4 Key Disrupters in Commercial Real Estate in Canada

seoserviceusa93 • February 8, 2019

The commercial real estate market in Canada is continuing to flourish. However various factors are expected to make bring changes to the landscape in the future.

2018 proved to be a record-setting year for the commercial real estate sector in Canada due to an influx of new projects and high occupancy rates. With that being said, property owners are advised to monitor fluctuations in the market. Like all real estate, the commercial real estate sector of Canada is prone to disruption.

Let’s take a look at the key disrupters in commercial real estate in Canada:

Shared Workspaces

There has been a dramatic shift in the way people work in the country. Canada is experiencing a boom in the start-up community , many of which are led by Millennials.

Traditional office spaces are being replaced with co-working spaces that are designed to enhance collaboration, allow for greater flexibility and lower operational costs at the same time. Open offices are much cheaper than conventional cubicles. Younger professionals have found a way to work with limited office space.

Landlords can’t just lease out their building to select tenants, they have to redevelop their office space so it caters to the demand of the modern workforce. This can involve offering flexible suites or open concept office spaces.

Online Retail

Online Retail

For the longest time, the retail industry was wondering whether online shopping can actually replace physical stores. Physical shopping malls and boutiques may not have completely disappeared but they have definitely decreased; e-commerce retail is proving to be a major threat to traditional shopping outlets.

According to studies conducted by eMarketer , the sales of online retail outlets increased by around 30% in 2017 but industry experts have found that an omnichannel business model is most effective when in the retail sector.

Property owners in the retail sector should brace themselves for the shift in demand in the retail sector. There’s a need for property owners to work collaboratively with their tenants to create spaces that pull people out of their houses and into the stores.

The Growing Demand for Industrial Real Estate

Industrial real estate in Canada has the lowest vacancy rates (especially cities like Toronto and Vancouver) and the demand for industrial real estate is at an all time high. The need for industrial real estate in Canada is expected to rise in the very near future, so there’s a lot of potential for new developments in the sector.

E-commerce is the driving force behind the demand for automated distribution centers that provide quick access to major urban locations. For e-commerce businesses, quick response and fast-delivery are key differentiators.

Commercial property owners can protect themselves against fluctuating market conditions by diversifying holdings.

Digital Technology

The invention of digital technologies like lease management software can help property managers grow and manage their businesses more efficiently. They can also use virtual reality site tours allow them to reach out to new tenants.

If you’re interested in investing in commercial real estate in Toronto, contact Pivotal Commercial Realty. We’re office leasing agents, with a team that can assist you with site selection, negotiation, documentation and more. Call us today at 800-908-6718 for more information.

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