Canadian Office and Industrial Market Snapshots, by Colliers Canada
The latest Colliers Canada national commercial real estate forecasts highlight office and industrial activity in the nation’s six largest markets (Vancouver, Edmonton, Calgary, Toronto, Ottawa and Montreal) for 2014 to 2017. The “snapshots” also identify year-over-year market trends between the fourth quarters of 2012 and 2013.
Key highlights include the following:
- The financial, real estate and insurance (FIRE) sector will contribute to increasing growth in the Greater Toronto Area office market.
- Although the federal government’s ongoing fiscal austerity measures have dramatically increased the office vacancy rate in the Ottawa market, the emergence of the information communications and technology (ICT) sector there is creating the potential for new growth.
- “Cautious optimism” is the trending buzz word for the Vancouver and Calgary office markets. In Calgary, supply is abundant and demand is hesitant because of the political standstill on the approval of two major pipeline projects. (The energy sector is expected to play a crucial role in the future of the Calgary office market.) Vancouver’s office market is expecting an abundance of new top-quality (AAA) office supply over the next three years, which will limit the demand for lower-quality (A and B) office buildings.
- As the U.S. economy strengthens and the Canadian dollar softens, most industrial markets should see growth over the next few years. Job growth and increased investment in the aerospace and technology sectors, in particular, will stimulate the Montreal economy, while the billions of dollars invested in natural resource production will foster growing industrial activity in the booming Calgary and Edmonton markets.
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