Commercial real estate trends shifting toward purpose-built rentals: Re-Max report
BNN Bloomberg
An analysis of 12 of the largest Canadian commercial real estate markets shows developers have shifted their focus toward purpose-built rental construction, some at the expense of new residential condominiums and commercial buildings.
Re/Max Canada's 2024 Commercial Real Estate Report, which examined the dozen markets during the first quarter of this year, says multi-family and industrial real estate were the top-performing asset classes in all cities.
It says the federal government’s decision to cancel the GST on new residential builds has spurred the construction of purpose-built rentals, which were the primary focus in every major urban centre analyzed, followed by student housing and seniors’ residences.
Landlords of malls and strip plazas have also been increasingly exploring a residential component amid a push for more density, signalling a "clear trend toward future mixed-use developments."