Canadian Commercial Markets to Remain Stable in 2013, by Avison Young
The office, industrial and retail markets continue to display sound and improving fundamentals across most sectors and asset classes, says the Avison Young 2013 Forecast report. Attractively priced capital and all-time-low borrowing costs will fuel the flow of capital to real estate throughout 2013.
Key points by product type include:
Office – Demand will be frustrated in some markets by the shortage of available space, putting upward pressure on rents in affected market segments until the developments currently underway are delivered, starting in 2014.
Industrial – Developers in most cities have responded to tight market conditions with build-to-suit and speculative construction, with increased demand — especially from U.S.-based corporations — for facilities offering higher clear heights and multiple large bays.
Retail – Steadily rising retail sales growth in most Canadian markets, coupled with aggressive U.S. expansion into Canada, has kept retail stock almost fully occupied and the development pipeline active. Landlords are repositioning retail centers to retain tenants and attract the new brands coming to Canada from the United States and Europe. Live-work-play downtown lifestyles are increasingly popular, and urban retail intensification is transforming urban centers.
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