Commercial Real Estate Industry To Stay Robust Regardless Of The Pandemic
The global pandemic created a negative impact on numerous industries. Geo-political instability, along with high inflation, disrupted supply chains, and spikes in oil prices were some of the biggest factors behind it. However, it doesn’t seem that the commercial real estate industry is severely affected by the pandemic. This is proven according to statistics as well.
According to a recent report of CBSE, it is indicated that the commercial real estate investments in Canada can hit all-time high in 2022. In other words, it would reach $58.5 billion, which is much higher than previous years high, $57.9 billion.
Employers are now looking forward to creating hybrid workplaces. Due to the same reason, there is a high demand for office spaces. Most companies have figured out that 100% working from home is not the most effective solution available to get work done from employees. As of now, they experiment with different workplace strategies. However, most of them have gone for long-term leases, and even if they wish to switch to full-time work from home, it might take some time for the transition to happen.
The retail sector had to face some significant challenges during the first months of the pandemic. Due to the same reason. Landlords had to deal with abatement of rentals. However, retail sector is picking up as of now. Those businesses are doing good in general, and the landlords no need to worry about giving abatements.
No matter what, the IT sector has been able to remain strong throughout the pandemic and after the pandemic. Hence, commercial property owners who have given their property for IT establishments don’t really need to worry too much about anything. In fact, the total number of IT startups is increasing, and they create a significant demand for commercial real estate. Based on this, it is even possible to conclude that the technology industry will play the role of the market driver for commercial real estate.
Even the well-established tech companies in Canada are increasing. They are attracting skilled foreign workers from other countries to keep up with rapid expansions. On the other hand, large-scale tech companies such as Meta, Amazon, and Google are now expanding to Canada.
The Russian-Ukraine was didn’t create a major impact on the commercial real estate industry of Canada. Hence, the market is going strong, and it didn’t face any negative impact at all due to the pandemic.