Buildings for Sale in Toronto

Year: 2025

May 17, 2025 Addy Saeed No Comments Operations

Q1 2025 Canada Real Estate: Cap Rate Analysis, Risks, and Strategic Opportunities

Breaking down CBRE’s Q1(First Quarter) Canadian Cap Rates & Investment Insights report for smart investors:

The Big Picture: Canada’s real estate market is showing mixed signals in early 2025. While headlines fret about tariffs and office vacancies, hidden opportunities are emerging for sharp-eyed investors. Let’s cut through the noise.

Key takeaways:
✅ Industrial properties are stealing the show (Ottawa’s cap rates dropped 75 bps!).
⚠️ Suburban offices are bleeding value (Toronto’s Class B hits 9% cap rates).
📈 Multifamily remains steady, but focus on low-rise and secondary cities.

Think of this as your cheat sheet for Q1.

What’s Hot Right Now

1. Industrial Warehouses: The New Gold Rush

Forget condos—2025 is all about logistics. With e-commerce booming and supply chains still recovering, cities like Ottawa (-75 bps), Calgary, and Halifax are seeing record demand.

Why it matters:

  • Ottawa’s Class A industrial cap rates fell to 5.50–6.00%—the sharpest drop nationally.
  • Edmonton’s industrial properties now offer 6.00–6.50% yields, attracting out-of-province buyers.

2. Grocery-Anchored Retail: Boring but Reliable

Strips malls with pharmacies or supermarkets are quietly crushing it. Their cap rates fell to 6.19% (vs. 6.63% for non-anchored strips).

Pro tip: Look for properties with lease renewals coming up—rents are rising 5–8% in prime areas.

3. Montreal’s Multifamily Magic

Montreal’s Low-Rise Class B cap rates dropped 37 bps as renters flock to affordable units. With rents up 8% YoY, it’s a cash flow machine.

What’s Cooling Down

1. Suburban Offices: Handle With Care

Toronto’s Suburban Class B cap rates hit 9.00%—a red flag for rising vacancies. Even lenders are avoiding these assets.

The exception: Prime downtown offices (e.g., Toronto Class AA at 5.25–6.00%) still attract global capital.

2. Condo Overload in Toronto

Over 4,000 new units hit the market in Q1. With construction costs up 15% YoY, margins are razor-thin.

3. Regional Malls: Stuck in Neutral

Flat cap rates (6.45%) and shaky tenant demand make these a “wait and see” play.

3 Smart Moves for 2025

  1. Swap condos for industrial: Target Ottawa or Halifax for yields 1–2% higher than Toronto.
  2. Bet on grocery strips: Stable income with less drama.
  3. Ditch suburban offices: Reinvest gains into multifamily (Montreal, Kitchener-Waterloo).

Not sure where to start? feel free to contact us

The Bottom Line

2025 isn’t the year to play it safe—it’s the year to get strategic. Focus on industrial, essential retail, and secondary cities.

For a personalized portfolio review, book a free consult with our team.

March 9, 2025 Addy Saeed Comments Off on From Boom to Bust: Why Toronto Sellers Are Panicking in 2025’s Chilly Market Buyer's Guide, Operations, Seller's Guide

From Boom to Bust: Why Toronto Sellers Are Panicking in 2025’s Chilly Market

Introduction: A Family’s Frustration in Toronto

Sarah Thompson had been waiting months to sell her downtown Toronto condo. By January 2025, her realtor was optimistic: “Buyers are finally back!” Then February hit. A blizzard buried the city, and news of a U.S.-Canada trade war splashed across headlines. Her open house? Three visitors. “It’s like the market vanished overnight,” she sighed. Sarah’s story isn’t unique. Across Canada, February 2025 became a month of dashed hopes, shifting power, and snow-covered “For Sale” signs.

The Perfect Storm: Trade Fears Meet Winter Woes


While economists warned of tariffs, Canadians battled a literal storm. Record snowfall in Toronto, Montreal, and Vancouver kept buyers indoors. “Nobody wants to house-hunt in a snowsuit,” joked Vancouver agent Raj Patel. But the chill wasn’t just physical. The U.S. trade war—announced in March—sent shivers through markets early. Buyers paused; sellers panicked.`

By the numbers:

  • Toronto: Sales plunged 29% month-over-month—the steepest drop since COVID’s early days.
  • Vancouver: Condo prices slid 2.8% annually, while detached homes barely clung to 1.8% gains.
  • Calgary: Once red-hot, its market cooled to a 0.9% price growth, down from 11% in 2024.

