How Canada's Commercial Real Estate Markets Will Play Out In 2024

How Canada’s Commercial Real Estate Markets Will Play Out In 2024

January 22, 2024

Howard Chai, Storeys – The multi-family market is more sensitive to government policy, multiple people interviewed for this article note, so activity can vary from market to market. It’s unclear how much of an impact the federal government’s decision to eliminate GST on new rental construction will really have, says Cory Wright, Managing Director of Vancouver-based William Wright Commercial, as local development costs — DCCs, CACs — will likely eat away at those savings.

“But there’s record immigration, it takes forever to build stuff, demand is going to continue to grow, and I think multi-family will be a leader as an asset in the commercial real estate realm,” adds Wright. “Obviously prices have come off, but I think you’re seeing a lot more activity now [as of December] in land transactions than what we were seeing even five months ago.”

“Companies, and institutions, and REITs, they’re looking more for stability than relief, if that makes sense. Stability being ‘We’ve peaked on rates, if I have to approve my cap stack to get the property at maybe a slight discount and I can make these numbers work, we’re going in.’ Because last time I checked, there isn’t any more land, and that’s why I think you’re going to have demand continue to swell in 2024 and 2025.”

Read the full article published by Storeys.

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