If you've been following the trends, real estate, both commercial and residential, is hot all throughout Canada. For global commercial real estate investors, Canada should be at the very top of your list. The total value of Canadian commercial real estate transactions over the last calendar year was over $34.7 billion. A large portion of this was driven by foreign investors. Thinking about investing in the Canadian commercial real estate market? ReDev Properties is a commercial real estate asset management company, and we have properties all over Canada, including Saskatchewan, and know a thing or two about investing in commercial real estate. Keep reading to find out the benefits of investing in the Canadian real estate market.
Rise of the Inner City
Since the 1990s, both individuals and families have favoured concentrated metropolitan areas for their homes, as opposed to the residential communities and suburbs favoured prior. This trend is giving rise to a new approach to the commercial real estate market as well. More commercial real estate construction projects are based on the art world concept of curation. For investment partners, new urban commercial spaces are a great investment right now due to flexible and multi-use design. With the growing amount of people living side-by-side, shared work spaces, co-op communities and flex-use spaces offer more unique and exciting business opportunities to the people who live nearby. These multi-function inner city commercial real estate properties offer a diverse kind of income-earning potential that isn't available with traditional residential or single-use commercial investments.
Hot Toronto Market
Everyone in the investment market seems to want a little piece of Toronto. A partner who invests in commercial real estate in Toronto is almost guaranteed an occupancy percentage rate that's looking to last long term. This trend is going strong for office buildings, industrial spaces, hotels, and multi-family properties. Plus, with Toronto's job growth forecast, stable economy, and continuous condo construction projects, young professionals are attracted to city life more than ever, ensuring a return on your commercial investment. Toronto is also recognized as one of the country's two main economic and business hubs for the foreseeable future, the other location being Vancouver.
Strong Economic Forecast Nationwide
Toronto and Vancouver have recently been enjoying a payoff from ongoing finance and technology focuses. Other areas in Canada that have maintained more of a retail or resources focus have been struggling to keep up. But, that might just change. The markets in Montreal, Winnipeg, Calgary, Saskatchewan, and Edmonton, to name a few, are quickly rising due to strong emerging retail performance and more favourable leasing rates attracting an increase in investment attention. These areas are also ideal if you steer clear of the high bidding wars in the extremely competitive Toronto commercial real estate market, as these areas allow entering a market that offers a slower build with the promise of continued long-term gain. There are favourable commercial investment opportunities that can be found all throughout Canada.