Morguard’s recognized Research team provides quarterly and annual research reports for investors to make informed decisions on how real estate can make a significant contribution to an investment portfolio.
To download a Research report, click on the title of the desired report below.
2014 Q1 Update – Canadian Economic Outlook and Market Fundamentals
Canada’s commercial property market got off to a fairly positive start to the year. Investment demand was robust, with most offerings receiving healthy interest levels from private and institutional capital sources. While capital market players stayed on the sidelines to a large extent, bidding activity was healthy for “core” quality assets. As a result, pricing levels held at the cycle peak. The question of whether the current capital growth cycle had reached an end continued to occupy the minds of many industry participants. In the meantime, low interest rates and access to debt and equity funds continue to drive transaction activity. In the nation’s rental markets, office demand remained sluggish, against a backdrop of largely healthy demand in the retail, industrial, and multi-family asset classes. Despite global headwinds, the near-term performance outlook for Canada’s property sector is positive, a forecast predicated on ongoing recovery in the US.
2014 Canadian Economic Outlook and Market Fundamentals
The 2014 Canadian Economic Outlook and Market Fundamentals Research Report provides a comprehensive review and outlook for each real estate product class and each major metropolitan area across the country.
The steady run of strong investment performance for Canadian real estate continued during 2013, representing the fourth consecutive year of the recovery cycle. Interest rates and cap rates remained at or near secular lows, while leasing market fundamentals were stable in most markets across the country. The result was continued solid cash flows, income returns and capital appreciation in virtually every sector of the market. Investment appetite remained strong and the year proved to be one of the most active on record.
All eyes continue to be focused on the outlook for interest rates and their potential impact on property values. At the same time, investors are also sounding notes of caution about the levels of new supply that are on the horizon as a result of development activity in the residential and office sectors. Will the Canadian economy expand quickly enough to generate sufficient tenant demand to fill the available new space? Will operating incomes grow fast enough to offset any potential increase in cap rates?
2013 Q4 Update – Canadian Economic Outlook and Market Fundamentals
Morguard's Canadian Economic Outlook and Market Fundamentals Report was developed to assist investors and other industry participants with not only their day-to-day real estate decisions but to adjust current strategies or develop new ones. The document contains an outline of economic, demographic and capital market influences and trends and forecasts for each real estate property class, both on a national and metropolitan level. The detailed findings can be used to develop individual asset or portfolio decisions that can drive the success of individual organizations or investors, by maximizing their return on investment or to meet other goals and objectives.
2013 Q3 Update - Canadian Economic Outlook and Market Fundamentals
The quarterly update report provides commentary on investment trends, economic data, financial conditions and leasing fundamentals that affect the performance, attractiveness and associated risk and outlook for the real estate investment market in Canada.
The big news for the third quarter was the impact of on the REIT sector of increased borrowing costs and the US Fed’s statement relating to the potential for a tapering of its bond purchase program. In what some have termed a “knee-jerk” reaction, investors withdrew funds from the real estate capital market in anticipation of rising levels of risk and expectations of weaker performance. This resulted in values falling, on average, between 10% and 15% for the period. The impact on the broader market was two-fold. First, for a short time REITs were absent when bids were due on some assets for sale on the open market. This provided a window of opportunity for investors, who were outbid in numerous cases during the current cycle. Secondly, the broader uncertainty was reflected in cap rates for non-core properties. Rates either leveled, or increased slightly. As the fourth quarter commenced, it appeared that a stabilizing trend might be emerging, as the market looked on with great interest.