(BBH Summary) Higher vacancy rates and rent defaults in the harsh Canadian economic environment is causing concern and headaches for commercial landlords. Scott Addison, executive managing director of Colliers International expects commercial real estate to pickup in the second half of 2010 at best – several months behind the improving economy as a whole. Compounding the issue for commercial property investors and landlords is the degree of leverage and hard hitting interest payments associated with their properties. Nationally, investors are most concerned about the Calgary and Toronto markets where oversupply is feared.
(Source: The Toronto Star)
Commercial landlords say their biggest concern during the recession is the financial stability of tenants as tough economic times are resulting in higher vacancy rates and rent defaults…
Read the full article by Tony Wong “Lean times for commercial properties” in the Toronto Star (Sept 18, 2009).