Commercial Real Estate Trends
Investors that yield the biggest wins are those that are good at identifying future trends and acting on them. So how are the business, property and investment landscape changing? How can Canadian investors and commercial real estate owners get ahead of the curve?
The dramatic new water cuts in California highlight that some destinations have gone beyond just stretching resources, to becoming outright expensive and unsustainable. Cities, landlords and homeowners in California and similar destinations are going to have to figure out how to live on less water. Sustainability also equally applies to energy use, materials and business practices. We should expect to see more regulation demanding more efficiency and buyers and tenants demanding more efficient and affordable buildings.
We’re Going Nomadic
Beyond simply heading south for the winter and province hopping for jobs and real estate deals, a huge percentage of the world’s population is becoming more nomadic. This will have an impact on which units and features are in the most demand.
Local shopping is about to take off again. Between the need to conserve travel time, gas and the need to be sustainable, it is clear that more individuals will resort to shopping locally, more often.
Influencers and sophisticated branding and marketing experts are forging a new direction in user experience. This is gradually making its way into retail, property development and much more. While there may be more local shopping most of the time, this trend will also put a premium on destination experiences. Consumers will pay more for urban apartments to be in communities that resonate with their values and business people will frequently be drawn to where innovation is happening.
The Cycle Will Turn
So far Canada has been the only nation to successfully avoid a real estate crash. That may continue to be true but interest rates will surely change, causing different areas to rise and fall in popularity. You need to know where the current trends are heading in order to time your investments and design an appropriate strategy.