2017 Canadian Economic Outlook and Market Fundamentals Report
Morguard is projecting another year of stable real estate investment performance in 2017 as investors look to the Canadian market for relatively stable yields. While there is a dichotomy between the financial and technology driven economies and resource-based economies in Canada, there remains attractive opportunities for investment. By the end of 2016, a record amount of capital, both debt and equity, was projected to flow into Canadian commercial real estate. Canadian investment transaction volume surged this past year reaching $27.4 billion in total over the first three quarters of 2016, compared with $16.9 billion over the same period in the previous year. Annual 2016 sales are projected to surpass the most recent annual peak of $32.1 billion in 2007. This immense growth in purchasing power, against a backdrop of moderately healthy Canadian economic fundamentals, was somewhat unique.
2016 Q4 Update - Canadian Economic Outlook and Market Fundamentals Report
Morguard’s Economic Outlook and Market Fundamentals Research report for the fourth quarter of 2016 indicated transaction activity in the Canadian commercial real estate market remained on a record high pace. Transaction closing volume in the fourth quarter resulted in an annual sales volume total of over $35.0 which represented a record high. Foreign capital was a key contributor to the total in adding to the demand strength of the fourth quarter. Upward pressure on property values was noted during the final few months of the year, especially for core properties in major markets. In particular, investors showed the highest levels of interest in Toronto and Vancouver’s office market of late, with several large assets transacting. Looking ahead, modest upward pressure on values will continue as demand outdistances the supply of core assets in Canada’s major markets.
2016 Q3 Update - Canadian Economic Outlook and Market Fundamentals Report
Morguard’s Economic Outlook and Market Fundamentals Research report for the third quarter of 2016 points to a sustained strong investment interest in Canada, particularly Ontario and British Columbia. While the cost of investing in the real estate sector remains high, particularly in the commercial office asset class, there remains equally strong competition for high quality assets – largely due to a lack of stable alternative investment opportunities. Domestic and foreign investor confidence continued to provide healthy liquidity in the third quarter, as has been the trend all year. Multi-suite residential continues to be a popular choice for investors, and is expected to remain so for the foreseeable future. Stock markets have rebounded from Brexit to return record performances, and impacts in Canada were minimal.
2016 Q2 Update - Canadian Economic Outlook and Market Fundamentals Report
Morguard’s Economic Outlook and Market Fundamentals Research report for the second quarter of 2016 points to strong investment interest across Canada. The country remains an attractive market for foreign capital investment, due to the relative stability of the property sector coupled with the low Canadian dollar. In addition, despite the forecasted erosion of office leasing fundamentals due to increasing supply, investors continue to find value in the sector, specifically in primary markets including: Vancouver, British Columbia, Toronto, Ontario and Montreal, Quebec. Another key finding indicates that equity markets have stabilized after the Brexit turbulence and the impact in Canada will remain modest.