August 23, 2010
CB Richard Ellis said in a recent survey that commercial real-estate in Canada is hot!
Well, they did not say the word “hot” specifically, but mentioned that the Canadian markets showing improving debt markets and lower interest rates have helped to fuel the rise in commercial real-estate transactions.
According to the survey, there were $7.8 billion worth of transactions through the first six months of 2010, which is a 60.2 per cent improvement over the $4.9 billion for the same period a year earlier. Boom!
There were also a heck of a lot more transaction, jumping from 1,565 to 2,243.
CB Richard Ellis’ survey does come with a little disclaimer, noting that while there was a large increase in the number of transaction from 2009, the mid-year figures from 2009 were well below historical averages. Fine. But, compared with 2005, the volume is still up 22.8 per cent.
“Current mid-year transaction volumes and prices for Canada’s commercial real estate market reflect healthy, more normal and sustainable numbers when compared to the same period last year. There is indication in the numbers that the market has rebounded from the recession,” said John O’Bryan, vice-chairman of CB Richard Ellis. “As the second half of the year typically shows stronger activity than the first, the commercial real estate market is poised to finish on strong and stable footing.”
Wowzers for Toronto. Toronto lead the charge with commercial activity, with $2.9 billion in transaction volume and 563 deals.