How COVID-19 Has Affected the Canadian CRE Market | Canadian Real Estate News
As you may have already read, the novel coronavirus has left an impact on industries around the globe with the Canadian real estate market being no exception.
These unprecedented developments have left several CRE investors pondering on the future of the market.
While the situation is very severe from a health stance, Canadian retail CRE investors are actually in a good place and would benefit from investing in commercial real estate during COVID-19. Here’s why!
Canada and COVID-19
The number of confirmed cases with COVID-19 are on the rise and this has sent some into a state of panic. Many fear that the worst is yet to come, and governments, healthcare officials, and businesses are doing all they can to stop the epidemic from spreading.
That means closing restaurants, schools, gyms, museums, and shopping malls around Canada. Many private and public institutions have officially shut down to flatten the curve and remain compliant with social distancing norms.
Industries Thriving in the Pandemic
While clothing retailers, restaurants, and coffee shops cannot help but to close their doors for the duration of COVID-19, Canadian CRE investors don’t actually have any cause for anxiety. Many commercial retail spaces are open to serve people who are in lockdown.
Grocery stores, pharmacies, medical supply shops, and medical offices are naturally getting more foot traffic, and this will go on for the duration of COVID-19.
They provide essential products and services, and even if a complete lockdown is ordered, as we’ve seen in countries such as Italy and Spain, and in various cities in both China and the U.S., these retail locations have remained operational.
The Future Is Hopeful
Regardless of the current situation, the future is bright for retail CRE. Those who invest in retail real estate now stand to benefit financially. At the moment, the costs of buying CRE are lower, and once the pandemic is put under control, retailers will jump at the opportunity to rent out spaces, open up shops, and regain financial stability just like what’s happening in China as many retailers start to reopen.
It’s expected that shopping at brick-and-mortar locations across Canada will improve to pre-Corona levels; especially restaurants, entertainment venues, gyms and discount retailers.
Conclusion
Investing in Canadian retail CRE could offer a big return on investment once the pandemic threat has passed. There are already reports analyzing “retail recovery following containment of COVID-19” as China has initiated its reopening. This confirms that while many around the world are currently experiencing restrictions, it will not last forever, and the future appears to be bright for those wise enough to make strategic investments now.
For more information, please visit:
https://www.redevgroup.com/news-article/covid-19-and-its-effect-on-canadian-cre