What does Cushman & Wakefield president Scott Chandler think about fears that our market is overheating?
When looking at the bounty of new office towers, malls, and mixed-use communities rising in major markets, have we reached a peak? Scott tells us he remains positive, and points to a series of factors.
“I wish the recovery was stronger, but it is taking hold south of the border,” Scott tells us. The positives: Exports will help offset slowdown in retail spending and housing construction. And new office supply—it will impact vacancy and rental rates but will not collapse, especially when looking at strong levels of pre-leasing commitment. Pictured: groundbreaking at Vancouver’s Exchange Tower in January. (One shovel refuses to conform to height standards.)
Scott also points to interest rates, expected to remain low “in a historical context.” On the investment side, REITs remain attractive overall, and pension funds/advisors are operating with restrained debt levels and ample capital. “This is not 1991-1992 all over again,” Scott says. (We were so close to taking our neon leggings out of storage.) Prime assets across the country remain relatively scarce “and are viewed as long-term investment holds.” Pictured: Toronto’s bustling South Core.
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