Vigorous demand has investors looking beyond Toronto and Vancouver
as 2017 shows little sign of slowdown
Canadian Economic Outlook & Market Fundamentals
Third Quarter Update 2017
MISSISSAUGA, ON, Oct. 26, 2017 /CNW/ - Canadian commercial real estate activity continued at a robust pace in the third quarter of 2017 with signs now pointing to a record year for investment, according to a research report issued today by Morguard Corporation ("Morguard") (TSX: MRC).
"Investors are continuing to exhibit confidence in Canadian commercial real estate, with projected sales for 2017 surpassing 2016 levels," said Keith Reading, Director of Research at Morguard. "With several significant transactions during the third quarter and a number of high-profile, high-interest properties expected to sell before the end of the year, we are looking at a record year for real estate investment in this country."
Canada's office sector led the way with a second consecutive quarter of over $1 Billion in sales. Multi-suite residential, industrial and retail property sales also remained brisk. While downtown Toronto and Vancouver properties continue to garner the most intense bidding, investors are finding value in markets outside the downtown cores.
"With demand for properties in the downtown urban centres far outstripping supply, investors are extending their reach into the surrounding markets like the GTA and Greater Vancouver," said Reading. "Even Alberta, which is still feeling the effects of the oil downturn, is seeing significant speculative investment in the industrial sector, a sign of the market's confidence in the long-term health of the real estate market."
Investors in Canadian commercial real estate can expect more of the same strong performance to close off 2017, despite a rise in interest rates and tightening monetary policy. A strengthened Canadian dollar, increasing inflation and slowing economic growth indicate that the pace of interest rate increases will slow.
"With rate hikes showing the desired cooling effect on housing markets, the Bank of Canada is expected to take a more patient approach to interest rates in the near future," said Reading. "The continued and abundant access to low-cost debt and equity capital will power commercial real estate investment into 2018."
The Third Quarter Update of the 2017 Economic Outlook and Market Fundamentals Research Report, released today by Morguard Corporation, provides a detailed analysis of the 2017 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. Morguard's owned and managed portfolio of assets is valued at $21.9 billion.
Forward Looking Statement Disclaimer
Statements contained herein that are not based on historical or current fact, including without limitation statements containing the words "anticipates," "believes," "may," "continue," "estimate," "expects" and "will" and words of similar expression, constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions, both nationally and regionally; changes in business strategy; financing risk; existing governmental regulations and changes in, or the failure to comply with, governmental regulations; liability and other claims asserted; and other factors. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Publisher does not assume the obligation to update or revise any forward-looking statements.
SOURCE Morguard Corporation
For further information: K. Rai Sahi, Chief Executive Officer, T 905-281-3800; Keith Reading, Director of Research, T 905-281-3800