The Colliers Canada national snapshot focuses on the economic and commercial real estate outlook over the next three years (2014-2017) in Canada’s six largest markets: Vancouver, Edmonton, Calgary, Toronto, Ottawa, and Montreal. The snapshots look to provide insight into the role that the office and industrial markets will play over the next three years, as well as identifying year-over-year market statistical trends between Q4-2012 and Q4-2013.
The underlying objective of these snapshots is to highlight the office and industrial activity in the major markets across Canada in relation to various economic activities that are anticipated within the next three years.
- The Financial, Real Estate, and Insurance (FIRE) sector take the lead in the growing office market in the Greater Toronto Area. Alternatively, the federal governments ongoing fiscal austerity measures has dramatically increased the office vacancy rate in the Ottawa market; but with the emergences of the Information Communications and Technology (ICT) sector the Ottawa office market has potential.
- Cautionary optimism is the trending buzz word when discussing the Vancouver and Calgary office market. In Calgary, supply is abundant and demand is hesitant due to the political standstill on the approval of two major pipeline projects. The energy sector will play a crucial role in the future of the Calgary office market. Additionally, Vancouver’s office market is expecting plenty of AAA office supply over the next three years, which will impact the demand for lower quality A and B class office buildings.
- With a strengthening United States economy and softening Canadian dollar, most industrial markets should expect growth over the next few years. In particular, the job growth and increased investment in the aerospace and technology sector will stimulate the Montreal economy; as well the billions of dollars invested in natural resource production will foster the growing industrial activity in the booming Calgary and Edmonton markets.