January 11, 2016 Neil warshafsky

What Will Be The Opportunities to Invest in Commercial Real Estate in The GTA in 2016?

The minor decline in Canadian economy and consequently the commercial real estate sector has prompted people to become concerned about 2016 for commercial real estate investment. The presence of decline cannot be denied; however, it should not give way to pessimism as the silver lining still exists in the year 2016 who wish to make something out of commercial real estate investment in GTA.

The price of Canadian dollar is going down, the decrease in oil prices has effected the economy, the condo boom continues unabated and the stability in US dollar is attracting attention of people. All these make conditions look favourable for investment, yet there are opportunities in the market that can get you through this economic recession.

The best and most conventional commercial real estate investment opportunity available is the investment in Warehouses/Industrial properties and neighbourhood shopping centres. These types of commercial real estate investments have been historically proven to work in economic downturns. The retailers have more to store than to sell and instead of shopping malls people start going to neighbourhood shopping stores, therefore, these are the opportunities that await you in 2016 and can help you generate sufficient return to pass the downturn and invest in lucrative opportunities. 

The other opportunity that can be favourable to commercial real estate investment in 2016 are medical offices and health care facilities. Baby boomers are coming of age now and as prominent and numerous they are getting, their demand for increased and better health care is increasing. The investors will see this as an opportunity and provide for the increasing need of baby boomers, thus, this area is also a good opportunity if you are looking to invest in GTA commercial real estate.

Another commercial real estate sector that can turn to be fruitful for investment in 2016 is the investment in rental units. The condo boom had its effects and the effects are the sky high housing prices which are forecasted to go even higher in the days to come. The increasing house prices has caused a change in behaviour of people and now people are preferring rental units compared to buying a house. The trend has risen to a height that old retirees have started to sell their houses and are shifting to rental units. Therefore, developers and investors are considering investing in rental units to meet the increasing long-lease rental unit demand of GTA people.

The Canadian market has been known to twist and change when the conditions don’t seem favourable. Although the aforementioned are good enough opportunities to invest in GTA commercial real estate in 2016, however, if you are still skeptic of these opportunities, then the low Canadian dollar still stands as a hope which will attract foreign investment and set things on the right course. So, no matter how saddening it seems, there is hope and you can still get fair return on your investment if you invest wisely.