Commercial real estate has been a great investment during the past year, with returns in the 13.1% range – far outpacing stocks (5.9%), bonds (4% for some government bonds) and inflation (1%), according to the REALpac/IPD Canada Annual Property Index.
The May 14 report notes, however, that Vancouver commercial real estate generated the lowest return among Canada’s largest six cities.
The total return for Metro Vancouver commercial real estate was 10.6%, according to the report. That includes a 5.5% return from income and a 4.9% capital gain.
The other Canadian cities’ returns for commercial real estate were:
- Calgary: 17.4%;
- Edmonton: 17.1%;
- Toronto: 13%;
- Montreal: 11.8%; and
- Ottawa: 10.9%
Vancouver commercial real estate generated lower income for owners than any other Canadian centre. The capital gain on that land, at 4.9%, was fifth out of the six centres, bettering Ottawa’s 4.4% capital gain.
