Avison Young CEO: Canadian Commercial RE Boom At An End
As reported in Bloomberg Business, Toronto-based Avison Young’s CEO Mark E. Rose doesn’t see the global boom in commercial real estate continuing in Canada. The indicators include rising vacancy rates in offices matched with new construction of 20 million sq. ft coming online across the country. Added to this is the recent move by the US Federal Reserve to raise borrowing costs plus the expectation that 2Q 2016 will see another hike by the central bank.
“We’re at a peak. I don’t think we’re getting any higher,” Mark E. Rose, chief executive officer of Toronto-based Avison Young, said in a phone interview. “The next step is down — it has to be,” Rose is quoted.
Bloomberg’s Katia Dmitreieva explains what’s behind the recent report and why the warning bells are sounding. Watch the video below: