How is the war in Ukraine impacting commercial real estate investors?

The global commodity price surge that has followed Russia’s invasion of Ukraine is impacting Canada’s commercial real estate market – in both negative and positive ways, industry experts say.

Canada’s inflation has risen to 6.7 per cent, a 31-year high, according to Statistics Canada. To rein in runaway price growth, the Bank of Canada raised the interest rate in April by half a percentage point to 1 per cent – the largest single increase since 2000 – and stated more hikes are forthcoming.

In short, both building and borrowing cost more, so Canadian commercial real estate properties are more expensive than ever, according to CBRE.

Published by Nancy Lanthier in The Global And Mail.