The Vancouver Sun recently reported that Canadian companies have been increasingly acquiring commercial properties in the USA. Canada has outpaced all other countries in US real estate investment, even the entirety of Europe. This is primarily due to the lack of investments at home. Canadians have, in fact, bought $27 billion USD more in property in the US than the US has purchased here.
The reason for this is that, similar to the housing market, the commercial market prices in the US were very low after the financial meltdown, making it much easier for Canadian investors to buy property. The strong dollar and ready availability of financial credit helped as well. The Canadian dominance in the US market is impressive, seeing as it makes up 50% of total Canadian investments.
High profile assets in Canada tend to be acquired by pension funds and REITs. The Bayview Village shopping center was recently bought for $500 million. Before that, Scotia Plaza in the financial district sold for an unprecedented $1.2 billion. Office space, however, still remains the most desirable property type. $4.2 billion worth of office space was purchased in 2012. Experts have claimed that after a certain point, it’s hard for big companies to grow nationally without expanding to a global scale.
Source: Vancouver Sun
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