Canada: Positioning for 2014 and Beyond, by Avison Young
Focus on building capital positions in 2013, perhaps selling non-strategic assets to fund a war chest; arrange for access to additional debt and equity as 2014 appears bright, says the Avison Young 2013 Forecast report.
Other recommendations in the report include:
- Re-balance investment portfolios according to a five-year strategy horizon and adjust corporate real estate occupancy.
- If financing or re-financing, seek longer-term maturities at today’s unprecedented low rates.
“Coming off what will likely be a record year in commercial real estate investment sales in Canada, and given the small investable universe and competitive climate that has emerged, cross-border activity will grow further. Although 10-year bond yields are similar between Canada and the United States, for the most part, cap rates are generally higher in the U.S. The wider spread in investment yields will intensify cross-border activity with more Canadian buyers looking for bargains in secondary markets, while others will continue to bid for assets in fortress or gateway markets, either alone or through joint-venture partnerships,” said Bill Argeropoulos, vice president and director of research (Canada) for Avison Young.
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