A report released by RE/MAX of Western Canada noted commercial real estate markets in 2020 faced endless challenges. However, investors and end users in Western Canada showed resilience in their ability to both adapt to changing conditions and position themselves for the future.

The Report highlighted trends and developments in seven major centres in Western Canada. Industrial was the top performer, driven by increased demand for warehouse and fulfillment space from multi-national companies such as Amazon and FedEx. Demand for multi-unit residential remained consistent, with higher capitalization rates and lower values attracting investors in some markets. Farmland rounded out the top three sectors, with robust demand in Saskatchewan sparking strong sales and upward pressure on values.

Alberta’s Hutterite Colonies sought to expand farming operations. The trend was highlighted by the sale of a 20,000-acre farm in Norquay last August, considered one of the largest in Western Canada. Overall average price for farmland in Canada increased 3.7 per cent in the first six months of 2020, with Saskatchewan reporting the greatest increase in values, according to the Farm Credit Canada’s 2020 Mid-Year Farmland Value Report.

Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada says, “Saskatchewan’s attractive price point is expected to continue to attract investors and end users, especially those from province’s that have higher farmland values, in the coming months.” He says, “This segment is also expected to heat-up as foreign investment returns to the overall market in 2021.”

The report says that, while restaurants were hard hit by the pandemic, drive through locations emerged as 2020’s perfect business model — no touch, no contact, just tap and go. Demand for this product surged in Saskatoon, Kelowna, and Calgary.