Commercial Real Estate Investment Blossoms Early in 2013
Global commercial real estate investment is booming early in 2013, promising a stellar year of returns for investors that hone in on the best destinations and properties.A new capital markets report reveals commercial real estate investment volume hitting $94 billion in the first quarter of 2013. Growth in the Americas was largely impacted by 6% year over year growth in Canadian commercial real estate.
One international capital expert commenting on the report points out the great significance of this almost $100 billion surge in what is normally a quiet time of the year for commercial real estate investment actively stating how it reveals the incredible demand for direct investment. It is encouraged by the increased ability of investment property owners to sell their assets elsewhere and take advantage of rising property values in core cities.
If this sector is picking up this early in 2013, it is estimated that we will be in for another record year. This is especially true with global investors really just beginning to get a taste for commercial real estate and debt again.This will be compounded as more residential investors make the leap over to commercial on concerns over single-family market and challenges of property management.
Meanwhile, the Euro crisis wave keeps rippling throughout the union scaring more capital into the skies while a lack of fundamentals catching on in the U.S. fail to instill real confidence. Just look at the disparity in returns between the U.S. and Canadian cities like Edmonton that are growing rapidly. Edmonton boasts among the lowest unemployment on the planet at just over 4% versus the United States, where there is barely a 63% employment rate and declining.
Despite attacks by the nation’s Finance Minister, Canada still boasts strength and leading commercial real estate returns on the world map, at least on any investment you would feel safe about investing your money into.
Experts and analysts are forecasting a commercial property investment boom for the entire nation to take action midway through 2013. This will take place in constrained Vancouver and Toronto markets. Individual investors may express concern that this might be bit too much of a gamble, but Alberta stands to keep on growing and outperform the rest no matter what.
Savvy investors with a keen eye on the fundamentals and developing trends are turning to Alberta because of its attractive haven for capital growth prospects and income. Alberta is also likely to continue to outperform global property the longest, which is another attractive quality.