In a survey carried out by Transwestern Commerical Services and Devencore, it has been found that there is going to be moderate growth in the real-estate sector of the US and Canada in 2020. Commercial Real Estate Sentiment Survey has summarised the insights of brokers and analysts across 43 North American offices in the medical and industrial sectors. In addition to this, it has been observed that expected e-commerce growth in tight conditions is expected to drive the industrial sector.
As per the results available from the survey, it has been found that the US index will remain at an average score of 106.9 for the 2020 office market conditions. Although it indicates expansion over the 100 neutral zones, still, it is lower than the 2019 outlook which stood at 111.2. According to some experts, there will be a hike in the office rent in 2020 due to an increase in new construction deliveries. The survey highlighted that tenant densification will also contribute to slow down the growth in the real estate markets of the US and Canada.
The US index for 2020 industrial market conditions will witness a slight decline and is expected to settle at an average of 116.2 in comparison to the earlier expected value of 122.1. And the Canadian commercial real estate markets are expected to stay uplifted in 2020 despite facing some concerns originating from political and trade impacts and increasing construction expenditure. According to the real estate investor, KJ VanDerwerken, the development is expected to witness an increase in 2020 and there is going to be a strong rise in rent, especially in the technology sector.