Atlantic Canada’s 2024 commercial real estate outlook remains “fairly optimistic” despite mounting economic challenges, says CBRE’s managing director for the region.

The investment safe havens of “beds, sheds and grocery/meds” will be in most demand in 2024, said Andrew Bergen in at a market outlook event that CBRE hosted in Halifax. But some contrarians will invest in the troubled office sector as downtown Halifax class A assets experience a flight-to-quality and the asset class displays resilience despite work-from-home trend impacts.

Investment volumes will end 2023 down 20% year-over-year from the $1.9 billion in assets traded, Bergen said. Multi-family continues to be the most traded asset class with new construction and class C buildings selling the most often.

Industrial assets are in demand but few investors are willing to sell following a year of unprecedented rent growth.

Meanwhile, retailers are lining up to capitalize on the region’s economic growth and increased population.

Photo: Courtesy of CBRE