Welcome to the CRE podcast. 100% Canadian, 100% commercial real estate.

Recorded live at the Southwestern Ontario Real Estate Forum, in this episode of the Commercial Real Estate Podcast, Aaron Cameron and Adam Powadiuk chat with Ted Davis, COO at Avison Young, about the evolving landscape of Canadian commercial real estate. Ted shares insights on current market corrections, the importance of price discovery, and why Southwestern Ontario is now a core market. They delve into the impact of technology and data on the brokerage business, discussing how information commoditisation and the rise of alternative assets are reshaping client expectations and service delivery. A must-listen for anyone looking to understand the future trajectory of Canadian CRE.

Long Summary

Welcome to the CRE podcast. 100% Canadian, 100% commercial real estate.

Recorded live at the Southwestern Ontario Real Estate Forum, in this episode of the Commercial Real Estate Podcast, Aaron Cameron and Adam Powadiuk chat with Ted Davis, COO at Avison Young. Ted, with his expanded Canadian purview, offers a candid look at the current state of commercial real estate. He discusses why the market is undergoing a correction, highlighting the crucial need for price discovery through increased transactions. Ted explains how Southwestern Ontario has transformed into a core market, driven by population growth, logistics, and affordability.

The conversation then pivots to the future of the industry, challenging the traditional “hockey stick” growth model and suggesting a period of more modest, flat stability in the next cycle, influenced by interest rates and construction costs. Ted details how the brokerage business, being transaction-based, will adapt by focusing on enhanced data, guidance, and advisory services. They explore the disruptive potential of artificial intelligence, robotics, and autonomous vehicles on urban planning and asset utility (e.g., downtown parking). The discussion also touches upon the increasing institutional investment in alternative assets like real estate and the need for greater data sophistication and regulatory oversight (like ESG reporting in Europe) to meet evolving investor expectations.

What you will learn:

• Current Market Correction: Understanding the ongoing price correction in Canadian CRE and the crucial role of price discovery.
• Southwestern Ontario’s Transformation: Why Southwestern Ontario is no longer a tertiary market but a core location for investment and development.
• The Future of CRE Cycles: Insights into why the next cycle might see modest, stable growth rather than another bull run, in contrast to historical trends.
• Impact on Brokerage: How the brokerage business adapts to changing market dynamics by focusing on transaction volume and enhanced advisory services.
• Data and Technology’s Role: The increasing importance of data commoditisation, AI, and other disruptive technologies in commercial real estate.
• Alternative Investments: Why major funds are increasingly investing in real estate as an alternative asset class.
• ESG and Regulation: The potential for top-down regulation and shareholder value to drive data reporting and sustainability in real estate, drawing parallels with European markets.

Ted Davis is the Chief Operating Officer (COO) at Avison Young, a global commercial real estate services firm. With over twenty years of experience in the business, Ted oversees operations across Canada, giving him a unique perspective on national real estate patterns and strategies. His expertise spans various service lines including valuation, project management, consulting, property management, brokerage, and debt. Ted is a strong advocate for process-driven management and leveraging technology to enhance client services in a rapidly evolving industry.

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