Canadian investment returns for 2023 show retail improvement, industrial deceleration and continuing office value decline, as capital loss balances out income growth for a flat total return.

Newly released 2022 annual results of the MSCI/REALPAC Canada Property Index peg the total return on standing real estate assets at 1.3 per cent.

Investors are expressing confidence in sustained industrial rent growth, as new supply is not expected to catch up with rampant demand any time soon.

A 7.9 per cent total return across 2,367 directly held real estate assets in the Canada Property Index represents a 12 per cent improvement over 2020.