CRE Market – What Questions I Need to Ask?

August 28, 2023 by admin

Investment in commercial real estate can be an attractive means of creating passive income and long-term wealth creation, but it must also be undertaken carefully with great consideration given to risks and consideration of all possible outcomes. Before diving in to commercial real estate investments, take time to educate yourself about the industry. Learn about different types of commercial properties (office buildings, retail spaces and industrial properties), the local real estate market trends as well as risks involved with investing in this field.

Outline Your Objectives and Goals – Clarify your investment objectives and goals. Set out what return you want to attain, how long it will take, and the level of risk you are willing to accept. Having specific goals will enable you to make better investment decisions. Surround yourself with professionals experienced in commercial real estate such as real estate agents, property managers, attorneys and accountants who can offer invaluable guidance throughout the process. They can offer invaluable advice and provide needed support throughout its entirety.

Search for Property that Meets Your Investment Goals. Conduct extensive research to locate commercial properties that align with your investment goals. When doing this, take into account factors like location, demographics, potential for growth and condition of each property you come across. Perform Due Diligence! Once you locate an ideal property, conduct thorough due diligence by inspecting it, reviewing financial statements and tenant lease agreements as well as analyzing potential risks and rewards. This step is critical in order to avoid making costly errors.

Decide the optimal financing solutions for your investment in commercial real estate. As it typically requires significant capital, various sources may need to be explored such as traditional bank loans, private lenders or partnerships between investors. Negotiation skills are of vital importance in commercial real estate transactions, so it’s vital that you aim for the best price and terms when purchasing property. Proper management is key to maintaining and increasing the value of a property. If you lack experience managing properties on your own, hiring professional management services might be the way forward. Diversifying your investment portfolio can be beneficial in mitigating risk and increasing returns, providing diversification from different types of properties and locations that help lower risks while expanding returns. Stay abreast of changes to both local and national real estate markets. Economic fluctuations and trends may have an impactful influence on commercial properties’ performance. Be Patient and Long-Term Focused: Commercial real estate investment is a long-term endeavor; therefore it may take time before significant returns start coming through, so remain committed to your strategy until significant returns appear.

Exit Strategy – Before investing, devise a clear exit strategy. Whether selling the property at some point in time or refinancing to take advantage of equity gains, knowing when and how you will exit is integral for maximum returns on your investments.

Always bear in mind the inherent risks involved with investing in commercial real estate, so it is crucial to remain well-informed and make well-considered decisions. Seeking advice from experienced CRE professionals may provide additional insight and increase the chance of success.

 

Hamilton: The New ‘It’ Place To Invest?

Hamilton is undergoing a long-awaited transformation, which will make Steeltown an alluring alternative to Toronto’s expensive market

The beginning of the year is an excellent time to start planning your investments. If you’re considering joining the real estate market, we’d like to introduce you to Hamilton – currently one of the safest investment opportunities in Canada. 

Offering more availability and affordability, Steeltown is home to numerous biotech, agricultural, financial, and automotive giants and is sure to grow its potential even more in the future. In this article, we’ll take you through Hamilton’s amazing offerings and explain why it’s the perfect place to buy a home or invest in commercial properties.

Convenient Location

Rising interest rates and construction costs have influenced the number of sales throughout Canada. Hamilton is no exception. Still, many experts believe that the city’s market will be better positioned to get through the tough times quicker and less painfully. Steeltown’s excellent location, of course, plays in its favour. 

The city is positioned at the westernmost edge of Lake Ontario, which means its residents are close to nature while still having all the benefits of city life. Since Hamilton is close to the US border, it attracts people doing business in the States.

Impressive development plans

According to the United Nations, Hamilton’s population is estimated to grow by 50 000 in the next five years. Consequently, the demand for housing and commercial real estate will increase too. To accommodate the newcomers, developers will have to offer new housing. Many plans are already in the making.

An impressive example is The Design District – the first of its kind in Hamilton. The new project will be strategically placed in the city’s main transportation hub. The 150 million redevelopment project plans to transform the West Harbour area into a wonderful pedestrian community. Hamilton is growing bigger and better by the day, still, it remains more affordable than Toronto.

