An assessment from Morguard shows that the office sector has led investment in the third quarter with more than $1 billion in sales. There has also been brisk activity in the multi-suite residential, industrial and retail property sectors.
"Investors are continuing to exhibit confidence in Canadian commercial real estate, with projected sales for 2017 surpassing 2016 levels," said Keith Reading, Director of Research at Morguard. "With several significant transactions during the third quarter and a number of high-profile, high-interest properties expected to sell before the end of the year, we are looking at a record year for real estate investment in this country."
He added that downtown centres have shown strong performance and with supply outstripping demand, there has been greater interest in surrounding areas, especially in the GTA and Greater Vancouver.
"With rate hikes showing the desired cooling effect on housing markets, the Bank of Canada is expected to take a more patient approach to interest rates in the near future," said Reading. "The continued and abundant access to low-cost debt and equity capital will power commercial real estate investment into 2018."