According to a new study by Reuters, global commercial real estate sales increased in the 2nd quarter of this year by 47% to $101 billion, putting us on track to pass $440 billion in 2011. Canada, of course, was one of the main beneficiaries of this direct investment in commercial real estate.

A continued migration in population to Canada’s western provinces and calls for immigration reform for temporary workers will continue to fuel business, and provide employers with access to quality talent. This influx is also further strengthening the residential housing market. This can be seen most prominently in Vancouver, where the metro area currently needs about 65,000 new rental properties a year to keep up with demand, but only 600 are being added. The Canadian Real Estate Association’s (CREA) chief economist, Gregory Klump, said ‘the Canadian housing sector remains on a solid footing” and that the current market factors “bode well for homes sales activity and prices going into the second half of 2011”. Of course, we all know that equity growth in the residential sector and homeowner confidence will only result in more spending at local shopping malls.

Another report from Reuters highlights this and quotes employers as being more confident than ever in adding jobs and expanding. It similarly points out solid growth across the board with retail sales up again and building permits on the rise, in addition to new jobs being added, creating a positive upward spiral in the economy.

However, what is really going to fuel increased returns and growth for those investing in retail properties is the continued rise in demand for retail space. Canadian shopping centers out perform American ones by 45% more sales per square foot at an average of $680. Some hot Canadian spots are pulling in as much as $1,200 per square foot, only surpassed by one location, the Forum Shops at Caesars Palace, Las Vegas.

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