TORONTO – The Canadian commercial property market once again set a record for investment in 2017 and was one of only four countries in the world to do so, according to a new report from CBRE Ltd
. there are more than $ 43.1 billion of investments last year, which exceeds $ 34.7 billion in 2016, and CBRE predicts that another record will be established in 2018.
CBRE said the demand from strong tenants was accompanied by declining vacancy rates being close to almost all of the lows in many Canadian markets will lead to sharp rises in rental rates.
"Investors do not shy away from commercial real estate in Canada," said CB Morandutti, Executive Director of CBRE Canada Tuesday.
"We have a record low vacancy rate, record low unemployment, increasing institutional allocation to real estate and supportive immigration that fuels population growth."
CBRE said, however, that the commercial property market in 2018 is at some risk runs, including rising interest rates and the fate of the North American Free Trade Agreement, but it believes that the underlying strength in the market will outweigh these concerns.
The company says that Toronto and Vancouver 2018 started with the lowest vacancies in the North American city center with 3.7 percent and 5.0 percent respectively and predicts that these percentages will be even lower this year due to the growing demand from tenants and a shortage of new office supplies.
CBRE says the growth in tenant demand is expanding to other cities, with the office in the city center. The vacancy rates will also fall in London, Ont., The Waterloo region, Ottawa, Montreal and Halifax.
After a peak of the past two years, CBRE predicts that the vacancy rates will finally stabilize in Calgary as the recovery starts in Alberta.
"In 2018, Canada is once again at the center of two very powerful investment trends," said Morassutti.