Real estate professionals, developers and investors descended on Toronto this week for the annual Real Estate Forum.
The Metro Toronto Convention Centre was abuzz with two days of panel discussions, keynote speeches and networking opportunities, as industry experts and insiders shared their insights on improving investor sentiments, changing market fundamentals and what 2025 has in store for the industry.
Here are Green Street News’ key takeaways from the 2024 forum.
2025: The year of optimism
If the word of the year for 2024 was “volatility,” the theme of 2025 will be “optimism.” While for some speakers it was preceded with the word “cautious,” the overarching trope from panel to panel was a positive outlook for the year ahead. Meanwhile, Rob Kumer, chief executive at KingSett Capital, decreed he was “full-on optimistic,” and told attendees he believes the market is in the trough.
Despite falling industrial rents and the rumored death of the office, the hopefulness for the new year is supported by strong fundamentals across asset classes, increased dealflow in recent months and renewed interest from investors.
Prime time to invest
As interest rates continue to come down and stability returns to the market, risk-free alternative assets – particularly GICs – which have lured investors away from real estate will have less appeal. That capital already is beginning to return, and investment activity will continue to build in 2025, Paul Morassutti, chair of CBRE, said.
The coming quarters hold a prime opportunity to invest, with several speakers noting that it may be the best time to buy real estate “in a generation.” Kumer predicted the market is on the cusp of a “huge bull run” for income-producing assets.
High-performing properties and market location will be of greater interest to investors than one particular asset class.
Retail revolution
That being said, retail is drawing attention from across the industry. Necessity-based retail, particularly grocery-anchored assets, are poised to have a strong performance in 2025. A lack of development over the last 15 years will continue to aid rent growth and valuations for the foreseeable future.
Blair Welch, founding partner of Slate Asset Management, said his firm is “extremely bullish” on retail, especially grocery-anchored properties, and is starting to see more opportunities arise for open-air assets.
Tariff trouble
Speakers were divided on the seriousness of President Trump’s tariff threats, but agreed that the threat of them has sent shock waves through the market and the economy nonetheless.
Morassutti said the industry should not “believe the hype,” and Benjamin Tal, managing director and deputy chief economist at CIBC, said Trump was “more bark than bite.” But David Frum, political analyst and staff writer at The Atlantic, told attendees that the risk should be taken seriously.
Labour woes
Labour shortages in the construction industry are set to worsen in the coming years as a large swath of workers retire and their replacements are decidedly less productive. According to Joseph Mancinelli, international vice president and regional manager of Central and Eastern Canada at LiUNA, for every worker who retires, five are needed to match their productivity.
While there has been a push to recruit young people and women into skilled trades, gaps remain. Immigration was targeted as the fix, with panelists noting that it should be increased and preference should be given to skilled workers.
