February 28, 2023
Keeping up with the ever-changing real estate market is no easy feat, and although the residential market tends to take the lion’s share of headlines, the commercial market is currently undergoing significant shifts that will have major implications for the rest of 2023.
One of the biggest trends that’s become evident in the commercial real estate space this year, Conrad says, is discrepancy and uncertainty around pricing. More specifically — and not too surprisingly — owners are often wanting more than buyers or tenants are willing to pay. These differences appear most prevalent on the sales side, Conrad says, but do exist in leasing as well.
“Discovering the true value of real estate is taking longer,” Conrad explains. “I think that’s indicative of a lot of things in 2022: the mix of interest rate increases; high levels of inflation; uncertainty in the geopolitical environment in the world, causing everybody to take a step back.”
Of course, within the sphere of commercial real estate, various segments are performing in drastically different ways. Industrial properties continue to be “the belle of the ball,” Conrad says, with near-zero vacancy rates in Toronto and Vancouver keeping competition and pricing healthy.
