How Will Syria Conflict Impact Commercial Real Estate In Canada?
How will the current and larger looming Syrian conflict affect commercial real estate investments in Canada?
For those that haven't been tuned into the news over the last few weeks accusations of chemical weapons using in Syria have had U.S. battleship moving into position an imminent strikes declared. So will this new confrontation be good or bad for Canada and commercial real estate here?
One thing is pretty sure, and that is that oil prices will be headed up again and that will be good for Canada and the Canadian economy.
Continued conflict in Syria is likely to only spur more flight capital to hit the air, with Canada a top pick for it to land.
[caption id="attachment_1465" align="alignright" width="300"] Photo Credit: Mac Design Studio[/caption]
This is set to be even truer in this time around as the USA appears to be the only country to be stepping into the fray. Who knows where that could lead? More violence escalating which require US boots on the ground in the Middle East, which becomes more expensive and drawn out than expected, increased terror attacks in the US, assets being frozen by the US government, or even only a cloud of uncertainty hanging over the situation for months?
More than anything uncertainty can be more detrimental to world economies than anything else. In this case it is all only likely to be beneficial to Canadian investors. This is because Canada continues to stand out on the world stage as a neutral territory, with great protections for investors .
With the exception of anyone who has been hiding under a rock for the last year, it is pretty obvious that the best place to invest in commercial real estate in Canada for superior returns and security is Alberta. With Alberta a major oil producing province, this scenario will continue to strengthen the region and make it flusher with cash in the streets and at local shopping plazas.
There are still many options for investing in commercial real estate in Alberta. All sectors are on good ground and will naturally benefit each other. However building on current trends, with an additional capital injection and likely more visitors and possibly at least temporary residents seeking to escape the turmoil, retail should stay in the lead as the top performer.