— Canadian real estate investors are optimistic about the future, yet cautious about taking greater risks —
Toronto, December 13, 2012 – As the global economy is plowing through challenges and uncertainties still lingering from the last recession, Canadian commercial real estate investors are optimistic about market conditions, yet somewhat cautious about taking on more risk, according to Colliers International’s 2012 Global Investor Sentiment Survey. Although the Investor Sentiment Index rises to 104.1 points over the five-year time frame, which indicates a positive stance, less than half (45%) of respondents said they are likely or highly likely to move up the risk curve to reap better yields. This risk tolerance level is lower than the one expressed by investors last year when nearly two-thirds (64%) of Canadian investors were willing to take on more risk.
This somewhat conservative mindset to risk is also reflected in investors’ views on returns as 58% of Canadian respondents target their Internal Rate of Return (IRR) below 10%. Nevertheless, Canadian investors have not lost their appetite for deal-making with an overwhelming majority (78%) confirming plans to expand their portfolios in the near future.To read the full story, please click here