Some of Canada's Top CRE Execs Examine Industry Trends

Some of Canada’s Top CRE Execs Examine Industry Trends

Industrial and office portfolios

While Diamond said the rapid industrial rent escalations of the past five years weren’t sustainable, the sector still offers good margins. He doesn’t believe there will be a major slowdown with the asset class.

Developers can still profitably build industrial facilities as long as their land costs are reasonable, according to Diamond.

More employees have returned to offices in Asia and Europe than in Canada and the United States and, while Canada is going through a period of adjustment with hybrid work models and some people working from home at least a few days a week, Welch believes that offices still have a major role to play in society.

Diamond said Choice itself uses a hybrid model. He said its offices are 80 to 90 per cent full from Monday to Thursday, but that number drops down to 20 per cent on Friday.

RioCan has a mandatory three-days-per-week in the office policy for its over 600 employees, and Gitlin said it’s working reasonably well.

He feels real estate companies should be leaders in office attendance, however, since their business is based on getting people into buildings.

Source Renx.ca. Click here to read a full story

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