Continuing concern over Canadian commercial real estate market prosperity

TORONTO, Nov. 10, 2014 /CNW/ - Ongoing concern regarding the sustainability of the Canadian commercial real estate market's prosperity is reflected in the fourth quarter results of the Canadian Real Estate Sentiment Survey released today by the Real Property Association of Canada (REALpac) and FPL Advisory Group. The quarterly survey measures the current and future outlook of Canada's top commercial real estate executives regarding overall real estate conditions, real estate asset values, and availability of capital.

Topline findings include the following:

• While many are optimistic about the prospects of continued economic recovery within the United States, international conditions elsewhere dim the go-forward outlook.
• There are mixed views as to whether cap rates can continue to compress; some respondents believe any interest rate increases will be offset by strong institutional demand for real estate.
• Debt availability continues on, fueled by a low cost of capital; at the same time, some note the conservative nature of Canadian lenders and how that may play into the future.
• Equity availability is strong, reflected by investor demand and allocation preferences for real estate.

The REALpac/FPL Canadian Real Estate Sentiment Survey is the industry's most comprehensive measure of senior executives' confidence in the Canadian commercial real estate industry. This quarterly survey of CEOs, presidents, board members and other executives connected to the real estate industry measured executives' current and future outlook on three topics: overall real estate conditions; access to capital markets, and; real estate asset pricing. Survey respondents represent the retail, office, industrial, hotel, multi-family, residential, and seniors residential asset classes.

To download a copy of the Canadian Real Estate Sentiment Survey, go to www.realpac.ca > Publications > Canadian Real Estate Sentiment Survey (http://www.realpac.ca/?page=CanadianRealEstateSS).

About REALpac
REALpac is Canada's most senior, influential and informative voice in the real property investment industry. REALpac brings together the industry's Chief Executives to collectively influence public policy, to educate government and the public, to ensure stable and beneficial real estate property and capital markets and to promote the performance of the real property sector in Canada. Member companies include publicly traded real estate companies, real estate investment trusts (REITs), private companies, pension funds, banks and life insurance companies with investment real estate assets each in excess of $100 million, large owner/occupiers and pension fund advisers as well as individually selected investment dealers and real estate brokerages. The commercial real estate sector makes a substantial contribution to the Canadian economy, generating $63.3 billion in economic activity in 2011. Collectively, REALpac members currently own in excess of $200 Billion CAD in real estate assets located in the major centres across Canada. Visit us at realpac.ca.

SOURCE: Real Property Association of Canada

Carolyn Lane, VP, Communications, [email protected].