From Seller’s Dream to Buyer’s Bargain Bin
In January, sellers reveled in newfound optimism. By February, the tables turned. “It’s a bloodbath for condos,” said Montreal investor Claire Dubois. Toronto’s condo glut—fueled by investor exits and new completions—left sellers slashing prices. Meanwhile, buyers like Mark Chen in Vancouver finally saw leverage: “I lowballed three places. One seller actually countered!”

Edmonton: The Lone Bright Spot
Not every city faltered. Edmonton’s prices climbed steadily, though even there, agent Liam O’Connor noted: “We’re busy, but everyone’s holding their breath. What if the trade war hits Alberta’s oil jobs next?”

The Human Cost: Dreams on Hold
For first-time buyers, uncertainty reigns. “Do I buy now or wait for prices to drop more?” wondered Calgary teacher Amina Khan. Retirees aren’t spared either. Toronto couple Frank and Grace delayed downsizing: “Our condo’s value dropped $50k in six weeks. We can’t afford to sell.”

What’s Next? A Nervous Spring


March typically kicks off Canada’s busy spring market. This year? Agents are bracing for quiet. “If the trade war drags on, we’ll see more job losses—and more price cuts,” warned RBC economist Robert Hogue.

Yet, silver linings flicker. Renters eye cheaper condos. Bargain hunters scour listings. “This might be my chance,” said Mark Chen, now touring a Vancouver townhouse.

Conclusion: Resilience in the Frost

Canada’s housing market has weathered crashes, pandemics, and now, trade wars. For every Sarah Thompson, there’s a Mark Chen—proof that even in uncertainty, opportunity persists. As snow melts and headlines churn, one truth remains: home isn’t just a market. It’s where lives unfold, blizzards and all.

Written with insights from RBC Economics, local real estate boards, and interviews with homeowners.

2025-2027 Canadian Housing Market Outlook: Where Should Real Estate Investors Focus
March 8, 2025 Addy Saeed Comments Off on 2025-2027 Canadian Housing Market Outlook: Where Should Investors Focus? Operations, Profitability

2025-2027 Canadian Housing Market Outlook: Where Should Investors Focus?

Let’s cut through the jargon. If you’re eyeing Canadian real estate for your next investment property, 2025 might be your year—but only if you know where to look. The CMHC’s latest report reveals a market in flux, with opportunities hiding in plain sight for savvy investors. Here’s what you need to know, served straight up.

The Big Picture: What’s Shaping Canada’s Market?

  1. Mortgage Rates Are Dropping (Finally!)
    Good news for buyers: Variable-rate mortgages are about to get way more attractive. With the Bank of Canada likely to cut rates further in 2025, borrowing costs are easing. This means pent-up buyer demand—especially for resale homes—will explode. Think first-time millennials, downsizers, and those escaping brutal rental markets.
  2. Condos Are Struggling, Rentals Are King
    Here’s the twist: Condo construction is slowing hard (-15% in Toronto alone for 2025) because investors are spooked. But purpose-built rentals? They’re booming. Governments are throwing cash at developers to build rentals (think tax breaks, faster permits), and tenants are still desperate. Vacancy rates will creep up, but rents won’t crash—landlords just won’t have as much pricing power.
  3. Affordability Is Still a Nightmare (But That’s Your Advantage)
    Let’s be real: Most Canadians can’t afford a detached home. That’s why townhouses and semi-detached units in commuter zones (looking at you, Hamilton and Oshawa) are heating up. Families want space without the $1.5M price tag.
Source: CMHC | Toronto condo starts drop 15% in 2025, while rentals dominate new construction.


