RE/MAX Canada Says Demand For Industrial, Multi-Unit Residential And Farmland Was Unprecedented In The First Quarter Of 2022

Jun 2,2022 1 Comment By The Lilly Commercial Team

Stock markets might be tumbling and housing markets cooling, but this volatility is driving interest in Canadian commercial real estate as investors look for a hedge against inflation, a new report by a major broker says this morning.

RE/MAX Canada says demand for industrial, multi-unit residential and farmland was unprecedented in the first quarter of 2022. Values hit record levels and even retail and office space, devastated by the pandemic, are beginning to show signs of growth.

Eleven out of the 12 major markets studied reported extremely tight market conditions for industrial real estate in the first quarter.

So tight that realtors are recommending tenants start looking for new premises at least 18 months before their leases come up in eight of those markets — Vancouver, Edmonton, Calgary, Winnipeg, Ottawa, the Greater Toronto Area, Hamilton-Burlington-Niagara and London.

“The overall strength of the Canadian economy continues to propel massive expansion in commercial markets across the country in 2022,” said Christopher Alexander, president of RE/MAX Canada.

“What began as heightened demand for industrial space to accommodate a growing e-commerce platform during the pandemic has blossomed into a full-blown distribution and logistics network that encompasses millions of square feet in markets across the country. Recent volatility in the stock markets has also prompted a shift to greater investment in the commercial segment as investors look to real estate as a hedge against inflation.”

Larger portfolios of 10 properties or more are attracting the most interest from institutional and private investors, said RE/MAX.

Businesses are finding it challenging to expand because of land constraints and shortages, especially in Vancouver, the GTA and Regina, and this is leading to creative solutions, says the report.

In Metro Vancouver, the first multi-storey industrial/commercial space is nearing completion and has been leased to Amazon. A second such development planned for False Creek Flats has already sold out its first and second phase and a third phase is selling at $725 per square foot, said the broker.

Farmland is another hot commodity as inventories shrink and prices per acre rise. In Saskatoon, where 300 grain farms up for sale is typical at this time of year, available properties have dropped to 90.

“The soaring price of commodities has bolstered Western Canadian markets, with resource-rich provinces such as Saskatchewan, Alberta, and Manitoba experiencing unprecedented growth as industries emerge from their slumber,” said Elton Ash, executive vice-president, RE/MAX Canada.

“Saskatchewan, in particular, is reinvigorated, with the economic engine just heating up in agriculture, mining, forestry, and potash.”

Retail is on the rebound in 75% of the markets studied, said RE/MAX, a trend it expects will strengthen as society moves beyond pandemic constraints.

Interesting side note on retail: the broker has noticed a high concentration of cannabis outlets in major city centres (who hasn’t?) and expects an influx of empty stores to come on the market over the next 12 to 18 months as that industry consolidates.

RE/MAX expects commercial real estate markets in Canada to remain strong, supported by population growth and economic expansion.

Despite all the uncertainty out there these days, RBC economists expect Canada’s GDP to climb 4.3% this year, led by B.C., Saskatchewan and Alberta.

Source Financial Post. Click here to read a full story

Comments

Dang k'y d nhn 100 USDT | May 4,2024
Reply

Thanks for sharing. I read many of your blog posts, cool, your blog is very good.

FOR SUBLEASE – Industrial Space – Ajax

Available area: 1,810 Sq Ft Lease rate: $15.50 Sq Ft Net + $5.65/2023/T.M.I. Rare Small Bay Industri ...

FOR LEASE – Office Spaces – Scarborough

Available units: #218 – 1,248 SF – $11.00 psf + $19.01 TMI psf #221 – 777 SF ̵ ...

FOR LEASE – Retail Space – Toronto

Available area: 595 SF Lease rate: $1,800.00 Net Lease Located in Toronto’s upscale Leaside ne ...

BUSINESS FOR SALE – Sports Equipment Shop – Peterborough

Available area: 783 Sq Ft Asking Price: $300,000.00 An exclusive business opportunity awaits in Pete ...

FOR LEASE – Office Space – Toronto

Available area: 1,124 SF Lease rate: $17.00 Net Lease Perfectly located near the 401 with easy trans ...

FOR LEASE – Office Space – Toronto

Available area: 755 SF Lease rate: $1,800 Gross Lease CLICK HERE TO DOWNLOAD THE BROCHURE Prime Scar ...

FOR LEASE – Office Space – Toronto

Available area: 638 SF Lease rate: $1,700 Gross Lease CLICK HERE TO DOWNLOAD THE BROCHURE Prime Sc ...

FOR LEASE – Office Space – Toronto

Lease price: $23.50 Sq Ft Net + $17.68/2023/T.M.I. Available area: 3,901 Sq Ft 1,820 Sq Ft Elevate y ...

Locations

RE/MAX Hallmark Realty Ltd., Brokerage
685 Sheppard Avenue East Suite 401, Toronto

Toronto

Riverdale Office

RE/MAX Hallmark Realty Ltd.

630 Danforth Ave
Toronto, ON M4K 1R3

Office: (416) 462-1888
Fax: (416) 462-3135