While U.S. headlines have been full of stories of Canadians buying up foreclosure properties south of the border, there has also been an increase in the number of Americans moving north to Canada. This trend will ultimately result in better returns for commercial real estate investors in Canada.
The year 2011 saw a huge jump in the number of U.S. brands expanding their presence into the Canadian market. The new large department chains have been appearing in new markets all across the country, with brand names like Tiffany’s and Victoria Secret claiming their places, as well as entertainment giants such as the UFC. While their emergence has brought new jobs to Canada, there has no doubt been an influx of American executives moving in as well.
What is more interesting, and perhaps more important to Canadian businesses and commercial real estate investors, is the number of individuals packing up and making the move. Online forums are packed with enquiries about immigrating to Canada, and news organizations like the Boston Globe are reporting that families make the change in search of a better life here.
Why the move to Canada? Boston.com reported that the interest is partially driven by the housing market. Too frightened to jump into their local housing market, as home prices are predicted to continue to fall in many U.S. markets, some families are giving up on purchasing a home in the U.S. and are looking for a more stable economy in order to create a more secure financial future.
There are others who are making the move to Canada because of the growth in the job market. Recent official unemployment numbers in the U.S. have dropped to 8.5%, but it is common knowledge that a large part of this statistic is due to the fact that many individuals have simply given up on looking for employment and have ceased to qualify for continued unemployment benefits. Canada makes for an easy transition for many American families as the laws, language, and lifestyles are similar.
This influx of Americans is good for Canadian commercial real estate investors, as it will spark an increase in consumer spending. Relocating to a new country means acquiring new residences in Canada, furnishing homes, and acquiring other essential items. This new demand will produce greater profits and growth for retailers.
This increased growth in consumer spending will result in Canadian retailers expanding their operations, thus sparking an increased demand for commercial real estate. As retailers continue to grow, so too will the demand for retail commercial space.
If you 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
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