Real Estate Shift: Investors Move from Industrial to Multifamily Housing
Canada’s real estate market is seeing a significant shift in investor focus, according to Daniel Mahler, a newly appointed partner and co-lead of the real estate department at Miller Thomson LLP.
Mahler, who has spent years advising on major real estate deals, notes that the once-red-hot industrial property market has cooled. During the COVID-19 pandemic, industrial real estate boomed, driven by surging e-commerce and demand for distribution centers.
“The number of industrial deals I did over COVID was crazy, and pricing was through the roof. That’s obviously really, really cooled down,” Mahler explains.
Now, investors and legal experts are turning their attention to multifamily housing. If you asked the average transaction lawyer in Toronto or across Canada, they would likely point to multifamily housing as a key area of focus, Mahler suggests.
While this trend is gaining momentum, Mahler’s practice remains diversified. His clients include real estate investment trusts (REITs), investment funds, developers, and landlords, reflecting the broad needs of Canada’s dynamic property market.
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Beyond the national platform, Mahler was drawn to Miller Thomson for the opportunity to take on a leadership role while continuing to grow his practice. At 43 years old, he aims to expand his book of business rather than scale back his day-to-day transaction work. He views the leadership position as a chance to have a voice in building something special and developing the business.
Mahler began his legal career at Goodmans LLP and spent a decade at Aird & Berlis LLP before joining Miller Thomson. His move reflects the evolving needs of real estate clients and the importance of firms offering comprehensive, nationwide legal services in Canada’s dynamic property markets.
Conclusion
The shift in Canada’s real estate market, from industrial properties to multifamily housing, reflects broader economic and demographic trends. As e-commerce growth slows and interest rates rise, investors are seeking stability in residential investments. Daniel Mahler’s insights highlight this transition, as legal experts and investors adapt to the evolving market. His move to Miller Thomson underscores the demand for comprehensive legal services in Canada’s competitive property landscape.
Frequently Asked Questions
What is causing the shift from industrial to multifamily housing in Canada?
The shift is driven by cooling demand in the industrial sector, which boomed during the COVID-19 pandemic due to e-commerce growth. Now, investors are turning to multifamily housing for more stable returns.
Why are investors focusing on multifamily housing?
Investors are drawn to multifamily housing due to its stability and demand for rental properties, especially as housing shortages and rising interest rates persist.
Who is involved in this trend?
Key players include real estate investment trusts (REITs), investment funds, developers, and legal experts like Daniel Mahler, who advise on these transactions.
Why did Daniel Mahler join Miller Thomson?
Mahler joined Miller Thomson for its national platform and the opportunity to take on a leadership role, reflecting the market’s need for comprehensive legal services.
What’s next for Daniel Mahler at Miller Thomson?
Mahler aims to expand his practice and contribute to building the firm’s real estate business while maintaining an active role in transactions.
