Office vacancies on the rise, but globally, safe-haven Canada is in demand

January 16, 2017 8:27 pm

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Canada’s office market is facing too much new supply and demand can’t keep up, according to a new forecast out Thursday which predicts the 2017 market will get even softer.

Despite the weakening fundamentals, real estate company Avison Young says Canada will continue to see capital chasing property because of global uncertainty.

“In the face of ongoing global political and economic upheaval, stability will define Canada’s commercial real estate sector in 2017,” said Bill Argeropoulos, principal and practice leader of research in Canada for Avison Young. “The investment market was red-hot in 2016. If only we had more product for sale to match the capital chasing it. Elevated pricing in key entry markets such as Vancouver and Toronto led some owners to sell assets, including whole or partial interests, to crystallize gains, fund new investments and pay down debt, while joint-ventures are increasingly popular as a means of spreading risk.”

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