Commercial Real Estate

Commercial Real Estate - New Trends

The Canadian Commercial Real Estate (CRE) Market is slowly recovering from the setbacks suffered during the pandemic in 2020 and 2021.  Despite suffering setbacks during the pandemic, the commercial real estate industry has a positive outlook heading into 2022. Although there were some surprises and overly negative forecasts surrounding retail and office commercial real estate markets, industrial continues to perform well. Overall, the future of multifamily looks bright, with a couple notable exceptions. With a seemingly bright 2022 outlook, we analyze the current industry trends for all types of Commercial Real Estate along with the future opportunities and challenges for the investors, landlords, and occupiers.

Here are few Commercial Real Estate trends of recent times in Canada -

  1. Retail

While there is no denying of change in the demand patterns because of e-commerce, people still like to visit brick-and-mortar retail. The customer traffic across different shopping centers is returning to the pre-pandemic levels. Combined with a mounting urge to spend, the requirement for retail space picking up.

  1. Hospitality

While e-commerce has impacted brick-and-mortar retail, its effects may have been overblown. People still want to eat at restaurants, get haircuts and purchase other in-person goods and services. This industry is showing signs of major improvement due to factors like high vaccination rates, reopening of borders, and increased mobility. CBD markets that were once densely populated are also recovering. In fact, we might see a period of boom this year, owing to the return of corporate travels, business meetings, and holiday

  1. Offices

The future of offices is still largely unknown. Across industries, however, employers are embracing hybrid work. Hybrid work culture, long-term return-to-work strategies, and flexible working conditions are all set to strengthen the tenant demand. We are already witnessing increased office supply, rising office take-ups, and declining vacancy levels. So, be prepared for a healthy bounce back in the office leasing activity together with stabilizing rentals.

  1. Industrial and Logistics

With strong underlying trends for warehousing space from third-party logistic firms, the industrial market is predicted to receive a much-needed boost. Furthermore, huge, expected capital inflows, government stimulus in the infrastructure sector, and technology upgradation are predicted to further the positive outlook.

  1. Multifamily

Multifamily and retail real estate markets have largely recovered from the early days of the pandemic. There is an environment of rebalancing in this asset class. The fundamental shift in demographics resulting from work from home models can provide extraordinary returns. On top of that, international migration and a significant shift in lifestyle choices will tip the market in favors of investors. The regional, less explored areas will also come into focus in addition to the prestige areas.

  1. Upgraded Rental Units

The increasingly high cost of single-family homes combined with renters spending more time at home has translated to demand for larger, higher-end units. For example, some renters are upgrading from a one-bedroom to a two-bedroom to ensure they have a place to work.

The year ahead looks positive, with retail and multifamily asset classes rebounding and industrial continuing to thrive. Commercial real estate has also found innovative ways to increase the affordable and workforce housing supply. The public and private sectors must work together to prioritize infrastructure to help the economy grow.  The Commercial Real Estate is changing for the better, making it the most preferred investment option. To capitalize on the golden opportunities that are in front of you, we suggest you to re-weight your portfolio with the assistance of an expert.

Our team at Love Dhaliwal offers you a holistic service to Buy, Sell, Rent or Lease commercial property in Canada. We can help you earn huge returns for years to come. For more insights, contact us today!