The first half of 2018 saw a new record high for investment in industrial real estate in Canada.
Morguard Corporation says that sales of industrial assets in Canada's major markets reached a record $6.1 billion in the second quarter as a healthy economy, strong leasing fundamentals, and a modest development cycle contributed to the strength of the asset class.
"Sales volume for the industrial real estate market already stands at a twenty-year high with half a year still to go," said Keith Reading, Director of Research at Morguard. "With quality space at a premium across much of the country and a solid fundamental outlook for the sector, we expect to continue seeing strong activity to finish the year."
Investors were also buoyed by the USMCA trade agreement which was making investors cautious.
"The announcement of the trade agreement, and the nature of the details emerging, has eased some of the uncertainty for investors," said Reading.
Morguard says that it expects Canada’s economy to grow by approximately 2.0% over 2018-2019 which should continue to support the strength of Canada’s commercial real estate market.
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