Investment Trends Survey

Barometer Definitions

Product/Market Barometer

We have developed a unique barometer to identify the momentum of various product/market combinations across the major Canadian urban centres. Survey participants are asked whether they are a buyer or seller ("hold" not an option), and thus a bullish or bearish response is obtained for each property type/market. We have also included publicly traded real estate corporate stock and REIT units since these instruments compete for capital from the same sources.

Property Type
Downtown Class AA Office Tier I Regional Mall
Downtown Class B Office Tier II Regional Mall
Downtown Office Land Enclosed Community Mall
Suburban Class A Office Power Centre
Suburban Class B Office Food Anchored Retail Strip
Suburban Office Land Multiple Unit Residential
Single Tenant Industrial Hotel
Multi Tenant Industrial REIT Units
Industrial Land Corporate Realty Shares
Urban Centres
Vancouver Toronto Quebec City
Edmonton Ottawa Halifax
Calgary Montreal  

Office Vacancy Barometer

We have developed this barometer to identify vacancy momentum for Downtown Class “AA” and Class “B”, as well as Suburban Class "A" and Class "B" buildings for all seven markets. All contributors are asked if vacancy rates will increase, decrease, or stay the same, over the next three months.

The momentum ratio is defined as the largest % directional response divided by the balance of all other % responses. For example, say 75% of respondents believe Montreal Suburban ‘A’ vacancy will decrease, 17% said it would be stable, and 8% said increase. The momentum ratio would equal [75% divided by (17% + 8%)] = 3.0

Investor Outlook

Contributors are asked to comment on expected value trends for each product type over the next 12 months. The result is a forward-looking value expectation.