Transwestern and Devencore teamed to solicit insight from their commercial real estate advisory teams across 43 North American offices. Here’s what brokers had to say about what’s in store for 2020.
The Canadian commercial real estate market is expected to perform well in 2020, as economic conditions remain healthy and job growth is steady. Except for Alberta, the major Canadian provinces like Ontario, British Columbia and Quebec all showed robust conditions. Similar to the United States, the industrial sector continued to outperform with tight market conditions and healthy expectations in 2020.
Gingerly expansion is expected in 2020, driven by medical office and industrial while the office market nears flatter conditions. Although the office sector should remain relatively steady, political turmoil and the elevated construction pipeline in select markets give respondents pause. Medical office could help boost the overall office market, while select practitioners opt to lease space in traditional office buildings. Respondents expressed concern relating to rising build-out costs, coupled with changes in regulations which could further impact how medical tenants utilize space. And it is no surprise that respondents anticipate industrial to continue outperforming due to tight market conditions and healthy expectations for e-commerce activity.