I think that Canada has a leg up on other countries, but the themes are still the same. If you are a well-situated asset that has high-grade finishes and that has thought about its impact on social value and the environment, you stand a better chance of drawing current demand. And those buildings are driving costs.
A person talks on a phone standing beside a sign advertising commercial real estate for lease in Toronto.How are high inflation and rising interest rates affecting different types of real estate investments, such as office, industrial and residential? Are some subsectors better positioned to weather the storm?and inflation doing? Well, those two are affecting everything. Then you have to ask from province to province, city to city, what’s going on with what product type.
What all of us are looking forward to is the day that the Canadian central bank, the U.S. central bank, the U.K., the European and Asian central banks all say no more interest rate increases. At that point, it’s a matter of math — and everybody can underwrite assets. It’s at that point where velocity comes back. It’s at that point where the smartest investors who’ve been doing their homework can come in and take advantage of the discrepancy on pricing.