Canadian Real Estate Sentiment Survey – Q2 2022
REALPAC and Ferguson Partners are pleased to announce the results from the Q2 2022 Canadian Real Estate Sentiment Survey.
The survey is the industry’s most comprehensive measure of senior executives’ confidence in the Canadian commercial real estate industry. This quarter, the survey captured the thoughts of a wide variety of industry leaders, including CEOs, presidents, board members, and other executives from a broad set of industry sectors, including owners and asset managers, financial services providers, and operators and related service providers.
Topline findings include:
- We are in a transitioning environment. Most of us are trying to figure out what the world looks like post pandemic.
- Geopolitically, we are in a changed world. Governments are removing the stimulus they have been pumping into the economy since 2010. All of this will lead to higher inflation, higher interest rates and lower growth as compared to the prior decade.
- With rising interest rates, inflation growth, price shocks, COVID-19 lingering and a war in Europe, Canada continues to be a very stable and desirable place to allocate capital. We have a very good story evidenced by the talent inflow to our country. Canada is a highly sophisticated, well-capitalized and institutionalized market.
- The overall situation is optimistic, not as optimistic as it was five months ago, but still optimistic. There is still capital waiting to be deployed in real estate and the reopening of society is helping the office and retail sectors. However, investors are more tempered, because of rising interest rates and inflation, which are impacting development pro formas and the economy overall.
- Income properties continue to be very strong. Both institutional and private investors like the certainty of bricks and mortar.
- Both debt and equity capital will continue to be available for the best borrowers and solid performers. There continues to be a flight to quality on best in-class real estate, managers and partners with strong track records