The Canadian commercial real estate market continues to fluctuate from market to market. Vancouver and Toronto continue to see aggressive price growth and strong competition for well-placed assets. Secondary markets should benefit as investors look to these markets to place capital in the back half of 2017. However, with a lack of available product, prices remain competitive in these locations as well.
- Vancouver: The Vancouver market has thrived during the first half of 2017 in all property sectors signaling a very competitive market.
- Edmonton: Edmonton remains a consistent market with strong, well-placed assets garnering investor attention. Deal volume seems to be trending up towards the back half of 2017.
- Calgary: Retail and Industrial assets have remained stable in Calgary, while multi-family assets have shown signs of confidence as investors are willing to accept lower yields on new low-rise construction.
- Winnipeg: The industrial sector appears to be seeing downward pressure on cap rates in 2017 due to increased demand for multi-tenant properties with southwest Winnipeg becoming the most desirable location compared to other industrial areas of Winnipeg.
- Toronto: Looking forward, Toronto is expected to continue to experience a market where high-quality properties within the GTA will continue to attract top dollar as investors look to place capital.
- Ottawa: Ottawa has witnessed a shift after continued strong performance with developers expanding outside the scope of typical projects and transitioning into purpose-built rentals, seniors housing, and student housing as some examples.
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