Growing by Lohb

Canadian commercial real estate investment bounced back in 2010 at 11.1 per cent, which is the market's best performance in the last few years.

According to the report, the annual total return is underpinned by a 4.0 per cent capital growth and a 6.5 per cent income return, measuring $97 billion of directly-held commercial real estate, as of the end of 2010. Current data indicates a turnaround from 2009's negative return at a negative 0.3 per cent, and 3.7 per cent in 2008.

While Montreal led the six largest commercial property markets with a total return of 14.2 per cent, Toronto ended up third, reaching the value of 10.9 per cent. Returns in the other four markets are listed as follows: Vancouver — 13.7 per cent; Ottawa — 10.6 per cent; Calgary — 8.7 per cent; Edmonton — 6.5 per cent.

As Simon Fairchild, managing director of IPD North America, declared to the press, "A rebound in property values was entirely responsible for boosting the total return back into double-digit territory in 2010."

Data were provided by the REALpac/IPD Canada Annual Property Index.