(Source: Globe and Mail)
Commercial real estate values in Canada have decreased by as much as 20 per cent through the recession and won’t start increasing again until the middle of next year, according to PricewaterhouseCoopers LLP.
In a report released Tuesday and co-authored by the Urban Land Institute, PwC said conservative banking practices and stricter regulation likely kept real estate investors from overextending themselves with debt. But the 900 professionals surveyed still worry that a prolonged U.S. slump will chip away at their Canadian investments.
“The conservative, careful approach to managing government and markets is paying dividends now for Canadian real estate players,” said Frank Magliocco, who leads the PwC Canada real estate practice. “Sideswiped by the U.S. fallout, they experienced a manageable market correction rather than a full-blown credit crisis precipitated market meltdown.”
Read Steve Ladurantaye’s full article “Commercial property values sink ” in The Globe and Mail (November 11, 2009).