Canadian Commercial Real Estate Market Remains Strong and Stable

REALpac survey shows continued confidence in health of Canada's real estate markets

TORONTO, Nov. 12, 2012 /CNW/ - The Real Property Association of Canada (REALpac) and FPL Advisory Group are pleased to announce the results from the Fourth Quarter 2012 REALpac / FPL Canadian Real Estate Sentiment Survey. The survey is the industry's most comprehensive measure of senior executives' confidence in the Canadian commercial real estate industry.

Topline Findings

  • The Q4 Index saw little change from recent quarters; while the Canadian market is viewed as strong and stable, many still show concern over international economic conditions
  • Many express positivity in the overall market, while some look for a further U.S. recovery to spark additional activity; a lack of Class A product remains a primary issue
  • Cap rate compression and the low interest rate environment have led to very high asset pricing; many worry that an increase in interest rates could drive values down going forward
  • Debt availability remains strong, especially for low-risk assets; however, lenders are finding longer term loans increasingly less attractive
  • Equity capital is seen as widely available as both public and private investors continue to find real estate attractive

This quarter, the survey captured the thoughts of a wide variety of industry leaders, including CEOs, presidents, board members, and other executives from a broad set of industry sectors, including owners & asset managers, financial services providers, and operators & related service providers. The quarterly survey measures executives' current and future outlook on three topics: (1) overall real estate conditions, (2) access to capital markets, and (3) real estate asset pricing. Survey respondents represent the retail, office, industrial, hotel, multi-family, residential, and seniors residential asset classes.

To download a copy of the report, go to http://www.realpac.ca/?page=CanadianRealEstateSS.

About the Real Property Association of Canada

REALpac is Canada's premier industry association for investment real property leaders. Our mission is to collectively influence public policy, to educate government and the public, and to ensure stable and beneficial real estate capital and property markets in Canada.

REALpac members currently own in excess of $180 Billion CAD in real estate assets located in the major centres across Canada. Members include real estate investment trusts, publicly traded and large private companies, banks, brokerages, crown corporations, investment dealers, life companies, lenders, and pension funds. For more information, please visit us at www.realpac.ca.

About FPL Advisory Group

FPL Advisory Group (FPL) is a family of companies focused on providing highly specialized advisory services to the real estate and related operating and financial services industries. Through our complementary practice areas, we work with our clients to develop the right talent, leadership, structure, and strategies for success in today's intensely competitive marketplace.

FPL is comprised of two primary operating companies that work together to serve a common client base. Ferguson Partners provides executive, director, and professional search services.  FPL Associates provides a range of specialized consulting and finance-related services in the areas of compensation, management consulting, executive onboarding, and succession planning. The firm is headquartered in Chicago and maintains offices in London, New York, Boston, and Tokyo. For more information, please visit www.fpladvisorygroup.com.

SOURCE Real Property Association of Canada



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