Commercial real estate has been demanding the lion’s share of the attention among experienced investors recently. Canada’s leading cities Calgary and Edmonton have been competing for globe topping commercial property investment returns for several years and while Edmonton is expected to continue to edge ahead, the outlook remains bright for all Alberta investors for the foreseeable future.
Alberta’s commercial property market is quite sizable and everyone wants to know which property type is the absolute best. To help us assess that, we can look at factors currently taking place.
The current energy predicament isn’t likely to last, which will minimize losses in industrial properties. Concerns about overbuilding in the office sector will likely be negated as more head offices and start-ups move in. Lastly, retail will remain a strong front-runner as more luxury stores continue to expand into Canada.
Despite the media’s coverage of the current issues concerning retailers, such as e-commerce, the sector isn’t slowing down. There are large bidding wars over Edmonton’s retail space, which is driving up rent, property values and investment returns.