Investing in a commercial real estate property is always a reliable investment decision. Particularly with Vancouver’s commercial real estate industry, the opportunity looks very promising. Commercial real estate properties are often leased out to provide office and workspaces. Like other real estate assets, it is very liquid, and risks are typically low.
Investing in Vancouver commercial real estate is a profitable business. It allows an individual, for instance, to take advantage of prices: buying the asset when they are affordable and selling them by the time the value appreciates. One can also gain profit by generating income from leasing the property.
Commercial real estate investments also serve as a hedge against other risky assets like stocks. Normally, an investor’s portfolio is a mix of risky and non-risky assets. When you have an investment in an office building, you can gain a stable profit for a long period of time.
Investing in Vancouver
According to real estate analysts, 2018 is expected to be a fruitful year for Vancouver’s commercial real estate industry. As Canada’s top commercial real estate market, Vancouver is poised to maintain its momentum as its office and industrial vacancy rates are the lowest in decades.
The brisk demand during the last few years has made Vancouver the most popular city for commercial leases in the country. From a vacancy rate of 50 percent in 2017, it is now down to 5 percent. Experts anticipate the trend to persist for the next three to four years. Pre-selling rates are smashing records, so many businesses are encouraged to get ahead as early as possible.
Industrial developments are also feeling the rush from buyers. Currently, industrial lease rates and strata values are increasing. Vancouver’s business district has the second-lowest industrial vacancy rate (pegged at 1.7 percent) in Canada. The region’s lease rate also reached 12 percent this year, the highest seen in the country in thirty years.
Indeed, now is the best time to invest in Vancouver’ commercial real estate market.