In news from Canada, the real estate market there saw a 48 percent increase in commercial investment volume in 2010, to the tune of $18.9 billion. The increase was sparked by a stronger economy and “surging investor confidence,” according to CB Richard Ellis. Toronto ended 2010 with $7.4 billion in trades, up almost 4 billion, from $3.8 billion in 2009, according to the 2010 National Investment Report released yesterday by the CBRE.
As a whole, Canadian commercial Real Estate transaction volumes in 2010 increased from $12.7 billion in 2009, to $18.9 billion in 2010. This is anything but if not an indicator that Real Estate is trending upward, approaching the pre-recession 2005 levels when the commercial transaction volume traded in Canada peaked at $19.8 billion. Further proof, by year-end, the number of commercial transactions reached 4,589, compared to 3,872 completed in 2009.
Looking deeper into the commercial Real Estate numbers in Canada, we see that in Calgary during 2010, 332 Real Estate transactions took place, totaling approximately $1.6 billion in transaction volume. About a $200 million increase from 2009. Edmonton’s commercial Real Estate market recorded 339 transactions for the calendar year 2009, totaling $2 billion.
"We were all amazed at the rapid return to optimism in 2010," said Greg Kwong, Executive vice-president and regional managing director for Alberta for CBRE, in Calgary. "That optimism showed itself in renewed investor confidence, the higher amount of capital put into play, and rising prices. We are not back to the lofty heights of 2007, but it is encouraging to see liquidity return to the market. We expect 2011 will maintain the momentum that we saw in 2010."
The Canadian commercial Real Estate market has already shown in the start of 2011 that its primed to continue trending upward. A general trend is emerging that companies and investors notice there is good inventory on the market, along with low interest rates, and they are locking in long-term deals that some analyst predict could be extremely fruitful.