Canadian Commercial Real Estate – A Market Worth Considering
The Canadian commercial real estate market is continuing to boom, according to a new report from CBRE Ltd.
In 2017, Canada’s commercial market set another record for investments — one of only four countries in the world to do so.
According to the report, there were $43.1 billion in commercial investments last year (this was more than 2016, when there were $34.7 billion). CBRE is predicting 2018’s investments will be even higher.
If you’re in the real estate selling or developing business, this is good news, particularly as new Canadian mortgage rules and increasing interest rates affect residential real estate.
CBRE Ltd. found that Vancouver and Toronto had the lowest downtown office vacancies in North America at the beginning of 2018. Toronto had 3.7 per cent and Vancouver had 5 per cent. The report predicts those rates will fall even lower this year as tenant demand increases.
For those located outside of these major cities, there’s good news, too. CBRE says this trend is spreading across the country. Montreal posted more than 1.9 million sq. ft. Of positive net absorption in 2017, which the report says is a record amount of tenant demand. London, Ont., the Waterloo Region, Ottawa, and Halifax could all be seeing increased demand for downtown office vacancy.
There is also more to gain in rental payments. In 2017, national industrial average net asking rents reached an all-time high of $6.97 per sq. ft.
The report also points to another interesting trend — the demand for land. Land sales will continue to set pricing records in a variety of markets across Canada, it says. The combination of record low office vacancy and industrial availability could also spur new construction.
If you’re not already selling commercial real estate, this could be the time to consider starting. What downtown office vacancies exist in your market? Are there any future construction projects in the works? These could turn up new real estate leads.
There could also be opportunity even if you’re not selling in a major market. If you know that downtown office space is tight in Toronto, but you sell in outlying areas of the GTA, consider advertising any vacant office space that exists outside the city limits.
If you are already selling Canadian commercial real estate, or considering expanding your real estate markets, the CBRE report can be a great resource as it dives deep into real estate trends by city. You can access the report here: https://www.cbre.com/research-and-reports.
Another great resource whether you’re selling commercial or residential real estate? GeoWarehouse. Our reports, images, and searches maximize your understanding of a property’s attributes and value and minimize uncertainty in completing land transactions.
Learn more about our technology at www.geowarehouse.ca.