Saskatoon and Regina commercial real estate still in demand: report
29 Oct 2014
Commercial real estate still in demand: report
“LOW INTEREST RATES ALSO CONTINUE TO PLAY A ROLE, AS LENDING FLEXIBILITY IS ENABLING MORE INVESTORS AND BUYERS TO GET INTO THE MARKET.”
Saskatoon and Regina continue to entice commercial investors to the province looking to develop land.
“Across Saskatchewan, commercial land sales for future development are continuing to show strong demand from investors, and are being quickly absorbed by purchasers,” says the latest Re/Max Commercial Investor Report.
The report says Saskatoon’s growing population is driving an increase in business investment from local and national investors who are acquiring investments in the $2 million to $5 million range. And U.S. retailers are looking at Saskatoon as part of their expansion plans into Canada.
In Regina, there is limited supply in the purchasing market while there is a high demand for rental property.
Provincially, high employment rates and higher incomes per capita fuels demand of land sales for future development.
The report said offshore investors looking at longterm hold positions are gravitating to Saskatoon and local owner-operator dominate purchases in Regina.
Across Western Canada demand for commercial real estate continues to outpace supply, said the report.
“Despite supply challenges, the western Canadian market continues to hold steady across all products in the commercial sector, with measured increases in some markets supported by foreign investment interest, economic growth due to higher employment, expansion of resource development and a strong desire to increase downtown core density,” said Elton Ash, regional executive vice-president at Re/Max of Western Canada, in a news release.
“Low interest rates also continue to play a role, as lending flexibility is enabling more investors and buyers to get into the market.”
The report covers seven commercial markets across Canada including Saskatoon and Regina.