demand for Canadian real estate assets shows few signs of slowing in 2018
The 2018 Canadian
Economic Outlook and Market Fundamentals Research Report released today by
Morguard Corporation ("Morguard") (TSX: MRC) predicts another year of
robust commercial real estate investment activity in Canada, given healthy
demand for quality assets across the country.
enthusiastic about the Canadian commercial real estate market after a record
volume of transactions in 2017," said Keith Reading, Director of Research
at Morguard. "There is a high supply of capital ready to be invested and
Canadian commercial real estate is a proven performer. We are predicting
another very busy and competitive market environment across the country in the
The downtowns of Vancouver and
Toronto are expected to remain the most coveted of markets for investment in
2018 but with a limited supply of properties available, investors will be
forced to look for opportunities further afield. Suburban Toronto, Ottawa and
Montreal are also expected to see strong activity levels in 2018 while Alberta,
which had previously depressed country-wide statistics, is also showing signs
bidding for a limited pool of downtown properties will force investors to look
elsewhere for opportunity," said Reading. "Class A properties in
suburban markets, particularly those near transit nodes, will be in high
demand. Edmonton and Calgary will also see increased activity as investors look
for high-quality assets in a recovering market and economy."
In the retail market, the Sears
liquidation announcement will put a damper on near-term fundamentals in the
country's shopping centres. The departure will be partially offset by a steady
stream of new international entrants to Canada. Reading believes the retail
market will continue to offer stable long-term opportunity for Canadian
investors as malls are being re-envisioned as investors and landlords turn to
non-traditional tenants including medical, services, entertainment and
government agencies as part of their transformation into community hubs.
market-dominant retail centres should be able to alleviate immediate pressure
on vacancy by providing prime space to new, high-growth traditional retailers
and service retailers," said Reading. "The fact remains that Canada
is a country of shoppers, and recent positive economic and employment trends
should drive healthy spending growth for the foreseeable future."
With the pace of interest rates
hikes expected to remain slow, a continued and abundant flow of low-cost debt
and equity capital will power Canadian commercial real estate investment in
The 2018 Economic Outlook and
Market Fundamentals Research Report, released today by Morguard Corporation,
provides a detailed analysis of the 2018 real estate investment trends to watch
in Canada. The full report is available at www.morguard.com.
About Morguard Corporation
Morguard Corporation is a major
North American real estate company. It has extensive retail, office,
industrial, multi–suite residential, and hotel holdings owned directly, or
through its investment in Morguard REIT (TSX: MRT.UN), Morguard North American
Residential REIT (TSX: MRG.UN) and Temple Hotels Inc. (TSX:TPH). Morguard also
provides real estate management services to institutional and other investors.
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For further information: K. Rai
Sahi, Chief Executive Officer, T 905-281-3800; Keith Reading, Director of
Research, T 905-281-3800 or email firstname.lastname@example.org