CRE Sees Strong Growth in 2021, “Asymmetric Impacts” Across Asset Classes

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CRE Sees Strong Growth in 2021, “Asymmetric Impacts” Across Asset Classes
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While still lagging below pre-pandemic levels, Canada's commercial real estate sector has seen strong growth over the past year, across all asset classes. altusgroup NAIOP

to examine the economic benefits of commercial construction across commercial real estate in 2021.

“The total value of commercial real estate transactions increased substantially in 2021 from very poor conditions in 2020. Industrial real estate accounted for the largest share of the investment value of those transactions. Commercial brokerage fees rose modestly in 2021, reflecting the recovery in transactions. Property management, asset management and landlord operations combined represent the largest single component of economic activity within the CRE sector.

The report goes on to say that growth in the country’s multi-family sector is expected to continue in tandem with rental demand. Although investments in the office sector have risen since 2018, the report forecasts that the growth will likely taper off in the next few years as “post-pandemic trends may decrease the need for new office space at the same time as many office users find that adapting their spaces to emerging new working realities requires capital investment.”

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