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March 11, 2019 - Blog Article
Investing in Commercial Real Estate Revitalizes Business and Increases Returns

Investing back into your commercial real estate presents business growth and development opportunities as value is directly impacted.

 

 

Canadian real estate has reaped the depth of investor returns in a margin of more than 400% for more than 10 years. This increase doubles that of the U.S. commercial real estate market. It is a number that is almost three times the investment return of the Toronto Stock Exchange.

 

 

In spite of the numbers, Canada faces issues of productivity that may cause a negative impact on the performance of commercial real estate. The impact could also affect Canada’s standard of living.

 

Poor Productivity in Canada Effects Real Estate Performance

 

Labor costs in Canada are significantly higher than it is in the United States. This factor presents a threat to the manufacturing industry. The potential loss of jobs and business re-shoring are other possible negative consequences.

 

Information technology has seen increased investments from commercial, financial services and oil agencies. This increase has averaged nearly 70% of the amount invested by U.S. equivalents.

 

Overall, productivity in Canada is just over 20% lower than the numbers produced by the U.S.

 

Progression of retail spawns expansion in logistics and supply centers. The robust growth of the retail industry led to an increase in demand for products on the Canadian market. The result is that both warehousing and delivery markets have spiked. Retailers are responding to this spike by investing in new or developing existing commercial space.

 

Demanding activity on the market motivates investors to construct new real estate. The end-goal is to acquire long-term occupants for the retail space and according to Financial Post, Canadian’s real estate market has an extremely low vacancy rate, which increases the demand for commercial real estate space.

 

 

Build for the Future to Provide the Value That Retail Owners Seek

 

New and current retail spaces must answer the call of the future. Innovative measures in design and functionality are the foundation of retail spaces. Close or narrow the gap in productivity by investing back into Canadian businesses.

 

For investors to remain competitive, they must take their commercial retail buildings to a new level. Tenants are revamping the way they utilize space. Pricing discrepancies expand as businesses seek innovative options in retail space. This is a trending concept that impacts the Canadian commercial market as a whole.

 

Technological advances are causing a shift in the way people utilize office and retail space. Employees are working remotely and utilizing technology to keep them connected to the office. Office space design is evolving to meet the needs of today’s workforce. Technology equipped retail spaces deliver a better environment for increased productivity.

 

Summary

 

Investors must be proactive in their response to the swift change in commercial real estate. Changes are taking place in demographics, financing and other critical influences. It is imperative for businesses to have clarity about the existing and imminent opportunities in an effort to thrust efficiency and performance. Find out more about Canada’s retail opportunities from ReDev Properties Ltd..