Western Canada’s commercial property market is poised to outperform the rest of the country after a strong 2013, according to Morguard’s 2014 Canadian Economic Outlook and Market Fundamentals research report.

Western Canadian markets — which includes Winnipeg, Saskatoon, Regina, Calgary, Edmonton, Vancouver and Victoria — are expected to benefit from the stronger economic trend, which will drive stronger performances in the regions’ commercial property markets.

Investors will continue to look west for growth, in an effort to capitalize on a region that will outperform the eastern cities on average over the near term.

“Western Canadian commercial property markets are expected to continue to outperform, as commodities demand helps produce economic growth that is superior to the national average,” says Keith Reading, director of research at Morguard. “Western Canada will continue to lead the nation in economic activity this year, supported by resource-rich markets.”

Some trends to watch include:

• Construction activity will rise over the next few years. In the office sector, development activity will rise markedly in Winnipeg, Vancouver and Calgary. Retail construction activity will rise in Alberta, with a range of retailers ready to move in. Industrial development is on the rise on most markets, given a strong outlook for the sector. Purpose-built rental development will be met with sufficient demand to justify investment.

• U.S. retailers, such as Target, will continue to look to western cities in light of the relative buoyancy of their economies.

• The multi-family residential real estate sector will continue to stabilize, as rental buildings remain largely full. However, competition from the rental condominium market will remain high through 2014.