Large deals are finally returning to the Canadian commercial real estate investment market following the COVID-19 pandemic, says a Colliers report.

Office, retail and industrial properties valued around $200 million traded in the second quarter of 2023. The Colliers findings came as Brookfield Asset Management indicated that it will make significant investments in the next 12-18 months as economic headwinds deflate property values in stressed global markets.

According to Colliers, private buyers dominated the market, continuing a trend that accelerated during the pandemic.

“Foreign buyers continue to show interest in Canada, where a combination of favourable demographics and low rents in world context look attractive to major investors,” said Colliers in the report.

However, investment volume fell 40 per cent, to $5.4 billion, quarter-over-quarter and year-over-year as interest-rate increases continued to hamper the market. But, Colliers said, year-over-year comparisons will be less dramatic because quarters will no longer be “super-charged” by post-lockdown activity and record-low interest rates.