Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.
Ronald Reagan

 

As the global financial markets came to a grinding halt in the latter part of 2008, subsidizing is exactly what took place. Bailouts, liquidity injections, nationalizations and interest rate cuts became commonplace as governments and central banks around the globe attempted to avoid an inevitable recession and keep credit flowing.

2008 was a prolific year of change as our global financial institutions and global property markets tumbled into turmoil, banks failed, investment banking powerhouses collapsed and near record stock market losses rocked consumer confidence. It was a year of uncertainty and a quest for the elusive answer as to when the bottom would be reached.

While it took Canada longer to feel the impact, as demand for our energy and natural resources remained somewhat buoyant, it was clear that Canada would not be immune to the global slowdown. However, to our benefit, Canadian financial institutions had not jumped onto the subprime mortgage bandwagon only to be flooded with toxic assets, unlike our neighbours to the south. As such, the country’s banking system remained more sound than other countries around the globe. In addition, through all the turmoil, Canadian commercial real estate markets remained more stable and retained greater value than those markets in the UK, Europe and most notably the United States.

This is old news now and the more burning question is what lies ahead for Canada and our markets from coast to coast for 2009 and beyond?

We at DTZ Barnicke believe that the period starting in 2009 and moving into 2010 will continue to be one of challenge and value adjustment in Canada as the financial services, automobile and energy sectors of the economy seek to find balance and begin to recover from the devastation experienced in the traditional credit markets in 2008.

During these times of change and challenge, demand for commercial real estate expertise and advisory services always increases. To meet the needs of our clients, we at DTZ Barnicke offer a wide range of advisory services to assist with both owner and user based decision making. Our service offering now includes national valuation services, financial based restructuring and the sourcing of mortgage funding.

With great challenges come great opportunities. Our commitment is to fully understand the needs and priorities of our clients in these changing times and be here to assist in seeking out the opportunities.

On behalf of DTZ Barnicke I hope you enjoy and benefit from Canadian Perspectives.