Commercial Housing Market is Still Full of Opportunity

Vancouver, Toronto, Calgary

2022/12/08

Cap rates will need to rise or bond yields will need to fall in order for some deals to make sense for investors. On the commercial side, valuations and vacancies in office buildings will depend on the qualities of particular buildings. Also, whether they meet the needs of workers returning after two years of lockdowns will matter. Long-term, commercial Real Estate fundamentals in Canada will remain strong. In the short term, stressed opportunities will emerge in the marketplace. For underleveraged investors, 2023 will be the time to execute on what will be a limited point in time to pick up 50-100 bps of value.