Real Estate Remains Resilient Despite Economic Challenges

Steven Marino Shares His Outlook on the Canadian Real Estate Market on Soundbites Podcast

Steven Marino, Executive Vice-President, Portfolio Management with GWL Realty Advisors, recently did a series of interviews with industry leaders in Investment Executive and also participated in the newspaper’s Soundbites podcast. Marino discussed the current state and future prospects of the Canadian real estate market and how GWLRA is positioning its portfolio to take advantage of opportunities and mitigate risks.

Canada’s Real Estate Market Is Healthy and Attractive

Marino said that despite the economic news that would traditionally give landlords pause, Canada’s real estate market remains healthy and attractive for investors. He cited the $50 billion in market activity last year, driven by private and foreign investment, as evidence of the strong demand for Canadian real estate. He also pointed out the positive market conditions in Canada, such as stable banking and political systems, forecasted G7-leading economic growth and continued robust population growth.

Industrial, Multi-family and Retail Sectors Are Performing Well

Marino said that GWLRA has high conviction in the industrial, multi-family and retail sectors, which are showing strong market fundamentals and historically low vacancy rates. He explained how the industrial sector is benefiting from the growth of e-commerce and reshoring, how the multi-family sector is resilient and essential, and how the grocery-anchored retail sector is convenient and popular. He also said that GWLRA is actively managing its portfolio to optimize its exposure to these sectors.

Office Sector Is Seeing Signs of Recovery

Marino acknowledged that the office sector is the most troubled segment, with elevated vacancy rates and uncertain demand. However, he said that there are signs of recovery, such as the increase in the average in-office mandate, the establishment of return-to-office plans by more companies and the differentiation of best-in-class assets from the rest. He also said that the end of the development cycle and the removal of obsolete properties will help to stabilize the market in the long term.

Read the full article in Investment Executive or listen to the Soundbites podcast.