Calgary posted the highest overall returns for commercial real estate investors last year, with an average 21.6 per cent return, according to the REALpac / IPD Canada Annual Property Index. Edmonton (13.9 per cent) was in second place, followed by Vancouver (15.1 per cent), Montreal (15 per cent), Toronto (14.9 per cent) and Ottawa (12.8 per cent).
Nationally, retail led all sectors, with an average increase in investment of 16.8 per cent from a year earlier, followed by office real estate at 16.3 per cent and industrials, which posted a 12.8 per cent return on investment last year compared to 2010's performance. "The one-year performance of direct property investment, at 15.9 per cent, exceeded the return of the REIT market (15.1 per cent), bonds (12.8 per cent), inflation (2.3 per cent) and equities (-10 per cent), according to REALpac.
The REALpac / IPD Canada Annual Property Index measured over 2,100 institutional grade properties across Canada, which were valued at $95.2 billion at the end of 2011.
