5 New Factors Pushing Commercial Real Estate Growth in Alberta
1. Canada Still Ranks in Top 10 World’s Best Performing Markets
According to a new report tracking Global real estate price increases over the last 5 years Canada currently ties for 7th place with Norway at 28.7%. This is actually perhaps better than claiming the top spots currently occupied by Israel, Hong Kong and China with frothy 54.5, 93.7 and 110.9% price growth respectively.
2. Other Countries Directing Investment Dollars to Alberta
With many Asian markets frantically trying to avoid a catastrophic bubble new restrictions and penalties are being implemented to prevent property flipping and keep out foreign investors. Thankfully it is driving many of those investment dollars into commercial real estate here.
3. Alberta a Top Recipient of Inbound Flight Capital
Loaded with cash from rocketing equity in their home countries, yet scared new government moves to ‘slow’ real estate growth will result in apocalyptic crashes individuals from all over the globe are heading to Alberta to invest their capital where it won’t be affected.
4. Alberta Has the Jobs
Alberta has plenty of jobs and many highly skilled workers from all around the globe making good money. While Canadians may have been a little looser with their spending in recent years than some should have there is still plenty of income floating around to support retail growth and returns for commercial real estate investors. This is one major advantage Alberta has over the U.S. and will make all the difference. Recent discoveries south of the border have actually cast more doubt on labor numbers being reported. 59 out of 60 recent jobless number reports have been revised higher by the government after the fact to show lower and improving unemployment. Unemployment numbers which new agencies and economists are saying should be reported 6-7% higher, or around 3-4 times that of Alberta’s.
5. Retailers Continuing to Grow
In addition to strong population and economic growth, executive director of the University of Alberta School of Retailing points to the affordable real estate in Edmonton as a major deciding factor for many international retail chains planning expansion here. Coupled with retail sales per foot almost 30% higher than the rest of Canada the returns are clearly handsome for both investors and retailers alike.