The Canadian commercial real estate market is in good shape, according to CBRE Canada, which is forecasting a “steady and stable” remainder of the year. PricewaterhouseCoopers (PwC) has assigned an overall rating of “modestly good” to the country’s nine largest commercial real estate markets.
The forecasts vary depending on the asset class (retail, office, industrial, investment) and the market, but Canada remains “on the radar for new capital investment” due to “a lack of volatility in the Canadian economy coupled with steady job growth” according to CBRE.
The retail and office markets are predicted to do well this year, in keeping with the trend of urbanisation. Mixed-use office and condo developments with blocks of shops and restaurants are becoming more common.
City residents won’t have to travel far to go to work, but their actual work space is expected to shrink as employers seek to cut costs in the office towers that have been built in Toronto’s construction boom.
With retail and office construction in Toronto on the rise and demand for space high, there is a distinct lack of large blocks of space.
Other cities in Ontario are reaping the benefits of investor demand. The Region of Durham has become a hot spot for manufacturing.
Retail and residential growth will inevitably follow. Mississauga and Vaughn are expected to continue to perform well, thanks to the available industrial space and the area’s pro-business mentality.
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