New foreign buyers tax helping convince investors to switch to commercial real estate.
A BIV article noted that real estate agents and appraisers are seeing and increase in the sale of retail, office, industrial and raw land as a result of the new 15% foreign buyers tax on residential properties. Land sales saw the most notable increase over the last year, partially due to the new tax.
Online Shopping will affect Commercial Space
Online shopping is changing commercial real estate as larger online sites grow, retailers are retooling and warehouse distribution is growing.
- Smaller retail shops are feeling the affects the most as they struggle to differentiate and identify a market
- Larger retailers are reducing their retail footprint, adding warehouse space, offering "Pick-up" service and improving their online presence.
- Online stores require large amounts of product readily available to their markets which increases demand on warehouse space
- Bricks and mortar retail is still being added at a rapid clip, but retail is specializing and refining
Forecasts Strong For Vancouver Commercial Real Estate
Commercial Real Estate Investors will likely to see Vancouver as a stable market this year amid turmoil in global financial, commodity and stock markets, local experts say.
"There are basically two kingpin markets in Canada and that's Toronto and Vancouver".
"the value of land continues to skyrocket, pressing down CAP rates in all asset classes"
Source, Vancouver Sun quoting Colliers research department.
Surrey the best place to start your business.
Vancity released a report in June 2015 on the best regions in Metro Vancouver to start a business and Surrey took top spot. This was based largely on the rate of growth (18.6% between 2006 and 2011) combined with affordable housing and relatively low taxes for businesses starting up. The top three were Surrey, Richmond and New Westminster.
The City of Surrey has been named as one of the Top 7 Intelligent Communities of 2015 by New York-based think tank Intelligent Community Forum. The ICF studies the economic and social development of the 21st Century community. Its mandate is to educate communities on how to build prosperous economies, solve social problems and enrich local cultures. “As the most rapidly growing city in the region, investing in technology and innovation is crucial to building a city that is ready for the challenges of the future,” said Mayor Linda Hepner. “The Top 7 distinction given to us is fitting as the City of Surrey has been at the forefront in our use of digital technology to foster economic, social and cultural opportunities.” Out of more than 300 nominations, the City of Surrey is the lone Canadian city in the Top 7 list and is now in contention for the prestigious designation of ‘Intelligent Community of the Year.’ The other six cities and towns on the list include three communities from the United States, and one from Taiwan, Australia and Brazil respectively.
Transit and amenities draw investors to office, apartment assets
Investors and tenants continue to be drawn towards transit friendly locations. New projects target nodes where future light rail transit will be located. Prime locations are driving new apartment development projects to tap into market with low vacancy rates.
Source: Business in Vancouver October 28, 2014
Surrey #3 Top Town in the West for Real Estate Investors
The Western Investor paper rates Surrey near the top of communities in Western Canada to invest in real estate. WI suggests, "at 509,000 people and BC's fastest growing city, the City has seen seven straight years of record breaking construction currently exceeding 8 billion. Surrey slipped down the list slightly due to a higher vacancy rate in the office leasing market which now stands at slightly over 23%."
Source, Western Investor October 2014
Taurus New Website
Taurus Commercial launches new website to better service clients. enjoy!