The appeal of Canadian commercial real estate on the international stage shows no sign of slowing.

A report from Morguard Corporation shows that, although small in global terms, the interest in Canada’s commercial sector is gaining significant traction among investors.

"The outlook for the industrial sector remains bright as low vacancy rates indicate longer-term price support and we expect to see modest but healthy price appreciation in the office leasing sector," said Keith Reading, Director of Research at Morguard.

Demand continues to outstrip supply despite concerns among international investors including US policy, interest rate rises, low commodity prices and potential fractures in the European Union.

"We see the current phase of the commercial real estate as durable," added Reading. "Canada's federal budget contained few surprises. The national inflation rate was unchanged for the quarter and our continued confidence in the U.S. economy lead us to believe that current market conditions for commercial real estate will remain supportive for the foreseeable future."

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