NEW YORK CITY-Prepare for 2014. Start building your capital war chests and shedding non-core assets if necessary to do that. This year won't quite be a wash, but you're best arming up for the growth year.

That's the message that comes out of Avison Young's recent 2013 Canada, US Forecast. AY chair and CEO Mark E. Rose, in an interview with GlobeSt.com yesterday, said that the Canadian market is picture of “strength stability and confidence.” And that confidence is fueling a market where players are virtually “free to invest or not, to take space or not.”

Which compares dramatically to the US, which is “just bouncing along the bottom,” says Rose. Much of that transactional funk is due to the ongoing lack of market confidence, perpetuated in large part by the folks in DC.

But this will be the year, he believes, where the problems of cliffs and ceilings will be worked out and as they come to resolution, position our GDP on a macro level and real estate confidence on a micro level to grow again, to “move up and unlock global decisions. And that will allow Canada to move up more.”

According to the report, Canada, is enjoying low vacancy rates in office markets, induced largely by the lack of inventory. In fact, “across the 12 Canadian office markets tracked by Avison Young, vacancy sat at 7.1% as 2012 drew to a close.

“By comparison,” the report continues, “the 17 US office markets collectively displayed a vacancy of 15.1%. A distinct gap also exists in the industrial markets, with Canada posting a vacancy rate of 4.7%, compared with 8.8% in the US.”

But “amid uncertainty and risk lies opportunity,” Rose stated in the report, and acknowledged that “there is much to be transacted in 2013 while strengthening positions for the future, as the ongoing issues domestically and abroad see some form of resolution.

“What we're recommending to clients is clear and consistent,” he continued. “Focus on building capital positions in 2013, perhaps selling non-strategic assets to fund a war chest, and arrange for access to additional debt and equity, as 2014 appears bright. Continue to execute on current plans in 2013 since the environment is likely to remain stable. Re-balance investment portfolios according to a five-year strategy horizon and adjust your corporate real estate occupancy. If you're financing or re-financing, seek longer-term maturities at today's unprecedented low rates.”