Commercial real estate in Canada has been hot for the last several years, and many are wondering if that trend can continue. What will real estate look like in 2019? Check out some trends to find out if it’ll be another hot year. Then, you’ll know if 2019 is a good time to invest in real estate in Canada.
Climbing Interest Rates Won’t Impact Investments
Interest rates have been climbing in recent years, and some people think that will impact commercial real estate in Canada. That’s actually unlikely to be the case, though. Low vacancy rates, high demand, and limited supply means that investors will keep picking up commercial real estate when it’s available. That will continue to drive the demand, meaning Canadian real estate should be hot for yet another year. Don’t let the interest rates scare you off. It’s still a good time to invest in real estate.
Retail Isn’t Dead
Many people think that retail is dying, so they aren’t interested in investing in retail spaces. Retail is actually going to trend up in 2019, though. With some of the bad retail out of the way, new retail options will emerge and improve the market. Landlords are going to try new ways to bring people into retail spaces in 2019, as well. Non-retail tenants will help them bring in foot traffic, and they will also redevelop some retail spaces and mixed-used properties. Also, expect landlords to be more reliant on analytics in 2019. They’ll find new ways to improve foot traffic and overall operations, and that will give the retail industry quite a boost. You’ll realize retail isn’t dead. It’s just been sleeping for a few years and it’s going to wake up in 2019. If you’re interested in investing in some retail space, this could be a good year to do it.
Technology Will Start Changing Commercial Real Estate in Canada
Technology has changed quite a few things over the years, and it’s about to make an impact on commercial real estate in Canada. Driverless technology might be here soon, and many people will likely get rid of their vehicles when that happens. Expect developers to start future-proofing buildings now. Developers will start creating flexible spaces, so they can turn parking lots into other assets when the time comes. This is one of the most interesting developments in commercial real estate in Canada.
New Markets Are Emerging
Toronto and Vancouver have long been the hot markets in Canada, and they’ll continue to be in 2019. Those markets will be joined by some others, including Ottawa and Winnipeg. This will be the year to branch out when it comes to commercial real estate in Canada.
It’s the Right Time to Buy Commercial Real Estate in Canada
These trends show that the market is actually on an upswing. Interest rates might be up, but so is interested in commercial real estate in Canada. Consider investing in some real estate so you can start earning passive income.