Raise property values, drive demand, and increase tenant satisfaction with building maintenance
As Canadians continue to recover from record-breaking inflation, rising interest rates, labour decline, and more, how has the commercial real estate market fared? With multiple sectors seeing growth, the country is trending towards stabilization for the remainder of 2024.
Maintenance is a key factor in remaining competitive in today’s commercial real estate market. It’s not just about making repairs; it’s about foresight, strategy, and continuous adaptation. Keeping buildings looking and performing their best can help owners and managers offer an appealing space, slow depreciation, increase asset value, and deliver for their tenants.
“Building maintenance and improvement is a crucial component for increasing curb appeal, attracting and retaining tenants, and boosting property values,” says Marco Ferrazzo, Process Manager with Artistic Skylights.
Let’s take a closer look at how each market is performing:
Retail
Canada’s retail market has taken an optimistic turn, with consumer spending on the rise. This year’s $66.4 billion increase in retail sales could help promote confidence in the strength of our economy. As the recovery from the pandemic continues to recede, retailers will look to expand in the Canadian market.
Office
As investors continue to move their capital away from riskier ventures, sustaining the commercial property demand, building owners and managers will need to increase their amenity offerings to remain competitive. Commercial real estate is exhibiting positive momentum and resilience, building a solid foundation for growth.
Industrial
The industrial sector is returning to balance as rental growth normalizes, lifting availability rates, and maintaining relatively healthy conditions. As the industrial real estate sector continues to experience strong demand across Canada, high-density and mixed-use development is on the rise. Industrial property investment volume rose in the second quarter of 2024, increasing by 48.1 per cent quarter-over-quarter and driving overall higher Canadian investment volume.
Multi-family
As many people struggle to find housing, the high cost of homeownership is fuelling rental demand. The Canadian multi-family sector continues to be challenged with significant undersupply and unprecedented population growth driving record demand, however, multi-family construction continues with no end in sight.
Why maintenance matters
As the demand for real estate continues to overshadow supply, building owners and managers are competing for attention to attract and retain tenants. From retail locations to office space to residential units, building managers and owners need to stand out in the marketplace.
For retail and office space, amenities and maintenance play a part in leaving a lasting impression on customers and creating a space where people want to spend time. Features like natural light and a bright atmosphere help increase productivity and build the bottom line. 78 per cent of employees confirm that natural light contributes to their overall happiness and well-being, 73 per cent cite increased work satisfaction, and 70 per cent say it improves their work performance.
In the residential sector, a well-maintained property enhances the living experience for residents, contributing to higher retention rates. For renters, regular maintenance and upgrades can help attract high-quality tenants, offering an appealing option for tenants looking to pay higher rents for a standard of living. Well-maintained properties are more attractive to potential buyers, who are often willing to pay a premium for a home that requires minimal immediate repairs and maintenance.
Overall, with Canada’s economy performing well and most commercial real estate sectors following suit, it’s important to keep buildings in tip-top shape to attract and retain tenants and occupants. With proactive property maintenance, owners and managers can boost rental appeal, remain competitive, and drive demand for their properties.
