- What The Vancouver Real Estate Forum was held last week
- Why Hundreds of attendees came to the city for the annual event
- What next Many expressed concerns about the economy amid U.S. tariff plans
Attendees at the annual Vancouver Real Estate Forum were taking a wait-and-see approach to the potential economic fallout from U.S. President Donald Trump’s tariff plans.
Hundreds of industry professionals descended on the Vancouver Convention Centre last week for the two-day event.
While some were worried that the tariffs will hurt the economy, many expressed hope that the situation will improve over the next six months.
The following are some of the key trends discussed at the forum.
Student housing could see an uptick
Some of the new U.S. administration’s policies could help the Canadian commercial real estate market, according to Jonathan Turnbull, managing director and head of Canada for Harrison Street, which has investments in student housing.
International students less enthusiastic about going to the U.S. while Trump is president could end up in Canada instead, Turnbull said.
“During the first Trump Administration, we did see a surge in international student applications into the Canadian market,” he said in an interview. “Our belief is that could happen again.”
Ottawa recently capped the number of foreign students allowed to study in Canada, which has resulted in fewer international student applications.
Universities have faced financial shortfalls due to the loss of international students. The Vancouver Sun reported that the number of spaces for international students in British Columbia has been cut by 43%.
While that has had a chilling effect on applications, Turnbull thinks that will come to an end and that demand for student housing will grow.
“Canada offers an incredible global education, university degree, that’s affordable in a safe and tolerant environment,” he said. “In the long run, that wins. So, it should rebound.”
As condos freeze, storage looks appealing
The Vancouver condominium market has stagnated, and investors are looking to other asset classes. One alternative is storage facilities, in part due to their simple building designs and growing demand.
But don’t take for granted it’s an easy play, said Shaun Blythen, a vice president of real estate investments and portfolio strategy for Nicola Wealth Management.
“If you build it, someone might not just come along and buy it off you unless they had perhaps taken part in the design,” Blythen said in an interview. “Everyone has a different approach.”
The challenge then becomes managing the storage facility, he said.
Storage facilities are one of the three main asset classes to which Nicola Wealth is dedicating attention right now, he said. The other two are multifamily and industrial.
Blythen said Nicola is aiming to grow its storage portfolio to 25 locations.
The sun will come out tomorrow … maybe
Amid tariffs in the States and Canada’s election, the jury is out on whether the commercial real estate market will improve.
During a panel discussion, Ryan Kerr, a principal for Avison Young in Vancouver, said he sent a letter to colleagues on Jan. 17.
“I said, ‘We’re back,’ ” Kerr said. But three days later, following Trump’s inauguration and his comments about impending tariffs, the story had changed, Kerr said.
Some promising deals have taken place recently, but the economic outlook isn’t as sunny as it once was, he said.
Others on the panel disagreed, saying they believe the market could stabilize and pick up in the next six months.
People speaking on the forum’s sidelines were divided, with some optimistic and others cautious, about the potential effects of a global trade war.
