“Steady as she goes” aptly describes the prevailing trend in investor sentiment through Q3 as compared to Q2. While different parts of the Country saw varying levels of activity, little overall change was observed in capitalization rates being reflected on Q3 transactions. Some minor cap rate compression was observed in portions of Ontario’s major industrial markets. Conversely, cap rate indications inched slightly upward in various segments of Vancouver’s markets compared to the prior quarter. Beyond these minor movements, the majority of market sectors across the Country proved to be relatively consistent over the quarter.
- Vancouver:Industrial and apartment assets have seen the majority of large transaction size over the last few months, with office and retail activity being quieter for larger deals, although reflecting some activity on smaller projects.
- Edmonton:Capitalization Rates continue to remain relatively stable in Edmonton, with no real cap rate indicators as yet in the office market. The retail market was fairly active, whereas industrial activity was more limited, and cap rates were seen to be stable in both of these sectors.
- Calgary: Demand for good quality industrial and retail assets remains healthy in Calgary, but continues to be offset by an overall cautious investor outlook regarding the office sector.
- Winnipeg:Demand for good quality investment property in Winnipeg continues to be strong, with the Fall months expected to be busy for transactions.
- Toronto: The overall trends witnessed throughout the GTA investment market in the first half of 2019 have persisted into the third quarter. Well located, well leased assets continue to be sought after, with activity levels restrained primarily by fewer offerings coming to market.
- Ottawa:The third Quarter of 2019 maintained the trends that began early in the year in Ottawa. The office market remains strong with good demand for good quality assets, and the industrial market shows continuing strength with a tight supply expected to generate some lease rate growth. Multi-family also continues to show positive conditions and activity.
- Montreal: Optimism is still evident in Montreal’s real estate market, with much activity in the industrial and multi-residential markets, and with the office market also remaining stable, while retail activity has been somewhat more quiet.