Sep 13, 2022
Despite a cautious market, the outlook for Canadian commercial real estate is positive, says Osler’s Bavia Bisetty, partner, Real Estate, in an interview with Canadian Lawyer.
“There is more attention being given to the long-term outlook and complexity,” says Bavia. “Some investors are finding that this requires prices and resources that they are not willing to consider in the current market, so they are just going to wait it out.”
The shortage of industrial space for land and stabilized assets continues to create market challenges, as does the significantly higher acquisition and construction costs. “Transactions are progressing, but letter of intent deal terms are taking longer to negotiate, and there is a general slowness in terms of how these discussions are moving along,” says Bavia.
She predicts foreign capital will continue to be attracted to Canada as geopolitical challenges shift the focus to more stable socioeconomic environments. “Real estate is a significant vehicle for that capital,” says Bavia.
Read the full article by author Lucy Saddleton in Canadian Lawyer posted on September 13, 2022