Strong expectations for Canadian commercial property: RICS

The report expects improved capital value and rental figures in Canada. But an improving commercial real estate market can be expected in most of the world, as well, said RICS.

“Sentiment seems to be improving across much of the global commercial market,” said Simon Rubinsohn, RICS’ chief economist.

He said moves by banks in Asia, Latin America and Europe to raise interest rates have headed off concerns over another price bubble. Even so, those three global regions will see the strongest gains in capital values in commercial property over the course of 2011, Rubinsohn said.

The report highlighted that in Canada, the recovery process is more advanced than in the U.S.

“Capital value expectations moved further into positive territory, helped by a sharp jump in investment demand,” said the RICS report.

The improvement was especially significant in the fourth quarter, said the report, noting the availability of rental stock fell for the first time since the first quarter of 2008.

The RICS report comes in the same week that CB Richard Ellis reported commercial real estate investment volume rose 48% in 2010 in Canada to $18.9 billion, compared to $12.7 billion in 2009.

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