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Globalization Affects Commercial Real Estate!

The last 5 years has seen globalization create sweeping changes throughout the business world, with residual effects emerging in every area of our lives. So how will globalization affect commercial real estate and investment?

Hundreds of new small businesses are being launched by Canadians every month, utilizing cloud computing software and advances in communications. Not only is this providing higher profit margins for new Canadian businesses, but it is also eliminating much of the money previously spent overseas, while bringing in revenues from a worldwide market. This promises to boost consumer spending in Canada, and give Canadians more disposable income to spend at local retailers, which in turn will boost the value of commercial real estate for those who are invested in it.

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Ranking 7th in Global Commercial Real Estate: Canada

The recently released report, the ‘International Investment Atlas Summary 2010’ from Cushman & Wakefield places Canada seventh in global investment in commercial real estate. Even better, this report shows that commercial real estate investment volume is up 150% over the previous year!

The other leaders in this study included:

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The Growth of Canadian Malls, and it’s Investors

Our shopping habits may have changed a lot in some ways since the construction of the first covered Canadian shopping mall in 1950. Though in many ways they have stayed the same, and so has the way people enjoy shopping.

While the first monster sized shopping mall, Park Royal in West Vancouver, has certainly had its successes, not everyone wants to have to go to a large mall every time they need something. More and more shopping centres are being converted, or are developing plans to be converted, into large, mixed use, luxurious malls, though many Canadians say they love their local shopping centres just the way they are. People still prefer buying from faces they recognize and who know their names, and perhaps more importantly, don’t want to have to take 15 minutes to park and then walk equally as long to get to a single store they want to visit. They like the small local shopping centre feel. Some citizens are even very actively protesting against this new breed of mall.

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