According to Canada’s Real Estate News Exchange (RENX), investment in commercial property hit a new record high in the first six months of 2018, at $26.8 billion. That could put the entire year well above the annual record set in 2017 of $43.1 billion.
Current appetite for investment together with the safety and yields Canadian commercial property offers leads experts to believe that this trend is unlikely to waiver in 2019. Everyone wants a bit of the action, including big tech giants like Google.
While many analysts and biased promoters are doing a smooth job of downplaying the risks in these other markets and sectors, individuals need to be realistic about the dangers and look at the data for themselves.
It’s true that while commercial properties may offer brick and mortar security, the yields on many prime properties are trading low. Yet, many will find greater returns and yields in more localized properties just out of the center, and in more suburban and secondary markets. Of particular note, according to RENX, the reinvention of retail and spending patterns are expected to keep boosting retailer expansions at the discount and luxury ends of the market. Furthermore, mixed-use properties with retail and apartments could perform well, as vacancy rates dip below 3% and encourage rental rate increases.
Read more at https://www.redevgroup.com/news-article/investing-commercial-property-surges-but-will-canadians-bring-capital-home-in-time