Commercial Real Estate Rebounds in Canada
Canada's commercial real estate market is rebounding faster than many in the industry projected just a few months ago. The market unexpectedly caught fire in September as access to capital improved and buyers waded into the depressed market, and a full-blown recovery seems under way in major segments of the market.
"Things have changed," said PwC partner Frank Magliocco as he released the report yesterday. "Things just took off." There have been three deals worth more than $100-million in the past month - an apartment portfolio in Vancouver, as well as residential land and a downtown building in Toronto - which would have been unthinkable in July.
"If I told you in the spring that those deals would happen, you'd have told me I was crazy," said George Carras, president of tracking firm RealNet Canada Inc. "There was no way you'd have believed me, sentiment was just too low."
There have been other signs of recovery, most notably the first quarter of growth in Toronto's commercial real estate sector after 18 months of declining fortunes. Data for Calgary and Vancouver show those markets stabilizing as well, according to RealNet.