Is Canada’s Commercial Real Estate Market Set for a Comeback?

[donpatrick]

As reported in Mortgage Brokers News and from research reports of Canada`s commercial real estate market seeing a 50 per cent decline in transactions in the first half of 2009, there are signs that it may be coming back to life.

According to commercial mortgage specialists, this is a good time for purchasers with strong backing. They are seeing an increase in volume year over year.


Lenders are still being "very cautious and conservative", with many of them going below appraised values for commercial buildings, the situation has improved from earlier this year.


For buyers in strong positions, there are deals on industrial buildings and it appears that there is a "cautious" market coming back for hotels and plazas.

is it really set for comeback or what ??

 

[thejules]

I hope so, but I don`t think so. I beleive that we`ll back on this time in our economic history and say, "Damn! I wish I would`ve fiquired out a way to buy more properties." It may be the best time to get creative strategic deals done. As long as they fit into our personal, professional, and financial goals.

 

[housingrental]

Really ?
I was under impression (possibly incorrect) almost nothing`s going through in hotel`s and there`s been material devaluation?


QUOTE (donpatrick @ Nov 2 2009, 05:50 AM) For buyers in strong positions, there are deals on industrial buildings and it appears that there is a "cautious" market coming back for hotels and plazas.

 

[bizaro86]

QUOTE (housingrental @ Nov 3 2009, 09:32 AM) Really ?
I was under impression (possibly incorrect) almost nothing`s going through in hotel`s and there`s been material devaluation?

The prices of the publicly traded companies that own hotels (both in the US and Canada) would suggest that the market value of hotels is significantly below what it was 2 years ago, with little improvement in sight. If you don`t agree with that impression, the easiest way gain exposure to the sector is through Canada`s hotel REITs. For example, I hold positions in INN.UN and RYL.UN. Or you could try to buy some hotels. But the market is illiquid, and my bankroll doesn`t quite swing that

Note that this isn`t a recommendation, do your own due diligence, all required disclaimers apply, I`m not giving investment advice, etc.

Michael

 

[housingrental]

Thanks Michael
That`s what I thought

Donapatrick care to comment on why you think otherwise?