Over the past few weeks we have written about commercial property’s strong performance amid the slowdown in property prices. This topic keeps coming back as more experts agree with the idea. The brokerage Avison Young Canada Inc. stated that commercial property in Canada will continue to boom in 2019 due to low unemployment rate and tight supply.
Avison Young Canada Inc.’s CEP, Mark Rose, reported that “More capital is available to move into real estate debt and equity than at any other time. The next wave of investment is not a matter of if or when — it’s just a matter of price.”
Last year, commercial property investment reached record high, according to the report written by the brokerage. Vacancies for office space declined in most places in Canada reaching an average of 11% at the end of 2018. Office space in 2018 did double and it is expected to increase the vacancy rate to over 11% in 2019.
Industrial vacancy rates were record low, at 2.9% by the end of 2018, with Vancouver and Toronto having the lowest rates at 1.5% and 1.3% respectively. Industrial vacancy rates are expected to drop further in 2019.
Retail vacancies are increasing due to a shift in purchasing habits to online shopping and big chains closing. Landlords will shift their focus to mix developments, incorporating housing and offices to retail projects.
If you want to discuss the commercial property market, please reach out using the form below or give us a call to (604) 281.1050.