TORONTO, Feb. 14 /CNW/ -- DTZ Barnicke released its annual "Global Views
2008" today. Among the most prominent trends, the report found that despite
the current credit situation that is reverberating out of the United States,
Canada's real estate market remains healthy.
"The fundamentals of Canada's real estate market remain sound and
continue to support a strong case for investment and development," said
Christopher Ridabock, DTZ Barnicke's Chief Executive Officer. "Rising prices
for energy resources and lower interest rates are fueling economic growth that
is driving down vacancies and spurring new development."
2007 was another strong year for real estate investment activity as
investors, both foreign and domestic, continued to view Canada in a positive
light. While there will undoubtedly be an impact on capital flows in 2008
around the world, Canada will continue to see positive investment activity.
"Canadian institutional investors and foreign investment are providing an
important source of capital for real estate, especially at a time when the
global credit markets limit debt financing options," said Andrew Barnicke,
Senior Vice President. "The interest from foreign investors is based on
Canada's better economic growth prospects on a worldwide scale."
Other key trends uncovered in this year's report include:
-- Demand for office space remains strong with vacancy rates on the
decline across the country with solid employment growth and a
relatively healthy economy driving demand for office space.
In Toronto and Calgary, which account for most of the roughly 17
million square feet currently under development, pre-leasing rates are
running at 60% and 66%, respectively. In some markets, pricing
continues to be below landlords' replacement costs, suggesting further
upside for rents.
-- American and European retailers continue to be attracted to Canada.
Consumer confidence remains solid, bolstered by solid job growth, low
interest rates and relatively healthy economy.
A number of foreign retailers are having a serious look at Canada as
part of their expansion plans including Brooks Brothers and Polo Ralph
Lauren, while others such as Lowes Home Improvement and Bed Bath &
Beyond made it a reality in 2007.
-- The "Green Movement" is becoming increasingly more popular in Canada
both in new construction practices and in the efforts of owners and
occupants of existing buildings to be more environmentally conscious.
Developers of most new office construction in Canada are seeking to
achieve some level of the Leadership in Energy and Environmental Design
(LEED) certification for their project. In addition the Building
Owners and Managers Association (BOMA) of Canada has certified over 500
buildings under their "Go Green" Environmental Certification program.
Eco-friendly new building practices can add 10%-15% to development
costs, but offers long-term savings from reduced energy consumption.
-- Serviced land shortages are a common theme across the country driven by
strong demand and government initiatives aimed at curbing sprawl in
some markets. These shortages combined with rising prices are spurring
increased interest in secondary markets.
The DTZ Barnicke "Global Views" 2008 report can be downloaded and viewed
in its entirety at http://www.dtzbarnicke.com/
About DTZ Barnicke
DTZ is a leading global real estate adviser with over 11,000 staff
operating across 140 cities in 45 countries working with clients throughout
the world. Its client-focused activities, which range from high quality
capital market solutions, to the more traditional occupier-led property
services and advice. The comprehensive service offering across EMEA, Asia
Pacific and the Americas is based upon detailed local knowledge backed by
first-class research. With its full-service expertise spanning all real estate
sectors, DTZ offers a truly global and comprehensive solution to each clients'
particular property-related investment and business needs.
For further information:
For further information: Amy Sarin, +1-212-850-5611, for DTZ Barnicke
Web Site: http://www.dtzbarnicke.com