MISSISSAUGA, ONT. — Morguard Corporation released its 2020 Canadian Economic Outlook and Market Fundamentals Report which states that investor confidence remained strong in the multi-suite residential, industrial and office segments in 2019 as demand continued to outpace supply of properties in these asset classes.
The report, Morguard’s 22nd annual edition, provides a detailed 2019 market update and an overview of the 2020 investment trends to watch. Report findings include:
- The multi-suite residential asset class performed at a healthy level for investors in 2019. Nationally, economic growth and ongoing demographic trends continued to support strong rental market conditions throughout the year. In 2020, positive rental demand patterns and constrained supply will continue to place upward pressure on rents in major cities.
- The industrial asset class experienced an extension of the bullish phase of its investment cycle as investors continued to bid on available properties with confidence, following record high annual transaction volume of $12.7 billion in 2018. Sourcing available space to lease remained a significant challenge across the country, forcing several businesses to look at design-build opportunities to meet their accommodation needs. In 2020, sales activity is expected to remain brisk, continuing the trend of the past few years.
- In the office market, investment sales activity continued at a record pace in 2019. Canada’s technology sector continued to drive demand for leased space, resulting in upward pressure on average rents, especially in downtown areas of major cities.
- Ongoing changes in the retail industry and the resulting uncertainty drove investors to exercise increased caution in 2019.
“Commercial real estate remained one of the most attractive and stable long-term investments in 2019 and will continue to attract interest from investors in 2020,” said Keith Reading, director of research at Morguard, in a statement.
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