Categorized | Commercial

Commercial Real Estate Market in Canada Showing Signs of Improvement

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The most recent reports regarding the commercial real estate market in Canada indicate that there has been some positive growth in the country’s commercial real estate market. Properties that had once been vacant for years in suburban areas of Canada are now being sold at a consistent rate.

Many foreign companies are investing in these suburban commercial properties, and have contributed to reducing the overall commercial property vacancy rate a half percentage point to less than ten percent.

Experts believe that the improving status of the United States economy has played a significant role in the newfound growth in the commercial real estate sector in Canada. Many companies based in the United States are starting to invest in property in the country’s suburbs.

Target has been one of the more recent companies to lease commercial property in Canada.

As the suburban commercial property market has improved, so to has the urban commercial property market. Vacancy rates in downtown offices have dropped to below six percent, making office space even more valuable than ever.

The city of Calgary has enjoyed an incredibly strong commercial real estate market in the past year. The vacancy rate in the city has dropped nearly three percentage points as a result of oil and gas companies investing in the city’s commercial property.

Experts are not entirely certain as to whether or not vacancy rates will continue to decline. While the improving United States economy has played a major role in the improvement of Canada’s commercial property market, the possibility of uncertainty in both markets still exists.

 

 

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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