New “Green” Trends are Changing the Game for Commercial Property Investors
New environmental and city planning trends are changing the commercial property landscape. These various trends and forces are converging simultaneously and altering where Canadian investors should expect to see the best return and growth trends in the near future. As a result, these trends are making it easier for new investors to participate in the benefits of commercial real estate investing.
Going Green Goes Mainstream
Earlier this month, Enbridge’s chief executive wrapped up a presentation for Calgary business leaders with a photo of a group of cyclists. This is perhaps the perfect picture to sum up how current changes in business, real estate and investing are uniting together. It’s an image of local community, teamwork and environmentally friendly transport all rolled into one. Going green is no longer just an ideal goal for a better environment. It’s becoming essential for businesses of all types, especially retailers. Governments around the world are mandating this trend as consumers are making environmental issues voting points.
The result of this trend is that communities are now implementing environmentally friendly transportation initiatives as a part of neighborhood planning. The LRT in Edmonton is dramatically being extended with walkability being prioritized by municipal government and property buyers alike. It’s estimated that more than 40% of workers will soon to be working remotely and video commuting. As these shifts become more commonplace the live, work, and play dynamics of communities will become increasingly more localized.
The trend of environmentally friendly urban planning will ultimately lead to a revival of local shopping. Traditional office spaces may be getting edged out, but brick and mortar local stores are definitely on the up-tick. From an investment stand point, this suggests local shopping plazas will see considerable growth and reliable cash flow in the times ahead. There are numerous investment vehicles available that are making it easier for Canadians to invest in local commercial real estate, while minimizing risk and maximizing returns. While this strategy certainly doesn’t offer much in terms of safety or growth, savvy investors are gaining much more traction towards their financial goals by investing in Canadian shopping plazas.
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