More and more Canadian investors are looking towards real estate investments for safety and yield. Below are five different property types available for investors, each with their own benefits and values.
Industrial Real Estate
Industrial real estate covers a wide variety of property uses. In Canada, it is probably most notable in its use by energy and oil companies. This can make it extremely valuable in times when oil prices are high and related companies often secure real estate for their needs years in advance to lock in low costs when property prices are attractive. There are other uses in this category to such as government property, distribution centers and warehouses and manufacturing plants.
Recent surveys and data show that office buildings have remained one of the most popular types of real estate investment with global investors. Large investment funds and institutional investors flock to these types of investments, often due to its income capacity and the fact that office buildings generally occupy prime central locations. While the relocation of corporate headquarters is often a major indicator regarding the performance of other types of real estate, as jobs and incoming workers lift the local economy, it is also wise for Canadian property investors to keep an eye on remote working trends and its impact on the future demand for office space.
Multifamily Apartment Buildings
Multifamily rental apartments offer Canadian property investors an easy to understand step up from residential single family homes. Experienced and sophisticated real estate investors often prefer multifamily to single family due to lower costs per door, easier management and higher ROI on value add improvements. Canadian investors typically choose multifamily for passive income generation and wealth preservation.
Canada’s retail property performance is among the best. Choices for investing range from stand-alone single tenant stores to local shopping plazas to super-sized, internationally respected shopping malls. Retail stands out for income investors and those seeking passive wealth buildings.
Raw land can run from small buildable lots in existing residential communities to large plots that could house farms, factories or malls. While land doesn’t generally provide the income and yield that the above commercial properties do, it does offer low maintenance and low holding costs.
Selecting the best commercial property type to invest in really comes down to watching real estate cycles and selecting the right types based on personal goals, while evaluating the individual merits of each property. Dependent upon your goals, your financial needs can be met with a variety of different property types.