There was $19 billion of investment, up $4.3 billion compared to the first half of 2016; the whole of last year saw a record $28.4 billion. Offices and retail accounted for a combined $10 billion (55%) of the investment in the first half of 2017.
"With record amounts of capital still seeking a home, investors continue to find ways to buy into Canada's finite investable commercial real estate sector," notes Bill Argeropoulos, Principal and Practice Leader, Research (Canada) for Avison Young. "Capital from domestic and foreign investors continues to be largely directed towards Vancouver and Toronto, while the other major markets are also seeing their share of activity."
Investment in Vancouver surged 75% to $7.8 billion, 41% of Canada’s total; beating Toronto’s $6.5 billion (34% share). Calgary, Edmonton and Montreal all recorded increases year-over-year, and each exceeded the $1-billion mark.
Ottawa was the laggard with a decrease in investment activity of 57% in the first half of 2017 compared to a year earlier.
More market update:
The first half of 2017 saw a 29% increase in investment in Canada’s commercial real estate sector, a new survey from Avison Young reveals.