|Toronto Office Space|
With a slow recovery from the US economy
and Europe struggling to find its way out of the economic crisis, Canada
remains waiting to feel the effects, and opinions are divided between those
who are optimistic and those who believe the crisis is already here.
Let’s start by mentioning some numbers
released recently about the Canadian real estate market.
In 2012, most of the cities saw a decline
Toronto, which is one of the important
areas saw a decrease of 5%, Vancouver’s sales dropped 20% year over year,
Newfoundland went down 11%, but not everything was bad news.
Calgary saw an increase of 18.6% and the
Durham area increased nearly 12% year over year.
This leads us to the national average,
which went down 1.1%
While some experts have started talking
about a bubble which will destabilize Canada, others say that the market will
remain stable as purchasing activity is robust, and will continue for another
What will happen with the commercial
market? Experts say there will be some risk increase by the end of the year
especially in Toronto, Calgary and Vancouver, but during 2013 rental market
conditions will improve, and this is backed up by the construction volume.
According to Colliers, few changes are
expected as during the last quarter of 2012, office renting saw a high
absorption of spaces, especially in the downtown areas.
With new projects entering the market this
year, it’s probable that landlords will face stronger competition and may have
to reduce prices or increase the value they are offering to remain in this
The bank of Canada lowered its growth
forecast to 1% for 19th consecutive time and set at 2% the expansion
of the economy.
While experts debate on the future of the
economy, we prefer to be part of the ones that think positive. It’s understandable
a slowdown with the economic context the world is living, but we’re confident
it can be reverted during 2013.
While the year unfolds and we see answers
to these questions, OfficeList will always be ready to help those who need an workspace, we can always find your next office.
Labels: Canada Office market 2013, canada office news