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Canada's commercial real estate market remains steady despite the country's softening economic growth, says Morguard.

Morguard: Canadian CRE Market Remains Steady

Canada’s commercial real estate market remains steady despite the country’s softening economic growth, says Morguard.

Commercial property investment sales activity remained muted in the third quarter, in accordance with a year-long trend, said Toronto-based Morguard in a report. Canada’s top 10 markets reported approximately $4 billion of investment sales transaction volume.

But multi-residential real estate rental-rate growth accelerated as demand outpaced supply. Industrial property sales fell to $1 billion from $3 billion quarter-over-quarter, but industrial warehouse and logistics properties continued to attract interest with relatively attractive selling prices. And, downtown Toronto space recorded the strongest office-leasing performance.

“The industry has the potential to rebound in early 2024, depending on the central bank’s [interest] rate decisions and the effects of the monetary policy,” said Keith Reading, Toronto-based Morguard’s senior director of research, in a news release.

“The alleviation of inflationary pressures and adjustments in interest rates will remain pivotal in shaping the trajectory of Canada’s economy going forward.”

Retail investment was below $200 million, marking a five-year quarterly low.

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Inside The Story

MorguardKeith Reading

About Monte Stewart

Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate. Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s. In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star. Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.

  • ◦Lease
  • ◦Sale/Acquisition
  • ◦Development
  • ◦Financing
  • ◦Economy
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