2021 Commercial Real Estate Trends
1.2 min read
As we enter into a new year, there is much to be expected from the commercial real estate industry. 2020 brought upon us some unexpected roadblocks, as our way of life changed drastically throughout the country. With that came some apparent struggles in multiple areas within the real estate sector, as many businesses began to revaluate their current and future investments. Nonetheless, market trends for 2021 are representative of just that.
Industrial, retail and e-commerce trends are set to reach new heights, due to the rise in warehousing, distribution centre construction and lease rates. Bricks-and-mortar retail stores, on the other hand, have yet to see a clear path in sight, as continued restrictions and lockdowns seem to be going nowhere fast. As the country has seen high vacancy rates, the office sector will follow suit at 10.8% to date. There is no doubt that businesses are re-evaluating the need for ample office space, as working from home becomes the new norm.
According to an annual survey of real estate professionals conducted by PwC and the Urban Land Institute, 61.4 percent of survey respondents favoured buying moderate-income apartments, 48 percent preferred to buy single-family rentals, and 42 percent recommended lower-income rentals. As a result of COVID-19, Canada’s strong immigration cycle fell short, leading to increased vacancy rates.
Opportunity for a substantial market recovery is on the horizon, as investors and industry professionals alike see an increase in capital investment across all commercial real estate sectors in the months to come.
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