Canadian commercial real estate may see post-COVID-19 economic upswing: report – National

Canadian commercial real estate is pointing to post-pandemic economic recovery, according to CBRE.

The commercial real estate company says the rise in office vacancies slowed in all major Canadian cities in the second quarter and industrial demand picked up.

Downtown office rentals in major cities rose by the lowest amount since the pandemic began last year, with office tenants preparing to welcome employees back in the second half of the year.

Continue reading:

Millennials vs. Baby Boomers: Why the Cost of Living for Young Canadians has skyrocketed

According to CBRE, Canada has the four densest office markets in downtown North America with vacancies of 6.6 percent in Vancouver, 10 percent in Toronto, 10.6 percent in Ottawa and 11.1 percent in Montreal.

Halifax office vacancies declined to 19.7 percent in the downtown area and 13 percent in the suburbs, a possible sign of a return to normal as the company reopens.

The story continues under the advertisement

Subletting, which flooded the market during the pandemic, is now in demand as some companies are taking the space off the market in order to reoccupy the offices.

According to the company, nearly 90,000 square feet of office space previously earmarked for sublet was canceled or rented in downtown cores in the second quarter, half of it in Toronto.

Trend stories

• 

  29% of Canadians have broken COVID-19 restrictions and many felt entitled to do so: survey

• 

  Fully vaccinated against COVID-19? Canada reveals new guidelines on what you can and can’t do

2:53Open House: Offer war videos

Open House: War Video Bidding – May 15, 2021

“Sublease listings can be knee-jerk reactions to a sudden market correction. The fact that subleases are being terminated or leased for new business is a very good sign and this is just the beginning of the trend, ”said Paul Morassutti, Vice Chairman of CBRE Canada.

“Canada’s large office markets have performed well compared to our global counterparts over the past year and we can assume that momentum will continue to pick up as the lockdowns are eased.”

The story continues under the advertisement

Demand for prime industrial real estate is high, with the Waterloo region having the lowest industrial availability rate in North America at 0.9 percent.

All markets outside the prairies have availability rates of three percent or less, with Toronto, Vancouver, and Montreal being 1.2, 1.1, and 1.4 percent, respectively.

Continue reading:

Will the housing market collapse? Why House Prices Can Stay Hot

Rising land and construction costs limit opportunities for industrial companies.

Rental or retail space declined 35 percent in the quarter in Vancouver, 28 percent in Montreal and 25 percent in Toronto. Calgary rates fell 1.2 percent while Edmonton rates fell 0.7 percent.

“The level of industrial demand is unprecedented and is now reaching very real limits,” added Morassutti.

“We don’t have enough space to meet business demand and we can’t build new space fast enough.”

© 2021 The Canadian Press