Canada 2013: No building, high prices
Stability and opportunity will drive Canada’s commercial real estate markets in 2013, according to Avison Young’s 2013 Canada, U.S. Forecast report.
The report says North American real estate markets still offer stability providing a healthy balance of risk and opportunity, despite a world of financial uncertainty, stemming from instability in Europe, a potential slowdown in China, the debt ceiling and new “fiscal cliffs” in the United States and potential “plateau-ing” in Canada.
In Canada, the shortage of product, very low current vacancy rates and the strong Canadian dollar, when combined with pervasive condo overbuilding, are resulting in the question, “Are we at the top?” according to the report. The report also states that the lack of new development is giving confidence to investors interested in acquiring value-added and