment surged 244 per cent to $2.4 billion as investors responded to persistent rental housing supply constraints. Toronto represented $669.2 million of Canadian investment volume in the second quarter alone, equal to 44 per cent of the national total, with multifamily and industrial activity providing the main support. The figures indicate that capital is returning selectively rather than broadly, with income durability and liquidity driving acquisition decisions.

Industrial pricing continues to benefit from constrained land supply and demand for functional logistics space. A September transaction involving two GTA industrial properties sold by Dream Industrial REIT and Canada Pension Plan Investment Board to Zzen Group totalled $115 million, providing a current benchmark for institutional interest in high quality assets. Office investment has also improved, with GTA office transactions approaching $1.2 billion in the second quarter, up 125 per cent from the prior year. Class A assets accounted for 113 transactions and approximately 3.4 million square feet in the first half, compared with 15 Class B transactions covering 271,500 square feet, underscoring the widening valuation gap between prime and secondary buildings.

Operating fundamentals are improving in the best office locations, although the recovery remains uneven. Colliers reported GTA office vacancy of 10.4 per cent in the third quarter, supported by 860,000 square feet of positive absorption led by Class A properties. Downtown Class A availability was reported at 15.7 per cent, while Financial District Class A availability was 9.6 per cent, creating a stronger basis for long term underwriting than the broader office average. Retail investment also produced a significant signal when Primaris REIT agreed to acquire Upper Canada Mall in Newmarket for $411 million, while High Art committed $22.3 million to acquire 43 unsold Toronto condominium units for rental conversion, backed by a broader $1.3 billion housing initiative. These transactions show that investors are prioritizing scale, durable cash flow and conversion or repositioning potential, while Ontario’s review of more than 350 economic development permits and planned reforms to reduce or transform 35 per cent to 50 per cent of them could gradually improve development feasibility.