
Morguard: Canadian Major Markets Remain Resilient
Modest Canadian major market investment growth in the second quarter bodes well for the rest of 2023, says Morguard.
Major markets remained resilient as total investment rose slightly year-over-year to approximately $4.3 billion, said Morguard in its quarterly report and economic outlook.
Total investment rose to $4.3 billion as investors continued to covet industrial and multi-family rental properties. However, valuations in those sectors have decreased slightly from their peaks.
Industrial sales of about $3 billion were double the previous quarter’s total and represented a five-quarter high. Multi-family investment rose 25.9 per cent quarter-over-quarter and 10.6 per cent year-over-year.
Office and retail investment declined slightly.
Investors remained sour on office as its national availability rate hit a 30-year high of 18.1 per cent. Retail investment was below $300 million as interest-rate hikes, changing consumer behaviour and reduced portfolio availability continued to affect the sector.
Morguard, a Mississauga, Ont.-based institutional investor, holds $18.8 billion in diversified assets under management across North America.
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