The recently released report, the ‘International Investment Atlas Summary 2010’ from Cushman & Wakefield places Canada seventh in global investment in commercial real estate. Even better, this report shows that commercial real estate investment volume is up 150% over the previous year!
The other leaders in this study included:
1. China
2. USA
3. UK
4. Germany
5. Japan
6. Hong Kong
While China is certainly huge and attracted about $200 billion in commercial investment, it obviously has it’s own complexities when it comes to investing for the average individual. Plus, government manipulation of the market and the threat of sweeping changes at any moment are always scary. Obviously the US made it on the list from sheer size, not because of performance which continues to weaken. While similarly the UK, especially London, an old favourite, finds its way on the list due to the incredibly high prices, even though it is also still battling the credit crunch in a big way. Germany may have seen impressive economic growth recently, but it is not the easiest of countries for foreign investors to try to invest in, and definitely presents a number of challenges including the high cost of entry. Then there is Japan which is going to be a seriously scary place for anyone to put their money for a long time due to the recent tsunami.
The report further praised Canada for having one of the most stable banking sectors in the world, and pointed out the improvements in employment figures and the stabilization of commercial rents. In fact they did not go far enough to recognize that cities like Calgary are currently sitting on an almost zero vacancy rate in the retail sector.
What does this all mean for Canadians who are looking for the best place to invest their money? Clearly for many reasons Canadians are much better off keeping their money at home these days, and will also see their investments further boosted by outside attention from foreigners looking to capitalize on the country’s strength and growth.
Commercial real estate investment is a fantastic choice for those looking for an income investment and equity growth in a vehicle that provides great security and solid returns. While every commercial property and area is slightly different, recent official reports have put the average returns for commercial real estate investors as high at 11-15.7% in places like Vancouver and Calgary.
The retail sector in the Western Canadian provinces of British Columbia, Alberta, and Saskatchewan in particular, offer many great opportunities for the individual investor looking for a safe and secure place to put their money to work for them, while realizing above average returns. This has led many of the most savvy investors to start picking up more and more retail properties, such as local shopping malls and plazas.
Want to learn more about how commercial real estate, or get information on some of the great deals that are available? Contact Howard Manley of Redev Properties today by phone at 1-866-668-7344 or via email at howardm@redevproperties.ca.
Thank you for reading,
www.redevgroup.com
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