Alberta's Commerical Real Estate Market Is Booming. How Can You Capitalize On It?

Experts from all sectors are predicting Alberta will continue to lead the Canadian economy in 2012. In fact, it could easily be one of the most attractive destinations on the planet for investing, especially when it comes to commercial real estate. So what is the best way to capitalize on this growth, and tap into the great returns other investors are already enjoying?

Between the strong energy backbone (anchored by the oil sands) to the solid financial system and influx of foreign businesses and consumer confidence, the only potential concern is that perhaps Alberta is recovering from the last 3 years or turmoil a little too well. However, when you dig deeper, the economic growth rates here are not off the charts. They are positive, but not so hot that they suggest another bubble is imminent. Predictions from the Royal Bank of Canada put growth for 2012 at 3.9%, following a modest 4% for 2011. If anything, the last few years have been a minor correction or a part of the aftershock and fallout from the disasters in other countries around the globe.

Besides energy, what Alberta has that really makes the difference going forward is jobs. This is something that has been a huge roadblock to financial recovery in other countries. Jobs are plentiful here and pay is good, meaning disposable income levels remain strong. In fact, retail spending far out performed the United States. HR experts are saying that the worst case scenario we would see a return to pre-bust conditions.

With continued migration into the province, expansion by Canadian companies, and an influx of foreign flight and investment capital, retail properties continue to be the most attractive for the majority of investors.

Investing in a shopping center offers many benefits. They provide both income and capital gains, built in diversity, simplicity, and are predicted to continue to provide above average returns for investors. These retail investments offer more cushion against economic fluctuations, especially when so many other types of investments in Alberta are tied to energy prices. While you will certainly want to employ the assistance of a professional property management firm to assist with maximizing your investment, shopping centers are pretty straight forward and don’t require you to gamble on a type of investment you don’t fully understand.

Alberta is a large province, so where should commercial real estate investors focus their search for the best opportunities? Calgary, Calgary, Calgary is all we seem to here in the news, and although it is certainly a great place to invest, it often pays to stay ahead of the pack instead of following in the footsteps of those who have already scooped up the best deals. This is why the more knowledgeable commercial real estate investors are now setting their sights on Edmonton. In contrast, Edmonton is far more affordable in many ways, leaving more room for profits and returns. It is also easier for smaller, private investors to enter without sacrificing security or growth prospects.

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.com