TORONTO—According to Altus Group’s latest blog posts, the commercial real estate (CRE) market is on the upswing in Canada, with increasing transaction volume across most major markets and the continued return of investor confidence following the slowdown related to COVID-19 in 2020.
National investment volume in the first quarter increased 25 per cent compared to this time last year, reaching a total of nearly $15 billion, indicates a release.
The industrial sector also reported robust activity in Q1 2021, with $3.5 billion in volume, marking a 46 per cent increase compared to the same quarter last year and composing 23 per cent of total transaction volume for the quarter.
Land sectors also saw substantial increases in the first quarter, with ICI land reaching $2.4 billion in value, up 49 per cent compared to Q1 2020, and residential land reaching $3.6 billion, up 54 per cent. The two sectors make up 40 per cent of the total volume for the first quarter of 2021.
In addition, multi-family has also seen a rise of 23 per cent compared to last year, reaching just under $3.0 billion in volume.
The office market continues to be affected by pandemic-related impacts, seeing $822 million in transactions in the first quarter, down 50 per cent compared to Q1 last year.
On the other hand, the retail sector marked a 10 per cent increase in transaction volume compared to Q1 2020, reaching $1.7 billion, even though they experienced lockdowns at the beginning of the year.
Altus reports all major markets in Canada recorded growing investment volume in the first quarter of this year, aside from Edmonton dropping 45 per cent, Ottawa decreasing slightly by four per cent and Montreal remaining relatively stable, with a drop of 0.4 per cent.