Are you thinking of investing in a commercial real estate? Do you often catch yourself debating whether commercial investments are a viable option in today’s economic climate? It’s understandable to feel uneasy investing in real estate especially with the stagnant nature of the current residential market. However, it’s important to remember that residential market trends are not inline with commercial trends.
Although residential real estate in Canada hasn’t had its best year so far, the commercial market is proving to be a very different story. Commercial property sales are booming and have been projected to keep flourishing well into 2019. Experts believe the positive growth is influenced by the lowest unemployment rates we’ve seen in 4 years as well as a tightly coiled market supply.
Not only are commercial property sales at peak prosperity, delinquency rates have remained at a historic low as well. For those who don’t know, a loan goes into delinquency when a borrower misses several payments on their commercial mortgage. According to data released by the Mortgage Broker Association (MBA), delinquency levels remained low for the 4th quarter of 2018 and are not expected to change much in the years to come. Jaime Woodwell, Vice President of MBA even went as far as to say that “it’s hard to imagine commercial and multifamily mortgages performing much better than they have recently”.
In short, it is safe to say the current economic climate could not be more perfect for investing in commercial real estate and there are a plethora of different ways you can get involved. Whether you are on the market looking for an industrial property, an office space or a multi-family residence, Clover Mortgage can help you make the right investment. Start a conversation with one of our experiences commercial mortgage agents and we can help you make the right decision for your future investments.