Business At Its Heart

Hamilton is a city that’s all about business. Already now, it’s regarded as one of Canada’s most thriving tech hubs. Since it has the fastest growth rate (for mid-sized cities) for start-up companies, Steeltown is certain to gain even more traction in the future. Of course, the fact Hamilton has the highest average wages for tech workers in Canada is impressive too.

Growing Economy

Although Hamilton was long known as a manufacturing city, now it can pride itself on a well-diversified economy in a number of sectors. Entertainment, health care, education, and technology – these are just a few examples. With Hamilton’s fast growth, it’s no wonder its population is expected to increase over the next years.

Reducing Unemployment Rate

Recent reports show that the local economy is moving in a positive direction. Since January 2022, the unemployment rates have fallen. In the current market, the largest shares of job opportunities are provided in sales, business, and finance. Thanks to the lower unemployment rate, Hamilton’s residents should be better prepared for the high inflation.

Nature Enthusiasts’ Paradise

There’s another reason why Hamilton is becoming the ‘it’ place to invest. It is a paradise for nature enthusiasts. The city has more than 120 waterfalls and countless nature trails. In Steeltown, you’ll also find Hamilton Mountain, which is atop the Niagara Escarpment.

Is Now a Good Time to Invest in Hamilton’s Real Estate?

For the last few months, Canadian housing markets have gone through a steep downturn. This has largely been driven by the Bank of Canada’s spikes in interest rates. Some reports (TD Bank) suggest that in 2023 home prices will drop as much as 20-25%. But don’t let the numbers discourage you! 

Buyers who have the means can make use of the current state of the market and buy properties for a lower price. In fact, investing in real estate is a good way to beat inflation and boost your wealth in the long run. Housing is always in demand – regardless of the crisis. 

In 2023, it’s more important than ever to have a proper strategy. Despite the prices going down, they are still high, even for investors, so any decision you make should be well-thought.

End notes

Over the years, Hamilton has grown incredibly and is now considered one of the most alluring alternatives to Toronto. Whether you’re considering investing in commercial or residential real estate properties, it’s a place that’s becoming better by the day. Hamilton really does tick all the boxes for a good investment.

While experts believe the Bank of Canada will likely increase its rates even more, the future is looking bright for commercial property investors. This may not be a year for rolling the dice, but with low-risk strategies, you have nothing to worry about. To stay up to date with all the latest news in Canada’s real estate market, make sure to follow our blog.

Richard Crenian

Founder & President, ReDev Properties

Richard Crenian is the Founder and President of ReDev Properties. Ltd, a private real estate asset management company with its head office in Toronto. ReDev Properties is engaged in the development, acquisition, ownership and management of retail and mixed-use income properties predominantly located in Western Canada and Ontario. To learn more about Richard please visit www.richardcrenian.ca

ReDev Properties Ltd. Announces the Sale and Closing of Parkdale Square in Edmonton

Richard Crenian, President of ReDev Properties Ltd., is pleased to announce the sale of Parkdale Square located at 8004 – 8036 118th Avenue, Edmonton, Alberta.

The property is fully leased with ground floor retail including major tenants such as Canadian Imperial Bank of Commerce, Kentucky Fried Chicken/Taco Bell, Parkdale Liquor Store, and Subway.

Parkdale Square purchased by ReDev Properties Ltd. in 2005, is a 23,464 square foot retail plaza on 2.38 acres of land in one of Edmonton’s prime retail districts. This offering attracted significant interest, and was sold to a long established private development firm, currently active in the Canadian western market place. CBRE Group Inc. in Edmonton was engaged as the Broker for the sale.

“The sale of Parkdale Square is a prime example of our ability to create long term value for our investors,” said Richard Crenian, President of ReDev Properties Ltd.

“Even though the economy in Alberta is in a downturn, an asset such as Parkdale Square is still very sought after, gaining significant interest in the market place. The sale resulted in a respectable return and very satisfied investors.”

Parkdale Square is the 12th property that ReDev Properties Ltd. has acquired, operated and sold since 2001. This is the third property the group has sold in 2016.

