More Canadian investors are expect to put their money in the Manhattan commercial property market.
According to Commercial Real Estate, a real estate agent has confirmed that Canadian investment in the NY suburb has hit record levels in 2015. In the actual figures reported by the Real Capital Analytics, the Canadians are found 33 percent of the $25.6 billion of overseas investments in Manhattan's commercial real estate last year. The investments from Canadian are $8.3 billion up from the $1.97 billion in the prior year.
Ric Clark, chairman of Brookfield Property Group, said that the trend will continue in New York. This trend is surprising because at the moment the Canadian dollar is growing weaker and weaker against the U.S. dollar which makes real estate prices for Canadians more expensive. According to Commercial Real Estate, in over two years, the average rent for office space has risen to 13 percent in Manhattan to $75 per square foot. But even so, the weakening loonie has not caused Canadian investors from veering away from Manhattan or New York.
Brian Kriter, a Canadian senior managing director of valuation and advisory for Cushman & Wakefield, said that the New York City will remain as a top destination for Canadian investors when it comes to real estate. "We also expect to see more mega-deals as Canadian investors are in a flight to quality," Kriter said.
Could this now mean that the Canadians will soon be rushing to get their money out of the country as oil prices continue to drop and the Canadian dollar weakens? At the moment, experts think that Canada too will witness more investments from overseas and in that case their real estate industry can still expect to see a bright future, except for the possibility that the down payment change is expected to push the market to cool off a bit.
