Welcome to the fourth annual edition of Western Investing, the definitive guide to investing in commercial real estate across Western Canada.
The annual Western Investing magazine print and digital edition were prepared and published prior to the outbreak of the global COVID-19 pandemic – and reading it is a lesson in how a promising year was derailed due to the virus crisis.
In this online version of Western Investing 2020, we have culled some of the pre-pandemic outlook articles that no longer reflect current market reality.
This year will present some challenges to western investors, especially after the record-breaking performance experienced in the previous two years. We expect the 2020 moderationin real estate markets to be brief, though brutal. The key reason is that the downturn is based not on economic fundamentals but the arrival of the ugliest black swan seen in a century.
The commercial real estate market of Western Canada is anchored on rock-solid fundamentals, but the coronavirus has temporarily uprooted that foundation. Still, the industrial sector has continued to thrive, due largely to distribution and warehouse demand. The multi-family sector has also remained remarkably stable in unprecedented head winds.
Retail, with the forced closure of many stores, and the office sector, which has seen an exodus of people towards working from home during the pandemic, remain temporary areas of concern.
The Canadian economic recovery is expected to begin a rebound in the second-half of this year, provided the virus crisis is contained. We look forward to sharing the better times ahead.
Frank O’Brien,
editor,
Western Investing
and Western Investor
