Following a record-breaking second quarter, the new record surpassed it by 13 per cent and total investment for the year-to-end of Q3 totalled $27.4 billion, the third highest behind 2012 and 2007.
“Appetite for Canadian commercial real estate continues to grow stronger on an almost daily basis. We are in a global low growth environment that is expected to endure for several years and Canadian commercial real estate assets offer investors solid returns in a yield-starved world. Government bond yields are at all-time lows and the stock market is trading on historically high price-earnings ratios which is driving interest into hard assets such as real estate,” commented Peter Senst, President of CBRE Canada Capital Markets.
'Foreign investment was a significant driver of the growth at 41 per cent of all deals in the year to the end of the third quarter.
“In a world where political uncertainty is growing, Canada, with its stable real estate market in a country that protects property rights, is about as a safe a bet as there is,” added Senst.
Calgary and Edmonton saw the strongest growth in the market, rising 146 per cent and 55 per cent respectively; while Toronto and Vancouver remained strong.
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There were $11.2 billion worth of investments in Canada’s commercial real estate in the third quarter, setting a new record.