Tag: retail property

Media, News

Commercial Real Estate Shows Little Fear with Talks of Recession Appearing

Towards the end of 2018, we saw a slow down in US GDP which has had its share of ramifications on a grandeur scale. These numbers could be an indication of a potential recession heading to Canada. For a surfeit of industries, a recession can vastly impact their market, causing significant loses. Ergo, key planning is vital.

 

Recessions impact every market differently. There are those that are swept away by the quick current of financial demise and there are those that are heavily insulated; showing little to no slow down. The tech sector and smart retailers are among the heavily insulated industries, boasting little impact in regards to the former great recession. What does this mean for commercial real estate investors and tech sectors alike?

 

Granting all of this, these industries are comprised of traits that can keep them afloat through a financial crisis. Well-positioned commercial property owners, specifically, can see little to fear yet again should another recession arise. A plethora of retailers are beating out analysts’ forecasts. Loblaws is a prime example of a commercial retailer thriving with increases in both revenue and net profit. The harmonious merge with a tech team has allowed them to grow without compromising their physical stature.

 

Another key component that commercial real estate possesses is physicality. Although consumers can purchase pretty much anything online nowadays, there is still an enticing aspect of taking a trip to the local shop. Service plays a major role in this, with a majority of shoppers returning to brick-and-mortar places for the personable service offered. In sum, despite growth in e-commerce, commercial real estate is still thriving and through a global financial crisis, they still reign as heavy-hitting contenders.

 

Read more about how Canadian Commercial Real Estate is withstanding the test of global and economic issues: https://www.redevgroup.com/news-article/technology-smart-retailers-insulating-canadian-commercial-property

Media, News

Retail Real Estate: A Worthwhile Investment Going Strong in 2019

When deciding where you want to invest, it’s imperative that you conduct a significant amount of research into various investment streams in order to ensure you are making the optimal choice for your needs. Some investments, such as stocks or opening your own storefront, come with some potentially high risk and can be vastly time-consuming. Albeit, these investments have proven successful for a plethora of individuals, however, some are still in search of opportunities to allocate their funds elsewhere.

 

Despite the rise of e-commerce businesses, shopping plazas are still going strong. Malls continue to be filled with eager shoppers, smaller plazas continue to see visitors coming for niche products they may not get elsewhere. Similar to any other investment, retail properties require a high-degree of time, research, and planning. Location, space, and size are amongst some of the factors one must keep in mind when considering a retail property and returns are often contingent on said factors. For example, a shopping plaza in Toronto’s downtown core will cost more than one further out from the city, however, due to a higher saturation of potential consumers in the downtown core, the ability to generate significant profit within a shorter time frame is plausible.

 

Aside from the aforementioned factors, there are many surfacing trends that are contributing to the continual success of retail shopping plazas. From the rise of cannabis post-legalization to massive retail giants pledging astronomical funds to aid the growth of retail real estate, there are several indicators that pose benefits for shopping plaza investors.

What is driving the retail world to success currently? Why is an investment in retail real estate beneficial? Read the full article here: https://www.redevgroup.com/news-article/it-pays-to-be-in-retail-5-great-signs-for-shopping-plaza-investors

News

Adding Local Shopping Plazas To Investment Portfolios – Richard Crenian

Although direct investment in this asset class may float under the radar of many individual Canadian investors and families, it comes with many critical benefits. Those benefits may be even better for those getting in right now, given new investments in related enterprises and the strong demand for Canadian real estate from the investors around the world.

Yes there are many charities to support around the world. There are also nice-looking, cheap condos to retire to abroad. Yet, when it comes to investments and establishing a business why not do it close to home?

Canada’s shopping plaza outlook is positive, especially if Canadians continue to invest and support their local economies. As stated by provincial Alberta based grocery chain Freson, “there’s really nobody championing Alberta products, Alberta producers. We’re Albertan. We’ve been here for 63 years”. The Freson Bros. and other Canadian investors believe the outlook is bright for small businesses and home grown products, if their given the attention they deserve. That investment comes back to us in many ways, financially and in community.

Ask billionaire investor Sam Zell the secret to making money and smart financial moves. He’ll tell you it’s all about supply and demand. The world loves Canada, the investment opportunities and the future it offers. It only makes sense that we see that benefit from being involved in supplying the demand, and not just giving it all away. Foreign homebuyers just can’t get enough of our properties nor can commercial real estate investors. Even Peter Thiel’s new venture capital firm Atomic VC is focused on Canada and its talent with its investment in Terminal.

If there is one thing we all need, and will only need more of in the future (besides air and water) it is passive income. Too few investments offer reliable streams of truly passive income with good returns. Shopping plaza investments can offer the passive income that we need.

Commercial property investments in these assets are also great for facilitating wealth growth. This can be organic or controlled by redevelopment, improvements and smarter leasing and management.

Real estate is a hard, tangible asset. While global markets may boom and bust, and even individual assets may fluctuate in value over time, these properties have concrete value and income potential. In tough economic times local shopping plazas are typically the last to take the hit and first to bounce back. This can be critical for those looking for reliable retirement investments.

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