Savvy Investors Have Their Sights Set On Alberta
Despite rumors of overbuilding and overpriced housing in other Canadian provinces the latest round of real estate reports show a strong long term outlook for Alberta, particularly for commercial property investors in Calgary and Edmonton. Strong economic growth in Alberta has fueled increased demand for industrial real estate including warehouses and distribution centers. This has driven down the industrial vacancy by 53 basis points since the beginning of the year to just 4.27% in March. That’s despite a healthy 678, 595 sq. ft. of new construction hitting the market already this year, though experts forecast stable vacancy rates and lease rates for the foreseeable future.
Energy and industrial may be the backbone of Alberta and the only thing keeping Toronto afloat as a beneficiary of the cash flowing out of Alberta but all other sectors are performing well too. With U.S. property losing its appeal, Brazil and India failing to impress and tensions between the West and Russia at perhaps the highest peak since the cold war office, retail and housing in Alberta continues to benefit some an influx of business, investment and capital. Even China with its precarious bubbling real estate market is seeing a large amount of flight capital leaving along with a surge in manufacturing and other business headed westward where overall production and shipping costs are now less expensive.
Office vacancies on quality properties in Calgary are literally non-existent at 059%, the lowest in 6 years. Projections forecast this figure to remain below 3% for at least the next 5 years. Strong office numbers on top of industrial means housing is staying up and retail spending is too. In fact despite a 2% year-over-year price increase and an almost 30% jump in sales volume, Realtors in Alberta continue to comment on price wars, multiple bids and report many sellers still holding off listing in anticipation home prices will rise further. Still consumers say property prices are too attractive to pass up on even for single person households and are finding buying far more affordable than renting. Still, regardless of all of these positive figures savvy investors still have their sights set on retail properties.