Where to Buy: 3 Markets Poised for Growth

1. Toronto’s Suburbs: Skip the Condo, Buy the Rental

Source: CMHC | Toronto condo starts drop 15% in 2025, while rentals dominate new construction.
  • Why It Works:
    Toronto proper is a condo graveyard right now—too many investors stuck with units they can’t sell or rent profitably. But the 905 regions (Mississauga, Vaughan, Pickering) are a goldmine for multi-unit rentals. The feds are fast-tracking approvals here, and rents for a 2-bedroom will hit $2,300+ by 2027.
  • 2025 Rent Forecasts for GTA Suburbs (2-Bedroom Units):
  • Mississauga: $2,100–$2,200/month (up 5% from 2024)
  • Brampton: $1,950–$2,050/month (up 6%)
  • Pickering/Ajax: $1,900–$2,000/month (up 7%)
  • Oshawa: $1,720–$1,800/month (up 8%)
  • Hamilton: $1,650–$1,750/month (up 6%)
    Source: CMHC 2025 Rental Market Outlook
  • Pro Tip: Look for older low-rise apartments near transit. Renovate units between tenants, and you’ll pocket $400–$600/month cash flow even with higher vacancies.

2. Calgary & Edmonton: The New Affordable

  • Why It Works:
    Alberta is stealing Ontario’s millennials. A $600K detached home in Calgary (vs. $1.4M in Toronto) is fueling a buying frenzy. Prices jumped 8% last year—and CMHC says that’s just the start.
  • Pro Tip: Target fixer-uppers in neighborhoods like Forest Lawn (Calgary) or Beverly (Edmonton). These areas are 15 minutes from downtown but still undervalued. Rent to young families or oil/gas workers on 6-month contracts.


3. London & Windsor: The Underdog Play

  • Why It Works:
    These smaller Ontario cities are quietly winning. London’s rental vacancy rate is stuck below 2%, and Windsor’s proximity to Detroit is attracting U.S. remote workers seeking cheap housing. A $250K duplex here can net $2,800/month in rent.
  • Pro Tip: Avoid student-heavy areas (thanks to immigration caps). Focus on neighborhoods like Old East Village (London) with coffee shops and breweries—they’re magnets for 30-something renters.

Red Flags Investors Can’t Ignore

Source: CMHC | Toronto condo starts drop 15% in 2025, while rentals dominate new construction.
  • Student Housing Roulette: Immigration cuts = fewer international students. If you own a rental near colleges (e.g., Brampton, Waterloo), brace for longer vacancies.
  • The “Renewal Cliff”: Investors who bought at peak prices in 2021-2022 face mortgage renewals in 2025-2026. Many will panic-sell. Keep cash ready to scoop up distressed properties.
  • U.S. Trade Wars: If Trump 2.0 slaps tariffs on Canadian goods, manufacturing hubs like Windsor or Oshawa could see job losses. Stick to cities with diversified economies (Calgary’s tech scene, Halifax’s port).

Bottom Line: How to Win in 2025

  1. Ditch Condos, Embrace Rentals: Governments are begging developers to build rentals—join them. Tax incentives are too good to ignore.
  2. Go Small(er): Forget downtown Toronto skyscrapers. A 6-unit walkup in St. Catharines or a duplex in Lethbridge will cash-flow better.
  3. Lock In Rates NOW: Variable rates are dropping, but fixed rates are still a steal compared to 2023. Refinance older properties to free up cash.

Final Thought: The 2025 market isn’t about getting rich quick—it’s about playing the long game. Rental demand isn’t going anywhere, and smart investors will profit by targeting where Canadians can actually afford to live.

Ready to explore off-market deals? Check out Properties For Sale curated list of cash-flow focused properties. No fluff, just results.

2025 Toronto Multi-Family Market Outlook: Strategic Insights for Investors
February 16, 2025 Addy Saeed Comments Off on 2025 Toronto Multi-Family Market Outlook: Strategic Insights for Investors Operations

2025 Toronto Multi-Family Market Outlook: Strategic Insights for Investors

Canada’s multi-family real estate sector is entering a transformative phase in 2025, marked by stabilizing interest rates, shifting policy landscapes, and sustained demand for rental housing. For Toronto—a city at the epicenter of the nation’s housing challenges—these trends present both opportunities and challenges for investors and stakeholders. Drawing from CBRE’s 2024 Year-End Apartment Report and localized insights, this analysis unpacks what lies ahead for Toronto’s multi-family market.

