Canada Commercial Real Estate
The Digital Frontier

Charting the Course of Industrial Growth in the Age of AI.

Gross Domestic Product (GDP) is a comprehensive measure of a country's economic activity. GDP growth typically signals increased business confidence and spending.

What's the Story Behind the Numbers?

Observe the pivotal periods reflected in the GDP timeline and consider their lasting impact on Canada's economic landscape.

Economic Highs and Lows

  • Peaks of Prosperity: What drove Canada’s economic surges in the late '80s and mid-2000s?
  • Diving into Dips: Can we trace the roots of each downturn to global events or domestic policy shifts?

Resilience and Recovery

  • Bouncing Back: How did Canadian industries adapt post-recession to reclaim growth?
  • The Role of Innovation: Did technological advancements contribute to a quicker recovery?

Future Forecast

  • Beyond 2020: How might current trends shape Canada’s economic landscape by 2030?
  • New Horizons: With AI on the rise, what sectors could lead Canada’s next growth wave?

How did these events impact consumer spending, mortgage rates, and unemployment?

Explore key GDP timeline phases and corresponding consumer spending trends.

Consumer Spending

Unemployment Rate

Mortgage Rate

In an era of escalating inflation, where does commercial real estate find its footing?

Consumer spending habits, increasingly shaped by technology, are transforming the landscape of retail real estate. The surge in online shopping has led to a growing demand for data centers, essential for supporting the e-commerce infrastructure. This trend raises a crucial question:

How do changes in GDP reflect in the commercial real estate landscape?

Having examined how economic events influence GDP trends and consumer behavior, our attention now turns to the Canadian commercial real estate market. We're set to explore how these economic currents distinctly affect various regions and sectors, shedding light on the unique dynamics and opportunities within Canada's lively commercial real estate arena.

VECTOM: Canada's urban growth epicenters.

Witness how burgeoning populations in Vancouver, Edmonton, Calgary, Toronto, Ottawa, and Montreal are reshaping the commercial real estate landscape. Explore the map and timeline to see these demographic surges in action.

Click on a province to see its population.

What are the key commercial real estate sectors influenced by VECTOM's population growth?

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Summarize what we learned about sectors and regions and then lead into investment performance.

Commentary on investment returns by sector and region. Income and Returns by Sector Allocations bubble chart.

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Commentary on investment returns by sector and region.

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Commentary on investment returns by sector and region. Quarterly Return by Sector & Market line and lollipop graphs with drop downs for total return, income returns and capital growth

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Commentary on investment returns by sector and region.

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Summarize what we learned about investment returns by sector and region and focus in on industrial.

The VECTOM regions, already pivotal economic engines, are seeing their vacancy rates plummet, particularly in the industrial sector. This underscores the burgeoning need for spaces that can house the digital infrastructure of tomorrow.

Why has the industrial sector been so resilient in Canada?

The digital revolution is transforming not just how we work, but where we work. Industrial real estate is at the forefront of this transformation, offering a unique opportunity for investors to capitalize on the growth of AI and tech. By focusing on strategic locations and adaptable properties, investors can harness the momentum of Canada's burgeoning digital economy.

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Buy

Strong Secular Growth Sectors

  • Industrial: value-add small and mid bay in "A" locations where land is scarce
  • Cold Storage: modern facilities to support robust population growth
  • Data Centres: in Quebec, Ontario, and BC

Hold

Neutral/Negative Growth Sectors

  • Modern, big box Logistics

Sell

Low/Negative Growth Sectors & Regions/Markets

  • Older vintage Industrial: without superior locational attributes
  • Critical evaluation of all assets that are exposed to increasing physical risks and/or decarbonization challenges

The digital revolution is transforming not just how we work, but where we work. Industrial real estate is at the forefront of this transformation, offering a unique opportunity for investors to capitalize on the growth of AI and tech. By focusing on strategic locations and adaptable properties, investors can harness the momentum of Canada's burgeoning digital economy.

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Acknowledgments

Datasets used:

Other sources:

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