What Drives the Market, As Told by Real Estate Investment Advisors

real estate investment advisors in Edmonton

It’s a widely known fact that real estate represents a significant portion of most people’s asset. While most of these are derived from residential holdings, a new trend, investing in commercial properties is becoming popular. Commercial properties speak to the stability of real estate: land is not going anywhere for the foreseeable future, and is only continuing to grow.

Investment properties provide large returns for savvy investors looking to earn a piece off  lucrative and quickly growing real estate market, especially in cities like Edmonton, Canada.

Here are the factors real estate investment advisors consider when growing their investment portfolio to gain the most returns.

Shifting Demographics

This is data that describes a population: age, race, gender, income, migration patterns, and population growth over time and are popular metrics used in determining demographics. Often overlooked in assessing the value of a potential commercial real estate investment, the surrounding demographic of a property also help determine its value.

For instance, the growing number of millennials entering the workforce means their distinctive preferences will play a vital role into which areas will become up-and-coming trendy hotspots worth investing in.

Going Urban

As more cities develop and boom, consumer preferences have shifted towards urban settings. Rather than deal with lengthy commutes, the younger  workforce now choose to live, work, and play all in close proximity. This growing trend has reinvented urban communities as trendy places, which, in turn, accrues towards the value of commercial properties in the area. These include office and retail spaces frequented by millennials, which real estate advisors can help you cultivate as profitable investment properties.  

Shrinking Offices

Added to the urban trend and demographic shift are economic changes that have caused offices and companies to shrink. With the rise of the startup culture, small and large companies alike have been hard at work to embrace more of a social, open work setting. Open office concepts mean there’s less designated space occupied, and there’s more space to lease. With this, investors can reap higher returns in commercial assets they’ve invested in, thanks to the increased number of tenants paying rent.

Economic Growth

Canada’s economy continues to flourish and set a stable backdrop for investments to grow, making it prime to invest in commercial properties at this time. With a stronger economy, more businesses are able to thrive, resulting in commercial and industrial developments that real estate investment advisors can drive the value of.

Interest rates in growing investment areas like Edmonton remain low. But as more commercial properties are developed, real estate investment advisors note it’s the best time to invest. This allows investors to reap high returns over time as interest rates are poised to increase in urban and commercial areas, in and around the city.

Foreign Investments

Canada’s stable, but continuously growing economy has attracted many foreign investors looking for investment opportunities, such as Edmonton. Partnering with seasoned real estate investment advisors, these partners have begun to profit in the country, turning Canada into a preferred designation for international capital investments around the globe.

Real Estate Tech Innovations

The proliferation of technology itself has allowed many industries not just to grow, but reinvent themselves, and the same holds true for commercial real estate. With new technology, real estate investment advisors can  streamline transactions and management processes Improved efficiency in driving the value of assets has inspired a positive effect on overall returns.

With Edmonton’s commercial real estate space yours for taking, don’t miss out on its up-and-coming, and potentially highly lucrative investment properties. Get in touch with our real estate investment advisors today to learn about the most rewarding opportunities in the area!