Ottawa investment market report
H2 2024
Investment market trends
01 - Quality office is finding its equilibrium
We’ve begun to see significant office transactions in the greater Ottawa area. Mainly driven by class A and well-located buildings, new pricing benchmarks that are attractive to buyers are starting to take shape. In addition, the metrics are becoming palatable to many lenders.
Office buyers recognize the value of strong fundamentals such as good building location, fueling the appetite for well-positioned properties. With the stigma surrounding office investments due to the rise in remote work, significant discounts have emerged, resulting in strong cash flow and reinforcing their investment decisions.
02 - Raising new capital is key in most acquisitions
No longer are we in a market where buyers can conclude a due diligence process within 30 days. In addition to lenders requiring more stringent underwriting which means longer approval times, it is taking more time for many professional investment groups to raise capital from new sources.
Private capital buyers in Ottawa are pooling resources to buy institutional grade assets that were previously out of reach
03 - Investors have strong demand for retail assets
Although cap rates have increased in all asset classes from an all time low in 2021, retail has sustained strong values throughout the interest rate hikes. In 2024 demand was still strong for quality retail properties. Investors recognize that the development of suburban retail plazas has not kept pace with population growth. Institutions have returned to the market to acquire retail properties, especially when it comes to plazas with national tenants or grocery anchors
Ottawa investment activity
Canadian private investors
Canadian private investors
Government investors
Others (developers, users, builders)
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Get in-depth investment market reports and insights from commercial real estate experts in Ottawa. Avison Young advisors look at Ottawa commercial real estate activities and the latest Ottawa statistics to provide you expert market research on Ottawa's investment properties.
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