Halifax anchors stable, optimistic Atlantic Canada outlook
An aura of positivity surrounds the commercial real estate industry in Atlantic Canada as we look towards 2025. That’s the key takeaway from a recent CBRE event that shed light on the region’s promising outlook. Bob Mussett, the executive vice president of CBRE Halifax, echoed this sentiment in a recent interview.
One of the standout aspects of Atlantic Canada’s real estate market is its stability. Unlike other regions, it doesn’t experience extreme highs and lows. This can be attributed to the diversified economy, the presence of multiple universities, and the military infrastructure in Halifax, which provides jobs for around 30,000 people.
In terms of retail, despite challenges like higher interest rates and restrained consumer spending, the sector remains resilient. Grocery-anchored stores and enclosed retail projects are particularly strong, attracting increased investment. With vacancy rates at an all-time low, retailers are vying for prime locations, leading to higher rents and landlord-friendly leasing terms.
Industrial spaces in Atlantic Canada have also seen significant growth. After a period of pent-up demand, larger projects have been completed, introducing a record amount of new supply. Construction is still ongoing, with some spec buildings featuring top-notch facilities. The sector is performing well in terms of sales, with limited transactions and high demand.
On the industrial front, a shortage of available land for development has driven land values up. Similarly, construction costs are rising, signaling a continued increase in rents. Despite these challenges, the industrial sector continues to show promise in the region.
