Top 6 Predictions
For Canada In 2023
Carl Gomez, Chief Economist and Head of Market Analytics, offers data-driven predictions into what the future holds for commercial real estate, capital markets, property markets and the broader economy.
- Canada's Economy Slips into Recession
Canada's economic downturn may be deeper than expected owing to excessive household debt. - Monetary Policy Will Pivot
A deceleration of inflation will allow the Bank of Canada to cut rates over the second half of 2023. - Industrial Cap Rates Will Hold Firm
Despite higher interest rates and slim going in yield spreads, industrial cap rates will hold steady and could even compress further.
- Industrial Will Continue to See Outsized Rental Rate Growth
A persistent undersupply of product suggests that industrial rental rates will continue to grow faster than the rate of inflation. - Hybrid Work Drives a Flight to Quality in Toronto's Downtown Office Market
Submarkets with newer product will continue to poach tenant demand from traditional office nodes such as the financial core. - Retail Resilience Will be Tested
Pent-up demand driving consumer spending will be exhausted which will constrain the recovery in retail leasing volumes.