Four key factors are confronting real estate investors who are proceeding through a "very different environment" from the one they have become accustomed to in recent years, according to Avison Young's chief economist Dr. Nick Axford.
"Overall, there is no question we will see upward pressure on real estate yields, which means downward pressure on pricing for commercial property," Axford said in a recent post.
Avison Young's factors include rising government bond yields; higher interest rates; rising costs to finance; and increasing materials costs combined with a tight labor market.
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