Avison Young, a commercial real estate services firm in Toronto, is reporting a 14 per cent decline in commercial real estate investment sales, citing low inventory for the downturn.

In comparing quarter-over-quarter sales, Avison Young real estate investment sales in the greater Toronto area have dropped to $2.4 billion in the company’s first quarter, according to a company announcement. Avison touted a record year of nearly $12 billion in sales in for the area last year.

 “The first-quarter performance is not indicative of a market starved of capital or the inability to raise capital, but the ongoing lack of available product to buy,” Bill Argeropoulos, Avison Young’s principal and practice leader for Research Canada, said in the announcement.

“The second quarter is already off to a great start with more than $1.5 million dollars’ worth of commercial real estate deals, including four $100-million-plus transactions, inked in the month of April alone,” Argeropoulos said.

Avison Young principal Nick Yanovski said the number of real estate transactions remains high.

“While dollar volume may be down, the number of transactions remains high,” Yanovski said. “This situation reflects ongoing activity across all asset classes among private investors.”

Yanovski also said there has been an uptick in off-market transactions.

“In addition, there has been a noticeable increase in the number of off-market transactions, as both domestic and foreign buyers continue to chase desirable assets and seek to secure favorable financing rates,” Yanovski said.