Image Credit: DaveBloggs007 Canada continues to be one of the most popular international destinations for commercial real estate investment. Institutional investors have come to realize that Canadian commercial real estate offers many benefits over other international markets, including: Safety & Familiarity Canada and its leading cities of Vancouver, Calgary, and Edmonton are known around the globe. Canada is well respected for its strong property laws, as well as its consistent real estate performance and investor protections. The fact that English is widely spoken throughout the country is also provides a great comfort level for international investors. When viewed collectively, the safety and familiarity of Canada makes investing in its commercial real estate markets far more appealing than the next emerging hot spot'. No promises of exotic returns are worth the gamble if your rights to ownership or the preservation of your investment capital are in jeopardy. Savvy accredited investors know that safety is critical when it comes to resale, financing, and leasing of property as well. Due to the variety and attractiveness of the investment options here, exiting commercial real estate in Canada can be easier and more profitable that smaller boutique markets. Financial Strength In addition to the above, Canada is regarded as having one of the strongest and most stable banking and financial establishments on the planet. This not only helps to provide consistent market performance, but it instills confidence in the minds of global investors. Although global real estate markets will always be influx, but those with shaky finances can suffer a devastating collapse. Growth Prospects Canadian commercial real estate still enjoys great growth prospects, as population density remains low, employment rates are strong, and the country enjoys a diverse economic with energy, exports, and now technology playing an increasingly larger role. Global brands and corporations continue to flock to Canada, especially in its trending western cities such as Edmonton and Calgary. All of this helps support the performance of Canadian office buildings, retail malls, and mixed-use properties. Short, Mid-Term & Long Term Investment Western Canada is still growing heavily and is quite feasible that this upward trend will continue for at least another decade. Investors have been unable to match the level of inventory, quality and demand for commercial real estate throughout western Canada in other markets. Specifically, local cap rates are more attractive in Alberta than the rest of the country, especially when compared to other major markets such as Vancouver, British Columbia. This growing trend will result in consistent income opportunities and an abundance of exit opportunities for investors. Summary Canadian commercial real estate continues to offer great benefits for investors from around the world. The current uncertainty within the stock markets, political unrest and the Brexit are all likely to help boost this investment vehicle in the years ahead. There are currently attractive opportunities for yield and capital appreciation as national trends develop and it is becoming increasingly more difficult to find another destination that offers such a combination of perks for sophisticated investors.
- July 15, 2017
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