Strong Growth Predicted For Commercial Real Estate

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    Morguard predicts a third consecutive year of strong performance for the Canadian commercial real estate market. It says the forecast rise in Canadian economic growth for 2014 bodes well for the nation’s rental market performance. As a result, the nation’s commercial property market will continue to provide investors with stable and positive income and attractive returns in helping them meet their investment objectives. “The Canadian real estate market will remain a stable and attractive source for investment yield and cash flow over the near term, while generating above-average activity levels in the sector over the next 12 months,” says Keith Reading, director of research at Morguard. “Canadian property values will remain close to the peak, with the relatively low cost of debt and equity funds supporting this trend.” A range of investor groups are expected to be active in Canada’s commercial property investment market, including pension funds, REITs, private capital, and institutions.