By Brian Kriter, Senior Managing Director and head of V&A Canada
Values across all major asset classes in Toronto have surpassed the peak of 2007 by more than 10 percent and continue to rise. The appetite for trophy office buildings across Canada is very strong from both domestic and foreign buyers. There are a few significant CBD office buildings in Canada that are currently being marketed, and we expect the bids to come in around a 4 percent cap rate and possibly even sub 4 percent for certain assets.
Here are a few more highlights as we enter 2016:
- U.S. national office vacancy rate has fallen to its lowest level in seven years
- New York is the #1 market in the world for Canadian Institutional Investors looking to place capital outside of Canada
- In Canada, strong demand for modern industrial real estate will continue, and we’re seeing a bifurcated market in retail. Top of the market is getting stronger and challenged retail assets that are not well located will continue to struggle.
Brian Kriter, Senior Managing Director, Valuation & Advisory Canada
Brian has been with Cushman & Wakefield since 2004. He is responsible for running our Canadian Valuation & Advisory service line of 60+ professionals. In 2014, the group appraised 2,700+ properties valued at over 49 billion USD.