Breathtaking Alberta is known for its stunning scenery, such as the awe-inspiring Canadian Rockies and its powerful rivers, but this western province isn’t all show. Numerous industries thrive here as well, including oil and gas, agriculture, technology, and healthcare, meaning that there are boundless opportunities for those investors seeking to add commercial real estate to their portfolio.
Today, we’ll discuss some of the major opportunities for commercial property investment within Alberta, with a special focus on what kinds of spaces are available for investors to consider. Lastly, we’ll explore how you can break into this fast-growing market, including first steps to take when taking advantage of the incredible growth potential of commercial real estate within the wild, rugged west.
Alberta is rich in natural resources, and this is reflected in its economy. Oil, gas, and mining constituted 16.4% of the province’s GDP in 2016, vastly overshadowing the second largest industry of business and commercial services. It also has large manufacturing and construction sectors, meaning that commercial property for sale in Alberta is heavily weighted toward industrial applications, including manufacturing facilities and warehouses.
Another major component of Alberta’s economy is farmland, as this sprawling province has plentiful space for numerous agricultural products. Processing facilities, farmland, and agricultural warehouses are some of the other potential properties that you could purchase for investment. As agriculture will only continue to grow as Canada’s population grows, these are excellent prospects for buying and holding properties for the long term.
Technology is a budding prospect in Alberta, with startups popping up all across the province to take advantage of a low cost of living. Data centers and office buildings are in high demand, which is the perfect opportunity to invest and capitalize on the pressing need for more technological storage and work spaces.
Similarly, Alberta is home to numerous world-class educational and healthcare institutions, which can drive up prices for offices and apartment buildings. And with so many professionals and college students, there is also a strong need for retail properties, whether that is small boutique shops or big-box shopping centers where a resident can purchase all the essentials.
It’s clear that Alberta has a highly diverse economy, with numerous sectors demonstrating healthy growth over the past ten years – and this means bright prospects for those looking to purchase commercial property in the province.
The time to invest in this shining Western star is now, which is why you need to understand how, exactly, to break into the commercial real estate market within Alberta.
Every market is different, and this includes Alberta. While it’s helpful to look at general trends within the Canadian real estate market, you should focus most of your attention on the more granular analysis of the province, and then the local economy.
First, take a look at a real estate marketplace to see the many opportunities available; this will give you a good idea of what you might specialize in to start, whether that’s warehouses or apartment buildings. Peruse the listings online first, and start getting an idea of how many properties of each type are available, including what they cost on average. For new investors, you might go with a safe bet and pick something that’s plentiful; if you’re more audacious, go for a commercial property type that’s rarer, as this may mean you have more leverage for renters.
Once you’ve got an idea of what kind of property you’d like to buy, begin making a plan for success. You need to consider how much you’re willing to pay up front with respect to the average rent you can expect to make on a particular property, as this will help you get an idea of how long it will take to recoup your initial investment. Think about the level of risk you’re comfortable with as well, as this can inform what kinds of properties you take on and how much you put toward developing and improving them.
With this completed, you can start to look at particular properties. Use a real estate marketplace to start reaching out to sellers, and get all the facts of their property so that you can perform due diligence. This includes learning about the rent history, maintenance costs, and any particular repairs or improvements that may need to be made. Consult with an accountant who can help you decide how much risk you’ll be taking on by selecting this property, then begin the negotiation process with the assistance of a qualified real estate lawyer. Be sure that you’re getting a fair price, and that you completely understand what you can expect this property to generate if it performs well.
Alberta is a remarkable province with numerous commercial real estate opportunities for investors. Whether you’re looking to buy an apartment building or an entire meatpacking plant, you can find a variety of promising properties to explore. Do your due diligence and know your financial goals before you put any money down, and soon enough you’ll be the proud owner of a well-performing property that will help you reach your financial goals in no time.