The market is currently characterized by optimism and anticipation of robust growth
Despite substantial global economic turbulence at the beginning of 2022, investors remain keenly interested in acquiring Canadian commercial real estate assets, particularly in Vancouver and Toronto, according to Altus Group.
Also boosting the Canadian commercial market’s prospects is a recovery that has started taking root in Alberta, Altus said.
“The Canadian commercial real estate industry demonstrated resiliency throughout 2021, [and] investment activity kicked off 2022 with an upswing in momentum. All asset classes reported an increase in activity (with the exception of hotels) accompanied by a return in investor confidence,” Altus reported.
The Canadian commercial segment saw nearly $23.8 billion (up by 52% annually) across 3,250 transactions (up by 25%) during the first quarter of 2022.
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“A combination of excitement and tentativeness characterized 2022 with a note of cautious optimism and anticipation of growth in Canada’s commercial real estate space,” Altus said.
The most active asset classes in Q1 2022 were industrial ($5.8 billion) and office properties (just above $3 billion), followed by ICI and residential land (approximately $8.9 billion combined). Retail property transactions during the first quarter totalled $2.6 billion.
“While 2022 started with an upswing in investment momentum (especially for office assets), commercial properties that are essential and flexible in nature will continue to remain investor favourites as demand quickly evolves in response to changing macroeconomic factors,” Altus stated.
