Investment in Canadian commercial real estate is expected to hit a new record high in 2018. Investment in Canadian commercial property set another record in 2017, beating that of 2016. The Financial Post forecasts yet another record year in 2018. The convergence of several trends, need for better investments, and unique opportunities are all expected to increase investment volumes over the next 10 months. According to the data, over $43B was invested in Canada&#x27s commercial real estate market last year. Three big bumps this year are expected to come from:

  1. Institutions who are expected to increase real estate holdings by 20%
  2. Foreign investors and new residents bringing their capital to Canada
  3. Individual investors breaking away from the stock market

More visibility, awareness and attraction to this space is expected to be created by a large variety of cryptocurrency promoters who are already trying to leverage the benefits of commercial property investment as a back bone for highly volatile digital money. Many players and companies are rushing to be the first in their niche to accept bitcoin or offer unique coins of their own. This includes a Calgary home renovations company and real estate brokerage Barclay Street. Western Investor also expects investments in Canada commercial property to be highly profitable, and not just popular. The news site says that returns could be as high as 15% this year, and points out that there may currently be some great and discounted acquisitions in this space. Especially in retail. The Canadian market is currently experiencing record low vacancy rates, and record low unemployment. That&#x27s great for retail property performance. However, we are also in a highly transitional phase, where old strip malls are being reinvented as mixed use destinations to live, work and play. Those who have the know how and experience to redevelop existing properties and update them have the ability to capitalize on this moment for great rewards.   Summary 2018 is shaping up to be an exciting and profitable year for investing in commercial real estate in Canada. There are many factors working in favor of investors in this space. This may be especially true in retail property and for developers who are adding value and are participating in and driving the remaking of where we live, work, and play. This current trajectory is likely to last well beyond 2018, but the best rewards are certain to go to those in first.

Leave A Reply

Skip to content