ReDev is actively looking to sell and re-acquire similar assets in its portfolio, and welcomes any inquiries. The company’s short-term acquisition goals for 2017 and 2018 are to invest, purchase and manage a further $250,000 million and $500,000 million in properties respectively.

About ReDev Properties Ltd.

ReDev Properties Ltd. is a Canadian commercial real estate asset manager. Since 2001, ReDev Properties has purchased and managed over 30 commercial real estate properties in Canada. ReDev understands the key to any successful commercial real estate project is location and expert asset management. ReDev Properties carefully and diligently locates existing commercial real estate properties in markets, providing the necessary stability and future growth to ensure our assets retain and increase their value.

Richard Crenian and ReDev Properties Ltd. has developed, owned and managed commercial real estate worth over Two Billion Dollars since 1981.

Richard Crenian is Baycrest’s Founding Partner in Innovation

Canadian philanthropist and real estate entrepreneur Richard Crenian forges new innovative partnership with Baycrest Health Sciences.

We are all aging, whether we like it or not. This ticking clock is intertwined with our personal finances, our relationships and quality of life of our families and friends.

The world’s top minds, investors and entrepreneurs like Peter Theil consider innovation in the area of aging among the most important missions to be tackled today. Consider that Alzheimer’s alone impacts millions of people in North America each year. It is one of the top 10 causes of death; even outpacing breast and prostate cancer combined.

We’re living longer, but still face many challenges in quality of life, brain function and finances, as we age. We all have people that we care about that could be helped by improved technology and healthcare in the area of brain health and aging.

Going beyond our personal connections, this is a national issue costing billions of dollars a year. Increased innovation, more efficient care and better understanding of how aging affects us, and can be counteracted will not only help all individuals and their families, but the country as well.

Toronto-based Baycrest is recognized as a world leader in senior residential living, healthcare research, education and innovation and as specialists in brain health and aging. Baycrest is one of the longest running healthcare organizations, founded in 1918, and now fully affiliated with the University of Toronto, helping international communities pioneer new solutions and implement best practices in these fields.

This is a field that ReDev Properites’ President and CEO, Richard Crenian is extremely passionate about too. As founding partner of Partner in Innovation with Baycrest, Richard aims to increase awareness of the need to support progress in the area of brain health and aging and active engagement in being a part of the solution.

Richard Crenian adds this partnership to a long list of supporting causes which includes the Baycrest Alzheimer’s Foundation, Daily Food Bank, Covenant House, Scotiabank ProAm charity event and being a mentor to the Young Entrepreneurs Organization.

Brain health and aging impacts us all. It impacts every area of our lives. Being a part of the solution is now easier, with new innovative partnership opportunities.

Who is Richard Crenian?

Since founding the Canadian owned company ReDev Properties in 2001, Richard Crenian has taken a long-term investment approach with Canadian real estate, which has been responsible for the consistent growth of the company with a portfolio of over 25 commercial
properties throughout Western Canada.

Richard went on to excel as an office equipment salesman with Pitney & Bowes, quickly becoming one of the youngest sales managers throughout Canada at the age of 19. He relished in such personal achievements as being among the top three Canadian sales representative and partaking in the top branch of the year award, all of which resulting in Richard becoming one of the highest paid sales professional throughout the country.


At the age of 21, Richard started what would become ReDev properties in Saskatchewan, Canada. Starting with the initial development of multi-family residential rental units, the company has built more than 11,000 apartments and condominiums, as well as numerous retail shopping centers in the marketplace that have collectively topped over one billion dollars in revenue.

Always one to lend a helping hand, Richard has served as a Governor for Junior Achievement and was appointed to the advisory board of the University of Saskatchewan, College of Commerce.

He is also a founding member of the Young Entrepreneurs Organization in Saskatchewan and a member of the World President Organization, having graduated from the Young President Organization in 2009.

Richard regularly supports causes such as the Daily Food Bank, Covenant House, the Baycrest Alzheimer’s Foundation, SunnyBrook Hospital Toronto and theNext36.ca.