Following three quarters of improvement, the optimism of Canadian commercial real estate leaders has declined slightly
TORONTO - The Real Property Association of Canada (REALpac) and FPL Advisory Group announced the results from the Third Quarter 2010 REALpac / FPL Canadian Real Estate Sentiment Survey. The survey is the industry's most comprehensive measure of senior executives' confidence in the Canadian commercial real estate industry. This quarter, the survey captured the thoughts of 47 senior real estate executives, including CEOs, presidents, board members, and other executives from a broad set of industry sectors including owners & asset managers, financial services providers, and operators & related service providers. The quarterly survey measures executives' current and future outlook on three topics including (1) overall real estate conditions, (2) access to capital markets, and (3) real estate asset pricing. Survey respondents represent the retail, office, industrial, hotel, multi-family, residential, and seniors residential asset classes.
Following three quarters of improvement, the Sentiment Index has declined slightly both in Canada and in the United States. While market conditions appear to have stabilized, optimism regarding continued improvement has abated. Asset values have rebounded, driven primarily by investor demand for yield rather than fundamentals; however, questions of sustainability remain. Perspectives on debt capital availability remain neutral to positive, with most respondents expecting conditions to stay the same or improve slightly. Most respondents believe that equity capital is available today and that conditions will remain stable over the next 12 months.
To download a copy of the survey report, go to http://realpac.ca/canadian-real-estate-sentiment-survey.