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Special Report

Foreign Exchange Rate

January 2023

Current Foreign Exchange Dynamic has Key
Implications for Canada’s CRE Market

Weak Canadian dollar aids property performance and sales. The Canadian dollar is facing a confluence of forces that have weakened it relative to the United States currency, with important implications on Canadian commercial properties. A weaker Loonie relative to the American greenback supports Canada’s near-term tourism outlook, a tailwind for the hospitality and retail sectors. A weaker CAD and expected lower interest rates in Canada also appeal to investors from the U.S., who make up the largest share of foreign buyers in the marketplace. This foreign exchange dynamic and its effects on properties are set to continue, due to three key factors: lower interest rates relative to the U.S., currency risk perceptions and international oil prices. 

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