I have been thinking and reading about what is happening in Greece from quite a while now. Their economy is over burdened with debt. When you pay attention to the countries like Greece, Germany, Portugal, Spain, you can’t help noticing that they all are in dreadful stage. There’s no surprise, because there are buying each other’s paper and gradually there is no money to pay back for the paper. All this has started the trouble. Especially if we talk about Greece, the country is loaded with debt and cannot issue any more paper as it is completely out of worth. Next thing is not less than an obvious thing that the European Union is scuttling to figure out what to do and what not to do as the Euro is affected majorly. You know the things happening in US in terms of foreclosures are a little scary and whatever is happening seems to be docile in comparison to what is happening in other parts of Europe. You are seeing that people are buying the US dollar despite knowing all the scary things associated with it. All this is happening because the Euro is weakened under major debts. Even if you are not an expert on world politics or world economy, then even you can appreciate whatever good is happening in Canada. You know whenever Euro falls the Canadian dollar picks up the steam. You know the economy of Canada has expanded by 5% in the fourth quarter of the year2009, and when you see increase in a number like 5% then you find no reasons to deny that Canada is a good place and is doing really well. Some people might have never seen any gross domestic growth since 2000, you know the reason why? Well in that case, we have mining, we have oil and gas, and we have construction, manufacturing, and a whole extent of service producing industries. All this has continued to pull the wholesale trade along with good real estate in Canada. In an effort to control growth and inflammation our Canadian government may raise interest rates and to help maintain the safe economic environment we have grown accustomed to. All in all we can see a good growth of Canada and can see how it is becoming the first preference for many a people to invest in. Be it governance, timing, or place, Canada is good in everything!
Calgary has the second highest growth rate for retail sales in Canada and is predicted to be number one soon which makes Calgary the brightest commercial real estate market in the country. These clear chances of being at number one position through a pole are expected to be announced by at least 2015. Most of the retailers have already chosen Calgary for the location of their first and second store openings. In fact the jewel in Alberta’s commercial real estate crown has already boosted a vacancy rate of 2.4% and 1.7% in other areas.
Vancouver has recovered an amazing rate in commercial real estate investment. Vancouver has made a good portion out of the 58% surge in dollar volume seen by British Columbia alone last year. Investment returns are staying high along with the hostile growth which is predictable to continue throughout the next 5 years. The average commercial investment of entire country is placed at number 2, with returns at an average rate of appetizing 13.7%. Each of the 4 sectors of the commercial market performed above expectations, but the only sector which remained in the lead for the 2nd year running is retail market, with returns rated at an incredible rate of 15.6%.
The city nicknamed as “Sunniest Capital City in Canada” is an imperative economic hub and is a high desired location for both Canadians and businessman, who probably look for a sunnier place to live. In Regina, real estate is known for its affordability. People investing in shopping malls and others who benefit from the tourist influx are expected to get a higher or plenty of profits once the country rebounds.
Edmonton may not be making any headlines in the top newspapers of some big metropolitan cities, but even now it is a booming location with major business opportunities and apart from the business growth it is undoubtedly a great place to live. I am sure in recent years; city’s pleasing lifestyle will continue to attract more residents and business projects which would result in an excellent growth for investors. And if we compare the real estate prices with those of Calgary, than the prices here in Edmonton are more affordable and also providing healthy returns with the same.
What you should invest in? The “Westmount Centre” and “The West Edmonton Mall” being a home to Canada’s 1st mall, we can be well sure that shopping is indeed a big business here and retail outlets here also offers many opportunities.
Victoria is always considered as stable cities out of all, and even has felt less effects of the global economic crisis in comparison to other cities of British Columbia. Since the second half of 2009, the commercial property market saw an upward trend with high expectations of retailers. This positive increase in the commercial property trend has led many local businesses to launch plans for expansion projects including many car dealers who have announced multimillion dollar construction projects.
Do you know, the first Canadian shopping mall was constructed in the year 1950 and of course our shopping habits may have had a little changed in some or the other ways since then. But if we talk about the shopping trend, it has stayed the same.
Park Royal in West Vancouver, the fiend sized shopping mall has undoubtedly had its successes in its own era. Though, not everyone wants to go to a shopping mall for their each and every need. Still if we give it a look at this whole project, more and more centres are being converted into huge shopping malls or are projecting their plans to be converted, into big, varied use, luxurious malls. No doubt these huge shopping malls do give us a variety of stores at one stop, but what about the time being wasted while parking your car, walking for around 15 minutes to the single store you want to visit and then make their way back from the parking lot to the rushy roads. Apart from all this mess, some people still like the small shopping centre feel and wants to buy from those compressed local market people who recognize them and know their names and sometimes there nick names too. They probably love their local shopping markets just the way they are.
The trend is not being acceptable especially among the people who have seen and spent most of their lives in talking and loitering in these markets. They are even vigorously protesting against this latest breed of mall.
Try and do anything at your best, but still there would be people who would oppose it or would critic it. But the question wasn’t about likes or dislikes, it directly questions about what does this new trend means to investors? Because as we all know that to make a brand new huge mall would demand higher rents and is more spacious to entertain more tenants. However it doesn’t always mean higher profits or significant returns. For the investors, investing in shopping malls the amount paid to tenants and for renovations would be really high and that too with extended periods without income.
For people who want to invest in commercial real estate through shopping mall, it is best to put your money into small or already existing medium shopping malls that offer reputable tenants and rents. If you desire to do any type of renovation to boost your fairness, the possible and best returns are to be had from simple expansion to parking, some improved signage and cosmetic revision to the outlook.
There are people, who say that internet is the future of shopping and “malls would soon be dead”. Studies show that yes, certainly online shopping has become a new trend among people but most of us still go to local centre to buy for the most part. Undoubtedly we do window shopping online, but not all of us believe to execute their purchase online. Reasons could be many, we still consider things once they are one-to-one and holding it in your hand gives you satisfaction, which is major lack in online shopping. So there could never come up a situation for the internet to doom the franchises or local centres.