The growing weight of financial market turmoil, soaring inflation, and interest rate hikes finally drove the commercial real estate investment market to a tipping point in Q2 2022. Cap rates rose across nearly all sectors and geographies in the second quarter, driving up the national average cap rate figure to its highest level since before the pandemic
While economic growth forecasts for Q1 2021 have been revised downward due to second wave mitigation measures in much of the country, investors are clearly looking past the next two to three quarters and making decisions based on the longer-term economic landscape.
With new coronavirus cases trending in the wrong direction in many parts of the world and trust in new vaccines still mixed, it is becoming increasingly clear that we will be in a world of masks and physical distancing until well into 2021.
While no one would suggest we are out of the woods yet, cautious optimism returned to the Canadian real estate market in Q2 2020. The initial steps toward re-opening the economy have been measured and disciplined with few major stumbles.