INTEREST RATES & COMMERCIAL REAL ESTATE

REALpac's sentiment survey indicates growing concern about the impact of higher interest rates

In spite of strong fundamentals, confidence among Canada's commercial real estate leaders continued to wane as go-forward concerns about the Canadian economy, as well as external factors persist. This and other findings were revealed in the Third Quarter 2013 Canadian Real Estate Sentiment Survey released today by the Real Property Association (REALpac) and FPL Advisory Group.

"Higher interest rates and higher volatility in the equity markets will likely make for more challenging times in the coming year. Perhaps this will lead to a greater separation in values between higher and lower quality assets. This range compressed significantly during the recent period of high liquidity in debt and equity markets," commented survey participant Allan S. Kimberley, Vice Chairman & Managing Director, CIBC World Markets.