TORONTO, Nov. 3 /CNW/ - Today, the Real Property Association of Canada (REALpac) and FPL Advisory Group released the results of their Fourth Quarter 2009 Canadian Real Estate Sentiment Survey.
Overall, Canadian real executives' sentiment on real estate markets has moved up meaningfully over the past quarter, more so than in the U.S. The Canadian Real Estate Sentiment Survey is identical to a survey of real estate executives in the U.S., which allows for a reliable, direct comparison between the two markets. As one respondent put it, "Canada is in far better shape than the U.S. Our banks are in good shape and they're lending. Unemployment is up, but it's not too bad. Overall, the fundamentals here are good."
The Overall Index is measured on a scale of 1-100 and represents an average of the Future Conditions Index and the Current Conditions Index. To register an Index of 100, all respondents would have to answer that they believe conditions are "much better" today than one year ago and will be "much better" one year from now. The Current REALpac/FPL Canadian Real Estate Sentiment Index rose from 50 in July to 68 in October. In the U.S., for the third consecutive quarter, the Real Estate Roundtable Sentiment Survey's Current Index rose from 38 in January 2009, to 41 in April, to 49 in July, to 63 in October.
More respondents are seeing positive real estate market trends and conditions as compared to Q3 '09, but any movement is expected to be slow. According to one executive surveyed, "We will see velocity again by Q3 '10, and a return to normal by 2013".
Real estate asset values are seen as materially down today, but expectations are up and respondents still report stronger pricing than in the U.S. Debt capital availability is seen as much improved since last quarter though it is still far from what was seen in 2007, and respondent perspectives on equity capital availability continue to track above those for debt capital. According to one respondent, "Equity has been tough since last November, now it's available, not in huge amounts, but it's there."
The survey captured the thoughts of 39 leading real estate executives, including CEOs, presidents, board members, and other top executives from a broad set of real estate sectors including owners and asset managers, financial services providers, and building operators and related service providers. Survey respondents represent income producing real estate including office buildings, retail shopping centres, industrial buildings, hotels, multi-family residential (apartment buildings), and seniors residences. This quarterly economic survey serves as a gauge of senior real estate executives' confidence in financial and real estate markets in Canada. The REALpac/FPL Canadian Real Estate Sentiment Survey measures executives' current and future outlook in three areas including overall real estate conditions, real estate asset values, and availability of capital. Three Sentiment Indices comprise the survey including a Current Conditions, Future Conditions and Overall Conditions Index.
To download a copy of the survey report, please visit the REALpac website at www.realpac.ca.
About the REALpac / FPL Canadian Real Estate Sentiment Survey
As Canada's most comprehensive measure of senior executives' confidence in the Canadian commercial real estate industry, the "REALpac/FPL Canadian Real Estate Sentiment Survey", conducted by FPL Advisory Group on behalf of the Real Property Association of Canada, captures the perspectives of senior real estate executives from a broad range of industry sectors including owners, developers and managers, financial service firms, and consultants representing major asset classes including office, retail, industrial, multi-family residential, hotel, seniors residential, and hotel, across Canada. The "REALpac/FPL Canadian Real Estate Sentiment Survey" is directly comparable to the "Real Estate Roundtable Sentiment Survey", conducted by FPL in the United States.
About the Real Property Association of Canada
REALpac is Canada's premier industry association for investment real property leaders. Our mission is to collectively influence public policy, to educate government and the public, and to ensure stable and beneficial real estate capital and property markets in Canada.
REALpac Members currently own in excess of $150 Billion CAD in real estate assets located in the major centres across Canada. Members include real estate investment trusts, publicly traded and large private companies, banks, brokerages, crown corporations, investment dealers, life companies, lenders, and pension funds. For more information, please visit us at www.realpac.ca.
About FPL Advisory Group
FPL Advisory Group ("FPL") is a family of companies focused on providing highly specialized advisory services to the real estate and related operating and financial services industries. Through our complementary practice areas, we work with our clients to develop the right talent, leadership, structure, and strategies for success in today's intensely competitive marketplace.
FPL is comprised of two primary operating companies that work together to serve a common client base. Ferguson Partners provides executive, director, and professional search services. FPL Associates provides a range of specialized consulting and finance-related services in the areas of compensation, management consulting, executive onboarding, and succession planning. The firm is headquartered in Chicago and maintains offices in London, New York, San Francisco, and Tokyo. For more information, please visit www.fpladvisorygroup.com.
SOURCE Real Property Association of Canada
For further information: For further information: Michael Brooks, CEO, REALpac, (416) 642-2700 x.225; or Jonas Bordo, Senior Director, FPL Advisory Group, (888) 368-6598 (toll free)