Alberta Economy Heating Up

The first of June and finally the sun came out, sure has raised havoc on the golf game but being an old farm boy it’s always nice to see it rain.

Interest rates are holding steady which makes it very positive for commercial mortgages. The oilsands is receiving a lot of investor hype from the Chinese and will no doubt add billions to the oilsand investment This bodes well for future immigration into Alberta and growth.

The climate for retail centres is heating up and we are getting a lot of interest in purchasing Redev’s (your) properties. We purchased 105th. 58th, Retail Centre some time ago and it has a big potential for upside . To date we are already 35% sold out so don’t miss out.

Howard Manley
Senior Vice President

3 Reasons Why You Should Capitalize on Canadian Commercial Real Estate

If you are looking to increase the returns of your investment portfolio, look no further than Canadian real estate. Several economic factors have been responsible for fueling the growth and opportunity in the Canadian commercial real estate market, however, here are 3 reasons you should seriously consider investing in Canadian commercial real estate for increased investment returns.

Increased Volume in Commercial Real Estate Investment

The volume of commercial real estate investment increased in 2010 over the volume produced in 2009. According to a report by CB Richard Ellis, the investment in commercial real estate throughout Canada grew by 48% in 2010 and this trend is expected to continue throughout 2011.

Higher Oil Prices = Strong Loonie

The Canadian dollar is strongly tied to oil prices. As the price of oil continues to increase, the Loonie will continue to increase in strength over other foreign currencies. A stronger currency is often seen as a sign of economic health and stability, and will often spark increased investment from foreign investors and ultimately leads to increased demand for commercial real estate.

The Development of Calgary as a World Class City

Calgary has been steadily labelled as an Alpha city of the future, which is sparking growth and investment from many foreign companies and investors. Recently, Calgary was ranked the #1 city for the best quality of life, and was also recently voted the #1 place to live and work in Canada. When you consider these factors, in addition to the fact that Calgary is considered one of the World Capitals of the future, you can quickly see that the demand for commercial real estate is only set to increase with time.

If you are serious about taking advantage of Canada’s commercial real estate market, and generate stable returns for your investment portfolio, don’t delay! Start generating cash flow today

Richard Crenian
President

Retail Competition Heats Up Promising Improved Outlook For Commercial Property Investors

Retail competition is heating in major Western Canadian provinces, signaling even better returns and growth for commercial real estate investors.

The statistics hitting the news headlines over the last few months have shown incredible growth in the retail sector. This is not just limited to retail sales booming, but also vacancy rates dropping and appetizing returns being realized by commercial real estate investors. However, in cities like Vancouver, Calgary and Regina we are still just seeing the tip of the iceberg with continued buoyant growth expected over the coming years.

Much of the movement in the retail sectors in the Western Canadian provinces is of course coming from a combination of westward migration, as well as the importation of many US and foreign brands, as Canada’s new world cities draw attention from around the globe. According to one news segment, a top bank economist has predicted a competitive fight between Canadian and other retailers, as foreign chains move in. Many of these will be able to compete heavily on price, and are attracted to Canadian cities like Calgary and Vancouver, because the price of goods is so high here in comparison. From cars to sports shoes to computer equipment as well as regular consumer goods, Canadians often pay 20% more than their counterparts south of the border. A battle over retail space by more and more retailers clamouring for room to sell their wares is sure to squash vacancy rates and pump up rents. The tales of Tiffany’s, Target, Marshalls, Crate and Barrel, and Victoria’s Secret moving in have been widely publicized, with 7 of 10 of the United States’ top retailers planning to expand into Canada.

Think this sounds like a little too much shopping? Not by a long shot. In fact experts say that Canadians have long been under-served when it comes to retail. Estimates put the US at 23 square feet of shopping floor space per capita, while here in Canada, we are closer to 14 square feet per capita. So there is still plenty of room to grow, especially if goods do become slightly more affordable.

This all means much better returns, consistent income, and healthy equity growth for commercial real estate investors who are investing in the retail sector, and specifically in shopping centres and plazas around Western Canada’s major cities, including Calgary, Vancouver, Regina, Victoria and Edmonton.

Fortunately, while things have already been improving in the commercial real estate world, there are still plenty of great deals to be found for those looking for passive income and capital appreciation, if you know where to look; though there is no doubt that now is the time to lock into the best opportunities, before they go up in price.

To learn more about commercial real estate investment in Canada and to view some of the great opportunities that are available contact Howard today. You reach him by phone at 403-630-4544 or by email at howardmanley@shaw.ca.

Richard Crenian
President, Redev Properties Ltd.