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2018 Q2 Update - Canadian Economic Outlook and Market Fundamentals Report
The overall pace of Canadian commercial real estate transactions has slowed, but the dip in volume is very much a function of low product availability rather than a drop in demand, according to Morguard’s second quarter Economic Outlook and Market Fundamentals Research report. Multi-suite residential properties bucked the trend, with transaction volumes growing by 17.5% over last year. A shortfall of functional space has also been characteristic of the strong leasing activity in the office and industrial sectors, with cycle-low vacancy rates occurring in most regions. On the economic front, the Bank of Canada’s July interest rate increase was widely anticipated by investors and indicates the Bank expects economic activity to pick up through the balance of the year.
2018 Q1 Update - Canadian Economic Outlook and Market Fundamentals Report
Morguard’s first quarter Economic Outlook and Market Fundamentals Research report finds that Canadian commercial real estate activity was off to a strong start in 2018 as demand continues to outstrip supply. The appetite for commercial real estate investment remains at peak highs, with the flow of capital only being limited by the supply of assets available. Unbalanced demand was noted across all asset classes, with office again leading the way. Despite heightened risk due to increased vacancies, retail property values also remained fairly stable. Lingering uncertainty over NAFTA negotiations led to a global slowdown in economic activity in Q1, strengthening the belief that the Bank of Canada would continue to take a cautious approach to future interest rate hikes.
2018 Canadian Economic Outlook and Market Fundamentals Report
In the 2018 Canadian Economic Outlook & Market Fundamentals report, Morguard predicts another year of robust commercial real estate investment activity in Canada, with healthy demand for quality assets across the country. Investors remain enthusiastic about the Canadian commercial real estate market after a record volume of transactions in 2017. There is a high supply of capital ready to be invested, and Canadian commercial real estate is a proven performer. Morguard is predicting another very busy and competitive market environment for commercial real estate across the country in the coming year. Morguard's report covers commercial, industrial, multi-suite residential and retail markets. It is published yearly, with quarterly updates to the report. Morguard develops these reports based on experience in property management, Canadian REIT's as well as property investment.
2017 Q4 Update - Canadian Economic Outlook and Market Fundamentals Report
Morguard’s Q4 update finds that Canadian commercial real estate extended its run at the top of the business cycle through to the end of 2017, with few signs of abatement. Anticipated sale completions were expected to push annual transaction volume to a new record high by eclipsing the $34.7 billion peak reached last year. In the office leasing market, a moderately positive fourth quarter marked the end of a largely successful year. Investors showed little hesitance in acquiring retail investment properties despite ongoing sector headwinds, while Canada’s industrial property sector is poised for a continuation of its recent run of strong investment performance. On the economic front, a slowdown in the housing market, less robust labour market progress and the potential end to NAFTA are expected to weigh on the performance of the equity market.