BC commercial real estate outlook hinges on interest rates easing

High interest rates in Canada are affecting the commercial real estate market, causing challenges for investors and a rise in receiverships, especially in development land. The rates have also led to a decrease in residential land transactions. However, income-producing assets in the multifamily and industrial sectors are attracting investors. High construction costs are limiting development, worsening the housing supply-demand imbalance. Despite these issues, optimism remains for increased deal-making as interest rates are expected to improve in late 2024.