Interest Rates Low for Q3 in Vancouver, BC
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Commercial Real Estate is Stable in Vancouver, BC
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(Posted on Nov 11, 2018 at 04:44PM by Danielle Smyth)
In a recent report, Marcus & Millichap analysts have reported that stock market volatility has not had a negative impact on commercial real estate. Instead, they indicate that the stability of commercial real estate is “increasingly appealing for investors.†You might wonder why this is the case. Well, they explain, “carrying competitive yields and relatively less volatility, commercial real estate represents a viable alternative to equities. Additionally, property values typically reflect the economic strength of the real economy, underpinned by low unemployment, positive demographics and continued growth in consumer spending, reinforcing a healthy outlook for the coming year.â€This is great news for anyone considering an investment in commercial real estate. The report further suggests that commercial leases align quite well with the rise in inflation. Over the past 12 months, core CPI has risen 50 basis points to 2.2 percent. In addition, many commercial leases tend to have built-in clauses that speak to inflation adjustments or lease resets, so that investors can deflect the costs that might be associated with an increase over time.
If you’re interested in learning more about opportunities for investment throughout Canada or how economic changes might impact you, get in touch with Marcus & Millichap's Vancouver office. One of our experienced commercial real estate advisors will be happy to provide additional information.
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