In Canada, IPD says industrial properties showed returns of 2.3% compared to 7.6% for offices and 6.4% for residential. Retail, on the other hand, trailed all categories with a loss of 0.1%. In Australia, industrial returns stood at 2% compared to 2.7% for offices and 0.7% for retail. Residential properties were not included in the Australian study.
The overall Canadian market saw a return of 3.7% for 2008, down sharply from the 15.8% recorded in '07, and the lowest level recorded since 1994. But IPD points out the general investment real estate sector still outperformed equities and REITs, which saw returns of -31.4% and -39.3%, respectively. On the other hand, real estate trailed bonds ,which returned 15.2%, as measured by the JP Morgan 7-10 Year Government Bond Index.
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