For those who have been waiting for just the right time to jump into a new commercial real estate investment, the next few weeks may be just that time.
Besides the global and macroeconomic factors that are making commercial real estate in Canada so attractive right now, the upcoming Holiday Season may present even more appealing deals for investors looking to lock into great income producing investments.
Why now? While commercial real estate in Canada has been hot for most of the year, the cooler weather often has an equally cooling effect on commercial property sales, even though it is just temporary. When the snow hits hard, many snow birds get moving south to enjoy the warmer weather and sunny skies. Add to this the preoccupation with entertaining, Christmas shopping, and difficulty seeing properties due to weather, and this means far fewer buyers and investors looking and making offers on properties than the rest of the year. Similarly, many real estate agents also take time off, even if it just means staying out of the office and taking forever to return phone calls.
The end result is that sellers become increasingly nervous about the prospects of selling their buildings quickly, and for the prices they were asking. All of a sudden, even those who were in no real rush to sell and whose tenants are doing OK from the seasonal increase in retail spending, find themselves with a whole new level of motivation to make deals.
Even though the Canadian commercial real estate market is still hot right now, discounts of tens or even a couple hundred thousand dollars can make a huge difference in returns for investors both in the short term in the form of income, and in the medium or long term when cashing out.
Investors worried about upcoming taxes being due or who haven’t organized themselves and their assets in the best way to limit tax liabilities will find commercial real estate offers the ideal solution for added protection, and lowering liability before the end of the year cut off.
Where should you look? Vancouver and Calgary have obviously hogged many headlines this year when it comes to improvements in the commercial real estate market, rising retail figures, jobs, and above average returns for investors. However, more forward thinking investors are now increasingly looking to cities like Edmonton for deeper spreads and the promise of bigger profits and returns over the next few years, where the largest growth is expected.
The bottom line is that no matter how much you have to invest right now it is definitely worth taking a look around at some of the commercial real estate deals being offered and analyzing the benefits of acting now versus in the new year.
Want to learn more about how you can profit from commercial real estate in Canada or get more information on some of the great opportunities that are available? Contact Howard today by phone at 866-986-8673 or email him right now at howardm@redevgroup.ca.
Thank you for reading.
Richard Crenian
www.redevgroup.ca
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