The commercial property market is facing challenges with negative net absorption expected in the coming years. Spot rents are decreasing, potentially impacting inflation. Canadian pension funds are experiencing difficulties due to higher borrowing costs and real estate investments gone wrong, leading to significant losses and the need to restructure property divisions.
Real Estate Bets Gone Wrong Roil $1.24 Trillion Canadian Funds @business #CMBS ▪Pensions are now retooling property divisions after losses ▪Funds are dealing with challenges at some office properties
Real Estate Bets Gone Wrong Roil Canadian Pension Funds Despite managing just 6% of global pension assets, Canadian funds are responsible for 60% of the total value of private real estate deals that directly involve a pension The largest fund, Canada Pension Plan Investment… https://t.co/TpExbprV6c https://t.co/tF7ge7cjVj
With the property market upended by higher borrowing costs, Canadian pensions are feeling the sting https://t.co/6FgfVYXayf
Spot rents are weaker, which could put pressure on inflation by year end... https://t.co/3gqFzqHb1l
Commercial property mid-year outlook: ‘cracks are forming beneath the surface’ #CMBS “On the office space, net absorption is expected to be negative in 2024 at -63M square feet and -7M square feet next year, the report said.” https://t.co/Ym2oAlVDRM