- Morguard Corp. (TSX:MRC) released its Canadian economic outlook and real estate market fundamentals Q2 update
- The total sales figure for the multi-suite residential rental, office, industrial and retail property types combined rose in Q2 compared with previous quarters
- Industrial investment property sales surged with market interest focused on functional warehouse properties
- Morguard Corp. opened trading at C$103.13 per share
Morguard Corp. (TSX:MRC) released its Canadian economic outlook and real estate market fundamentals Q2 update.
Overall, the total sales figure for the multi-suite residential rental, office, industrial and retail property types combined rose in Q2 compared with previous quarters. According to the report, investors continued to target industrial and multi-suite residential rental properties because of healthy fundamentals and rent growth forecasts.
Industrial investment property sales surged with market interest focused on functional warehouse properties.
Q2 2023 also saw a continued downturn in the office leasing market, with the national aggregate vacancy rate continuing to rise.
The multi-suite residential sector continued to grow as total sales of rental properties rose by 29.5 per cent quarter-over-quarter. The rent growth phase of the multi-suite residential rental market cycle persisted during Q2 with a year-over-year increase of 10.6 per cent.
Following the Bank of Canada’s rate hike in July, the report estimates that job growth and retail spending patterns are expected to remain moderately positive in the second half of the year.
Keith Reading, Morguard’s senior director, research, said that despite the overall muted growth in the commercial real estate industry, the Canadian economy demonstrated a significant amount of resilience.
“The modest growth in various real estate sectors within the last quarter signifies that the outlook for the remainder of this year remains positive.”
However, the Canadian Real Estate Association reported on Tuesday that national home sales were down 0.7 per cent month-over-month in July. Actual (not seasonally adjusted) monthly activity came in 8.7 per cent above July 2022.
Morguard Corp. is a real estate investment company that is engaged in the property ownership, development, and investment advisory services. It owns a diversified portfolio of 191 real estate properties across multiple asset classes, including multi-suites residential, retail, office, industrial and hotel properties, which composed of 17,047 residential suites and more than 4,201 hotel rooms. The company also provides advisory and management services to institutional and other investors. It owns a diverse portfolio of properties in Canada and the United States.
Morguard Corp. opened trading at C$103.13 per share.
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