Despite expectations there is no distressed selling in Alberta according to the chief executive of real estate firm CBRE Canada. Speaking to Bloomberg TV, Mark Renzoni said that the province is resilient in the face of the oil downturn.
Part of the reason is that many properties are held by institutions that are not directly affected by the lower oil prices. “This is a tenants’ exposure [to the oil downturn] rather than a landlords’ exposure” he said.
Although he didn’t rule out a change in the situation at a later date, Mr Renzoni believes that a more likely shift is by tenants sub-leasing their long-term space as expansion plans are scaled back.
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