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MISSISSAUGA, ONT. — Morguard’s 2024 Economic Outlook and Market Fundamentals Third Quarter Update reveals sales of Canadian multi-suite residential rental properties surged during the third quarter.

This is thanks, in part, to increasing availability and also marks the highest quarterly total since the first quarter of 2022.

“This jump can be attributed to an increase in large-scale property and portfolio availability,” states a release. “Attractive Canada Mortgage and Housing Corporation financing supported the rise in sales activity.”

Rent growth in the multi-suite residential rental market softened in the third quarter. The average asking rent for all unit-sizes combined in the country’s 35 largest markets increased by 5.4 per cent year-over-year in September, according to Rentals.ca. In the near term, rent growth is expected to continue to moderate.

“The multi-suite residential rental sector remains popular with a range of investment groups seeking attractive yields and stable and rising income streams,” said Angela Sahi, president and chief operating officer of Morguard in a statement. “While some buyers are waiting for borrowing costs to decline further, the continued easing of inflation and future rate cuts have created a solid foundation for Canada’s real estate market to strengthen starting next year.”

On the commercial side, industrial property investment sales activity moderated in the third quarter, following a significant uptick in the previous quarter, the release reads.

The slowdown was largely attributed to a shortage of available properties.

“Meanwhile, new supply in the industrial leasing market continued to outpace demand, consistent with the trend observed over the past year,” the report adds.

“The Canadian office leasing market shifted into neutral gear in the third quarter with absorption rates varying significantly across regions. The Greater Toronto Area outperformed, recording over 650,000 square feet of positive net absorption, while the Greater Vancouver Area underperformed with negative net absorption. Overall, tenants continued to show a preference for shorter-term subleases that were already improved and move-in ready.”

Overall, the report states the Canadian economy was on track to expand by approximately 1.5 per cent in the second half of 2024 with a slightly stronger growth trend forecast or the first half of 2025.

The central bank is expected to continue cutting interest rates over the remainder of 2024 and in early 2025 while focusing on supporting the economy and labour market.

“The Bank of Canada’s rate cuts will be crucial to the real estate sector’s overall resilience, helping to drive the economic recovery from the effects of monetary tightening,” said Keith Reading, senior director, research at Morguard. “As the real estate market regains momentum, investor activity will increase in the second half of 2025.”

The full report is available at .