Rental market supply constraints continue to impede progress in most jurisdictions
Canadian Economic Outlook & Market Fundamentals
Third Quarter Update 2018
MISSISSAUGA, ON, Oct. 25, 2018 /CNW/ – Investment sales activity in the industrial sector continued its robust pace into the third quarter, according to the latest Research Report issued by Morguard Corporation (“Morguard”) (TSX: MRC).
“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.”
Sales numbers for industrial assets in Canada’s major markets reached a record $6.1 billion in the second quarter. A healthy economic outlook, strong leasing fundamentals and a modest development cycle contributed to the ongoing strength of the asset class and a very positive near-term outlook. Overall, quarter-over-quarter transaction volume increased across all commercial real estate asset classes, reflecting investor confidence in the market.
The recently announced U.S. â Mexico â Canada (USMCA) trade agreement has also raised investor’s spirits to some degree. The overhanging threat of a trade war had significantly dampened the Canadian equity market’s year to date performance.
“The announcement of the trade agreement, and the nature of the details emerging, has eased some of the uncertainty for investors,” said Reading.
On the economic front, Canada’s economy is expected to grow at a fairly solid rate through the balance of 2018 and 2019. Output is forecast to increase by approximately 2.0% annually over this period. This rate of expansion bodes well for Canadian commercial real estate, and should continue to support investment sales activity and boost real estate sector performance.
The Third Quarter Update of the 2018 Economic Outlook and Market Fundamentals Research Report, released today by Morguard, provides a detailed analysis of the 2018 real estate investment trends to watch in Canada. The full report is available at www.morguard.com.
About Morguard Corporation
Morguard Corporation is a major North American real estate company. It has extensive retail, office, industrial, multiâsuite residential, and hotel holdings owned directly, or through its investment in Morguard REIT (TSX: MRT.UN), Morguard North American Residential REIT (TSX: MRG.UN) and Temple Hotels Inc. (TSX:TPH). Morguard also provides real estate management services to institutional and other investors.
Forward Looking Statement Disclaimer
Statements contained herein that are not based on historical or current fact, including without limitation statements containing the words “anticipates,” “believes,” “may,” “continue,” “estimate,” “expects” and “will” and words of similar expression, constitute “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions, both nationally and regionally; changes in business strategy; financing risk; existing governmental regulations and changes in, or the failure to comply with, governmental regulations; liability and other claims asserted; and other factors. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Publisher does not assume the obligation to update or revise any forward-looking statements.
SOURCE Morguard Corporation
View original content: http://www.newswire.ca/en/releases/archive/October2018/25/c6203.html