Prediction: 2014 Even Better
CBRE's 2014 outlook report, released this morning, has promising results for Vancouver. (But they won't say whether we'll win the lottery.)
Why the positive predcition? CBRE CEO Mark Renzoni (with director of research Ross Moore) points to an active investment market showing confidence in overall economic and leasing fundamentals. (That and the positive energy spreading across the border from the Seahawks’ Super Bowl butt-kicking.)
When it comes to investment, Vancouver is as liquid as any city in Canada, Mark adds, both from a local and foreign investment perspective. Investors want to get in, especially with the demand for quality office space in the core. (They're just gonna keep knocking, so we can't pretend we're not here.) We saw it in action with Credit Suisse’s unprecedented decision to start construction of The Exchange office tower (above) minus signed leasing agreements.
Above, Oxford’s MNP Tower. Downtown office vacancy rate is projected to rise to 7% in 2014, up from 6.1% in 2013; 12.4% in the suburbs (up from 11.5%). A shortage of investment product across all classes will continue to push the number of trades in 2014 to at least as many as 2013, Mark adds. The report says industrial demand should increase—availability rate should drop to 6.2%, with net rental rates expected to rise to $8.36/SF. That increase in demand should continue to support the development cycle through 2016. Retail is another strong segment, with several new projects and expansion in existing shopping centres ongoing.