As borrowing and construction costs rise, builders are rethinking projects as 2022 comes to a close.
Rental rates are rising in both the Industrial and
market segments as low levels of vacancy strengthen the leverage of Landlords across the market. Capitalization rates have generally remained steady, although some positive pressures are being witnessed.
Retail markets are generally appearing stable, with strong demand for new buildings in high profile locations, and some evidence emerging of increases in capitalization rates.
Office space continues to move as expected. Older developments are suffering from increases operating costs, while new developments are generally in higher demand by tenants and investors alike as high efficiency buildings reduce the pain of operating expenses, and allow for high-density transition and flex working environments as hybrid work models become the norm.
Please let me know if there’s any questions we can help you answer around real estate in western Canada.