The Effect of America's Economic War on Foreign Business and Its Impact on Commercial Real Estate

How will Obama’s new war against Canadian businesses affect commercial real estate investments here at home?

Before you jet off to Florida on vacation this year, it may be wise to take note of the U.S. President’s economic warfare campaign, and think twice about where you spend and invest your money.

It seems more Canadians flush with cash are taking the trip south to enjoy the sunshine than ever before. Even in destinations like Deerfield Beach, Florida, which have seen many Canadian tourists before, almost every other car could be seen sporting a Canadian license plate this season. Still, despite being huge contributors to the U.S. economy and one of the largest segments of investors in real estate, President Obama is still set on a path to punish and restrict the businesses which fuel this spending and investment.

After shutting down hope for the new Canada, Texas pipeline, Obama went on further to threaten Canadian businesses in his State of the Union address. Not only would he plan to levy hefty taxes on foreign companies attempting to do business in the U.S., he plans on penalizing any U.S. companies hiring foreign workers, which would obviously include Canadians. Besides the ego sting from being a huge slap in the face from one of our longest standing allies, we need to seriously think about protecting our own financial interests. Does it really make sense to be contributing to the person’s paycheck that is trying to take money out of your pocket?

In the short term, this could result in a lot more Canadian spending and investment at home. More money spent at Canadian retailers and salvaging the job shortage here and boosting the profitability of shopping centers, will certainly pay off for commercial real estate investors.

Clearly, a mentality and strategy of cutting off outside trade, collaboration, innovation, and investment is not a wise economic move. It could also hold back growth for our southern cousins even further. The good news is that this will only make Canada even more attractive for foreign investment. A growing number of foreign corporations and individuals moving in and visiting will only boost retail spending and profits, and drive up the value of commercial real estate in Canada even further.

This makes the next several months the perfect time to invest in commercial real estate in Canada, in order to lock into amazing cash flow levels, big profits, and growing equity. It will be great to see our neighbors turn around their economic situation and the whole world return to a more prosperous state. However, for the foreseeable future, the best investment opportunities appear to be at home amongst commercial retail properties in particular.

To find out more about profiting from commercial real estate in Canada, or to get more information on some of the opportunities that are available among shopping plaza investments, contact Howard today by phone on 866-986-8673 or via email at howardm@redevgroup.ca.

Thank you for reading.

Richard Crenian
www.redevgroup.com