According to CBRE, Canada’s commercial real estate market had its best showing ever in the first half of 2012. Sales transactions reached $13.9 billion which is a 23.4 per cent increase from the same period last year.
The report by the commercial real estate services firm also notes that this is higher than the first six months of 2007 “when Canada’s commercial real estate market went on to record its best 12 month period ever with $32.1 billion in trades.”
Usually, the back half of the year is busier than the front half, but a number of large deals which took place in the first six months of 2012 mean that this year is likely to be more balanced. It is expected that full year investment volume will reach $28.0 billion.
“It is quite rare to have all the ducks lined up in a row like we have now, but we have active investors, active lenders and very solid leasing fundamentals that have gone on to produce one of the strongest markets I’ve ever seen in my career,” John O’Bryan, Vice Chairman of CBRE Canada explained.
He went on to say that “there are always risks and concerns, and we have an abundance including the ongoing debt crisis in Europe, but the view shared by many investors is Canadian commercial real estate is something they want to hold and they are prepared to pay up for an asset that promises to offer a steady cash flow.”