Alberta is experiencing intense investments in the commercial property sector. Recent analysis report that commercial property investment was considerably strong well into the 4th Quarter of 2018.
Yearly results show a vast improvement over the last year.
The extensive totals reflected in 2018 were largely impacted by a significant transaction in the office sector which included several apartment sales that were previously negotiated. The primary factor is that the market interest presented in 2018 will likely trend throughout 2019.
Commercial Sector Prospers Amongst Vacancy Spikes
Commercial real estate will continue to flourish throughout the year. The economy in Canada, specifically Toronto, is splurging, as commercial sector vacancies are extremely low. The demand for retail, industrial and other commercial property is on the rise but supply is low. Price and competition are fierce.
Investors are finding it challenging to locate available space in Canadian cities. Options are few for spaces greater than 10,000 square feet. Capital is efficient, as there is no shortage of it at this time. 2019 is set to be a prime year for investors.
Due to its diverse economy, Toronto is the safest risk for investment funds. The city is Canada’s largest and most established economic centre. Moving forward, commercial sector values will continue to increase. It is an around the clock, state-of-the-art city, which secures investments. The city is flourishing and has earned a name for itself as a vibrant and rewarding mark of Canada. If seeking a safe investment, Canada is the place to seek commercial retail real estate.
According to PwC, Canada has seen a tremendous spike in real estate associated with the tech sector. It’s in close competition with Silicon Valley in regards to tech companies. CBRE ranks the Canadian city, Toronto fourth in most important tech hub in North America. This is a large improvement from 12th place ranking just two years ago. More than 80,000 tech jobs have been created throughout Canada over the past five years. This is the most tech jobs created by any city in North America.
Though the demand is high and steadily increasing for commercial real estate, many companies can’t find sufficient space on the market. This issue is expected to continue throughout 2019.
Investors: The Climate for Retail Investment
The Canadian retail scene yields to customer experience in 2019. Investing boasts in the tech sector, as retailers strive to appeal to millennial practices. Their goal is to develop and improve physical spaces and digital market shares while searching for an alignment in the reciprocal rapport between clicks and retail spaces.
Confidence in the influx of investment in the Canadian commercial property market will remain vigorous throughout 2019. The retail sector will experience valuable performance in spite of potential risks from inconsistent leasing trends. A primary contributor of this projected strength is founded in the increased buying power essential in a continuously convalescing economy.
As expansion in sales continue to advance, prospective growth or repositioning of retail real estate is projected to produce strong interest within the investment sector this year. Contact ReDev Properties Ltd. for your Canadian retail investment needs.