There has been a turnaround
in the fortunes of Canada's commercial real estate market, with it enjoying the strongest performance in three years, the REALpac/IPD Canada Annual Property Index has revealed.
According to the measure, the annual return experienced by investors in the market was 11.1 per cent, compared to 2009's negative return of 0.3 per cent and 3.7 per cent in 2008.
"A rebound in property values was entirely responsible for boosting the total return back into double digit territory in 2010," said Simon Fairchild, managing director of IPD North America. "The return to capital growth last year follows two consecutive years of write-downs worth 9.3 per cent at the all property level."
All four major sectors measured by the index enjoyed stronger returns and capital growth, with retail the best-performing for the second consecutive year, with increases of 15.6 per cent. This was followed by industrial (8.8 per cent), offices (8.5 per cent) and finally residential (7.6 per cent).
- Saturday 26 February 2011