CRE industry conditions and sentiment survey - Canada Q1 2024 results
Gain insights into the market sentiment, conditions, metrics, and issues affecting the Canada commercial real estate industry based on our Q1 2024 survey.
Canadian Survey Results
Key findings
Reported gross IRRs
Targeted gross IRRs seen marketed for new funds and deals declined modestly across all four main industrial, multi-family, retail and office.
Capital availability
Canadian survey respondents expect debt funds and banks to have the greatest amount of capital availability over the next year, a stark contrast to those of the US.
Priority issues
Cost of capital, development costs, and inflation remain top priorities, while concerns about operating costs and tenant retention have also increased.
ESG considerations
The majority of Canadian respondents (63.2%) believe ESG needs “investor or market demand” for it to be widely considered by the CRE industry.