As we reach the end of 2016, we look towards the next year. What does 2017 have in store for commercial real estate?

While we cannot predict the future, there are few trends that we would like to note as the next year is right around the corner.

Demand for Office Property in Toronto to Continue

We expect the demand for commercial real estate in the GTA to remain strong, especially in the office segment.

The urban intensification over the last few decades in Toronto has created one of the strongest office markets in North America.

As well, the trend of low vacancy in office will continue as there is a shortage of leasable office space.

Retail Remains Strong in Canada

Just as urban intensification has created a high demand in office, the same cause has created a strong retail market.

There will need to be more creative ways to find retail vacancy in cities, including the trend of the “pop-up shop”. This allows tenants to gain space when they cannot secure long term leases.

We expect the mixed-use developments of retail and residential to continue in order to maximize the space in the urban core.

Canadian Commercial Real Estate – A Safe Bet

With the instability in the United States and the uncertainty of Donald Trump as president-elect, investors continue to view Canada as a stable economy.

Just as Brexit caused a lot of concern, the recent election has made investors wary of the United States’ real estate market, as they do not know what will happen over the next year.

This makes Canada’s market extremely attractive. To the dismay of many Canadians, we expect foreign investment to continue to remain strong.

What do you think will be the outlook for 2017 commercial real estate in Canada?