Canadian Market Outlook, by CBRE
CBRE’s “Canadian Market Outlook 2014” forecasts market trends and drivers in the Canadian commercial real estate market. The report predicts “tremendous development in many industrial markets across the country,” as well “pockets of retail and office space [that] are expected to record increased demand for space in the coming year.” While the full impact of a significant supply of new commercial real estate won’t be apparent for several years, the report continues, “The numbers are already impressive, with some 6 million square feet of office space coming into the market in 2014.” And “a lack of volatility in the Canadian economy coupled with steady job growth continues to keep Canada on the radar for new capital investment.”
While downtown office construction is booming, “many office tenants are reducing the size of their real estate footprint and embracing new workspace strategies,” the report notes, adding that tenants are trying to make more efficient use of their physical environments and more mobile workforces. The industrial sector “is going strong and expected to stay that way in many parts of the country through 2014” and while “the lack of modern, high efficiency space will continue to support new construction,” “prohibitive development fees in some communities will continue to prompt developers to invest in old buildings rather than build new ones.”
Individual market profiles offer snapshots, forecasts, statistics, and “projects to watch” for Canada’s nine major commercial real estate markets. “Downtown Toronto is experiencing the largest office construction boom since the early 1990s,” while “Winnipeg’s industrial market is revealing a stark divide between demand for distribution-focused space versus manufacturing facilities.” In Vancouver, “the investment market continues to thrive as demand for core real estate downtown and quality property in key suburban nodes persists from local and foreign investors.” And in Edmonton, the “industrial market is booming” and “suburban office continues to show impressive growth.”
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