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

Multifamily assets posted the largest year-over-year decline in net operating income among the four major sectors in the Canada Annual Property Index, while delivering a 7 per cent total return on investment for 2021.

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.

A ten-year run of capital growth abruptly reversed, resulting in a 7.8 per cent loss of value across the 2,356 assets that the 44 portfolios represented in the Canada Annual Property Index hold.

Newly released 2020 investment results find industrial and multifamily assets on the positive side of the national average total return for 2,356 directly held standing assets, which registered -4.1 per cent.

A surging industrial sector helped to counterbalance slipping retail values and push up 2018 investment returns on Canadian commercial real estate.

Residential was the only sector that could boast capital growth in every market where institutional investors represented in the Canada Property Index hold properties.

Robust economies in Toronto and Vancouver, a continuing slump in Calgary, retailing challenges and sustained high demand for rental housing all play into an index-wide total return of 6.7 per cent.