Morguard predicts good 2015 for Ottawa commercial real estate market

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One of North America’s largest real estate and property management companies is predicting a good 2015 for Ottawa’s commercial market, although the office market’s struggles are expected to continue.

Morguard released its 2015 Real Estate Investment Trends to Watch in Eastern Canada on Friday.

It said Ottawa office buildings with long-term government leases will attract the most investor attention as a strong public service presence will bring stability with it. Morguard said demand will exceed supply and property values will stabilize near their peak.

New, more efficient towers will continue to attract tenants from other buildings in Ottawa, Toronto and Montreal, Morguard said.

The company said Ottawa’s industrial rental market will remain stable. Across Eastern Canada, the company predicts a stronger manufacturing sector will support the industrial rental market, and the retail market will adjust to Target Canada’s departure, which will support leasing activity in shopping centres.