Commercial Real Estate Shows No Sign of Stagnating
Low interest rates and high demand drives growth in 3 Key Canadian Cities
Toronto, ON, May 15th, 2014 – Economists have suggested we would face a rough ride in real estate. But the bumps have yet to be felt and Canadians’ steady diet of expecting the worst, but finding the best, seems set to continue. A comparison of first quarter 2013 and 2014 Commercial sales figures from the greater Toronto, Calgary and Vancouver areas shows Canada’s high-end commercial real estate markets are going strong.
According to RealNet Canada Inc., between Q1 2013 and 2014, the number of transactions in the “greater than $1 million” category rose by 95 in the GTA to 481. The total dollar volume of sales rose from $2.8 to $4.3 billion. Similarly, 107 more transactions occurred in the GVA’s “greater than $1 million” category, showing a 48% increase in deal counts. Dollar volumes of sales rose 38% in this category.
While Calgary’s high-end markets showed less impressive increases, deal counts still went up by 4, with 93 transactions of over $1 million, and a 34% dollar volume growth in land transactions was noted. Calgary’s market is bolstered by the province’s rich oil and gas reserves, as well as a steady influx of job seekers.
Paul Richter, Director of Research at RealNet® , says, “No matter the size of the deal, Canadian investors have a penchant for longer-term investment strategies that ultimately limit risk. A high demand for higher value assets remains strong across the board. Low interest rates continue to attract both smaller business owners as well as developers and intensification policies in regions like Toronto drive developers to continue acquiring a growing number of infill development sites.”
Lucie Piazza, National Commercial Manager at Royal LePage Canada, emphasizes, “Agents across the country are focused on collaboration, to ensure their clients get the information and guidance they need in this impressive commercial market.”
Canada’s commercial figures tell of a burgeoning market, with promising signs of strength in the period to come.
Royal LePage Canada For over 100 years (1913 – 2013), Royal LePage has been, and continues to be, one of the most widely recognized and well respected real estate brokerage brands in Canada. In its 100th anniversary year, Royal LePage Commercial was re-launched by Royal LePage (a wholly owned subsidiary of Brascan Asset Management). The inspiration for the re-launch dates back to when Royal LePage Commercial Inc. was separately incorporated from its residential division in 1984. It charted the landscape for the development and growth of the Canadian commercial real estate industry and quickly grew to become the premiere, full service brokerage across Canada. It gained an excellent reputation both nationally and internationally and became the brokerage of choice for many of Canada’s real estate stakeholders, A-list tenants and investors.
RealNet Canada Inc. Founded in 1995, at a time when distress transactions and lack of capital defined property markets, REALNET® has used market intelligence and insights to transform the Canadian property market into one of the most highly regarded and trusted in the world---by focusing unwaveringly on enabling better informed client decisions. In commercial investment markets in the Greater Toronto, Golden Horseshoe, Calgary, and Vancouver markets and in residential development and new homes markets in the Greater Toronto and Golden Horseshoe REALNET® can empower you the way it empowers more than 45,000 professionals across Canada. Start with better research and let the unique REALNET® platform of market analysis, insights and world-class systems and tools allow you to be better informed and well connected.
For more information, please contact:
National Manager - Commercial
Royal LePage Canada