In the midst of whispers of an oncoming recession, the market can take on the appearance of instability and create hesitation in investors. One thing is certain – those who want to invest, will.
But where will they put their capital?
Expert opinion suggests that investors will be looking at putting their money into commercial real estate. And at CGI Strategies, we agree.
Let’s look at some trends.
- Nationally, lease rates have favored the landlord.
- In Canada, office leasing rates have vacancy rates at less than 3%.
- Rents in the industrial sector have sharply increased and vacancies are running lower than 1.1%.
- In 2019, even rents in typically low-earning retail chains are expected to post gains.
Our focus will remain on mixed-use and multifamily real estate, as those areas are expected to accelerate in the coming years while other areas could see deceleration. Gidi Cohen, our CEO, has developed and pivoted our company’s infrastructure to stay ahead of the competition when it comes to closing confidence and to increase the number of projects in the coming year.
This includes a shift to third parties in areas such as human resources, marketing, accounting and property management. With the focus becoming increasingly more project-oriented, we aim to continue to lead our competitors.
It also includes taking advantage of national and local incentive programs to increase financial gain. We are working with a financing structure that allows developers to build a workforce and low-income housing within urban living, and still make the development successful and profitable for our investor partners.