Our assets are located in major markets across Canada. We identified Alberta as an outsized position with an uncertain economic outlook so reduced our exposure there. We’ve since captured new opportunities in Ontario and Quebec.
Since we made this move, oil demand plummeted during the COVID-19 pandemic. Oil is also being rapidly replaced with a desire for green energy alternatives. Because Alberta’s property value is highly correlated with its oil supply2, its outlook is becoming increasingly uncertain. Demand for office space has become concentrated to major markets and reflects the shift in property value and rental rates in those locations3.