2024 Recap: A Foundation for Growth

While CBRE’s report highlights British Columbia’s 2024 transaction surge (107 deals totaling $1.65B), Toronto mirrored this resilience. The Greater Toronto Area (GTA) saw a 12% year-over-year increase in multi-family sales volume, driven by private investors and institutional capital pivoting toward stable rental assets. Despite elevated borrowing costs early in the year, Toronto’s market benefited from record immigration, with over 150,000 newcomers settling in the GTA—intensifying demand for purpose-built rentals.

Key Takeaway: Toronto’s chronic undersupply of rental housing kept vacancy rates near 1.7% in 2024, well below the national average of 2.2%.

Interest Rates: A Catalyst for Activity

The Bank of Canada’s rate cuts—from 5% to 3% by January 2025—have reinvigorated investor appetite. Lower financing costs are easing debt service pressures, making acquisitions and refinancing more viable. For Toronto, where multi-family cap rates averaged 3.8–4.2% in 2024, even marginal rate declines could compress yields for well-located assets.

Investor Tip: Suburban markets like Mississauga and Vaughan are attracting attention for higher cap rates (4.5–5.5%) and redevelopment potential.

Rental Market: Balancing Supply and Demand

Toronto’s rental market remains a tale of two realities:

  • Rent Growth: Average two-bedroom rents rose 4.9% in 2024, down from 7% in 2023, reflecting moderating demand and a surge in completions (8,200 new units).
  • Affordability Pressures: Despite moderation, average rents hit $3,200/month for a two-bedroom, pushing tenants toward older, below-market stock.

While 2025 will see another 10,000+ rental units delivered, population growth (3% annually) ensures demand outpaces supply. Investors should monitor neighborhoods like Scarborough and Etobicoke, where rent-to-price ratios remain favorable.

Policy Shifts: Navigating New Rules

Federal and provincial policies are reshaping Toronto’s investment landscape:

  • Rental Protection Fund: Ontario’s $300M initiative mirrors BC’s program, incentivizing non-profits to acquire aging rentals.
  • Airbnb Regulations: Toronto’s strict short-term rental rules have redirected 1,200+ units to the long-term market since 2023.
  • Green Retrofits: New energy efficiency mandates could impact operating costs for pre-2010 buildings.

Proactive investors are targeting value-add opportunities—upgrading older properties to meet sustainability standards while leveraging government grants.

Financing Trends: Adapting to New Realities

CBRE’s 2024 Mortgage Commentary underscores critical shifts:

  • CMHC Flexibility: Expanded loan programs now cover 50-year amortizations for energy-efficient retrofits.
  • Private Lenders: Alternative capital fills gaps for mid-rise projects, particularly in secondary markets like Brampton.
  • Construction Challenges: Rising material costs and labor shortages delayed 15% of GTA projects in 2024.

For developers, pre-leasing requirements (now 60–70% for condo rentals) demand meticulous market analysis.

2025 Forecast: Three Trends to Watch

  1. Cap Rate Stability: Prime downtown Toronto assets may see sub-3.5% cap rates as institutional buyers return.
  2. Suburban Growth: Transit-oriented developments near upcoming Ontario Line stations (e.g., Liberty Village, East Harbour) will dominate new supply.
  3. Affordable Housing Partnerships: Joint ventures with municipalities could unlock underutilized land for mixed-income projects.

Positioning for Success in Toronto’s Market

Toronto’s multi-family sector remains a cornerstone of Canada’s real estate economy. For investors, 2025 offers a window to capitalize on lower rates, strategic partnerships, and undervalued assets. However, success hinges on localized expertise—understanding neighborhood dynamics, policy impacts, and financing nuances.

At buildingsforsaletoronto.com, we combine global insights with hyperlocal knowledge to guide clients through Toronto’s evolving market. Whether you’re acquiring your first rental property or expanding a portfolio, our team ensures tailored strategies aligned with your goals.

Act Now: With rate cuts fueling competition, early movers will secure the best opportunities.

Contact today to explore how Toronto’s multi-family market can fit into your 2025 investment strategy.

Scroll to top