Avison Young, one of the is the world's fastest-growing commercial real estate services entity with its headquarter in Toronto, Canada, has released its Canada, US, and UK forecast for commercial real estate this year.
The firm's the yearly report includes the office, retail, industrial and investment markets in 55 Canadian, US and UK metropolitan regions, reports PR News Wire.
Mark E. Rose, Chair and CEO of Avison Young says, "The global real estate industry has had a tremendous run. It has been more than six years since the Great Recession...
The financial and real estate markets appear stable as we begin 2016, but variables now surfacing could undermine short-term prosperity. The year ahead seems to be the waning days of a prosperous cycle - perhaps even a cyclical top in liquidity, pricing and transaction velocity."
He adds, "As difficult as it is to acknowledge that we are entering a period of transition, we must remain clear-eyed as we undertake our 2016 strategic planning. Our industry has always been cyclical, and factors that negatively affect pricing or trading velocity are, in turn, countered with opportunistic buyers and lessees."
The company believes that this year may be choppy for them but will ultimately stabalize, bearing the interest rates in mind.
In Canada, Avisong expects that the country will have another unpredictable year with varying performances in different regions.
Vacancy in Canada, according to the company's report, has increased by 12.9 percent and 11.8percent for the West and East, respectively. Meanwhile, in retail, new entrants are seen operating despite some closures and downsizings while the industrial vacancy remains tight.
In the U.S., the growth in 2015 has solidified the country's recovery. Continued job growth is foreseen, as well as growth in the office, industrial, retail and multi-residential sectors.
The report concluded that the company was on pace to achieve the half-trillion-dollar mark as year-end approached, an abundance of capital for real estate and stability is expected this year.
