Oliver Tighe, valuation expert at Colliers International, predicts a positive 2015 for commercial real estate. This is predicated on significant capital infusion into the Ottawa real estate market combined with Ottawa’s core strengths.
This positive outlook comes despite the fact that commercial real estate sales in 2014 experienced a 16% decline over 2013. The retail markets suffered the greatest drop falling 35% but office and industrial sectors also had significant declines of 30%. Although commercial sales seem to be moving quite slowly, multi-family units went up 33% in the Ottawa area.
Tighe explains: “There is a divide between what the vendors want for their assets and what buyers are willing to pay.” He indicates that the demand for good quality assets continues; the problem is lower to average quality properties have challenges with vacancies, poor tenants, poor locations, and deferred maintenance. Consequently, system upgrades and good management plans are needed to attract good tenants.
Read full article here: https://www.obj.ca/Real-Estate/Non-residential/2015-01-27/article-4022451/Citys-commercial-real-estate-market-to-improve-in-2015%3A-Colliers-International/1
