COLLIERS INTERNATIONAL
Canada ’ s commercial real estate sector looks to be performing strongly . Indeed , according to Colliers Internationals ’ Canadian Office and Industrial Markets Q1 2017 report , Vancouver in particular appears to be a commercial hub gathering momentum . The British Columbia heartland has the most office construction underway out of any Canadian city .
The report also points towards solid demand for industrial space , with 1.2mn square feet ( sq ft ) of space absorption in the first quarter of this year . The signs are positive , and points towards Canada as a stable place to do business .
According to Jean-Marc Dubé , SIOR Senior Vice-President at Colliers International , based in Montreal , one should look back at the way Canada weathered the global financial crisis . “ Canada came through better than most partly because we are systemically conservative ! Our banking system is set up in such a way that is harder for individuals and businesses to over-leverage and our regulatory framework did not allow a subprime bubble to develop .” It is hardly surprising that the Bank of England looked to a Canadian banker when looking for a governor to steer it though troubled times .
Economic ups and downs Perhaps the biggest challenge for the economy in general has been the drop in oil prices and the manufacturing downturn , Dubé suggests . “ That impacted our business significantly in the west of the country . At $ 120 a barrel , all of our offices were strong , especially in Alberta . We were seeing unprecedented office deals done in Calgary and Edmonton . Then when the oil price crashed and interest rates fell back , these were the areas where business slowed the most .”
That is all in the past , and Alberta is now doing well . The major office markets in Canada , Vancouver , Calgary , Edmonton , Toronto , Ottawa , and Montreal , equate to 476mn sq ft of inventory – 89 % of the entire country . In the past , Montreal , just 500 km from Toronto ,
108 October 2017