The Real Property Association of Canada (REALpac) and FPL Advisory Group have announced the results from the Fourth Quarter 2012 REALpac / FPL Canadian Real Estate Sentiment Survey, which recorded the thoughts of a wide variety of industry leaders, including CEOs, presidents, board members, and other executives from a broad set of industry sectors, including owners & asset managers, financial services providers, and operators & related service providers.
The Q4 Index saw little change from recent quarters; while the Canadian market is viewed as strong and stable, many still show concern over international economic conditions.
Additional topline findings include:
• Many express positivity in the overall market, while some look for a further U.S. recovery to spark additional activity; a lack of Class A product remains a primary issue
• Cap rate compression and the low interest rate environment have led to very high asset pricing; many worry that an increase in interest rates could drive values down going forward
• Debt availability remains strong, especially for low-risk assets; however, lenders are finding longer term loans increasingly less attractive
• Equity capital is seen as widely available as both public and private investors continue to find real estate attractive