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Record first half for Canadian commercial real estate market

Record first half for Canadian commercial real estate market

Calgary&#8217;s commercial real estate market has seen increased sales compared with last year.
 

Calgary’s commercial real estate market has seen increased sales compared with last year.

Photograph by: Stuart Gradon , Calgary Herald

CALGARY — Canada’s commercial real estate market put in its best showing ever in the first half of 2012 with sales transactions reaching $13.9 billion, according to a report by CBRE Limited.

And the Calgary market contributed nearly $2 billion to that total. As well, Calgary recorded three of the top 10 transactions in the country so far this year.

Nationally, the dollar volume is up 23.4 per cent from the same period last year and also outpaces the first six months of 2007, when Canada’s commercial real estate market went on to record its best 12-month period ever with $32.1 billion in trades, said CBRE.

In Calgary, the dollar volume is a 123.1 per cent hike from a year ago.

CBRE said the $1.3 billion sale of Scotia Plaza in downtown Toronto skewed the first half of 2012 numbers to the upside but “the underlying trend is still of robust activity and a further demonstration by a wide variety of real estate investors to increase their exposure to Canadian commercial real estate if and when opportunities arise.”

“It is quite rare to have all the ducks lined up in a row like we have now, but we have active investors, active lenders and very solid leasing fundamentals that have gone on to produce one of the strongest markets I’ve ever seen in my career,” said John O’Bryan, vice-chairman of CBRE Limited. “Equally impressive is the depth and breadth of market activity in every region of the country and is highlighted by every investor type eager to buy if they can.

“There are always risks and concerns, and we have an abundance including the ongoing debt crisis in Europe, but the view shared by many investors is Canadian commercial real estate is something they want to hold and they are prepared to pay up for an asset that promises to offer a steady cash flow.”

The CBRE report also noted that the number of Calgary deals in the first half of the year rose by 7.4 per cent to 160. Nationally, the number of deals at mid-year was down 2.5 per cent to 2,410.

After the Scotia Plaza sale, the second highest transaction in the country was of the Maestro Health Care Portfolio, in various markets, at $925.2 million. Calgary was third highest with the Calgary Place office property sale at $312 million. Seventh overall was the Calgary office property sale of Altius Centre at $179.75 million and 10th overall was the Calgary office Scotia Centre sale (50 per cent interest) for $140 million. The sale of Marlborough Mall in Calgary for $137 million was 11th overall.

mtoneguzzi@calgaryherald.com





Read more: http://www.calgaryherald.com/business/Record+first+half+Canadian+commercial+real+estate+market/7192743/story.html#ixzz25bsml2Wl