Commercial and retail investments in Edmonton have performed well despite economic challenges in Alberta. Retail properties have shown strong performance and increased leasing activity has brought investors back despite job losses in the oil and gas industry. Retail properties remain attractive investments even during economic downturns as retailers have continued to perform well. While online shopping has grown, it has not negatively impacted brick-and-mortar retail as much as expected, and traditional retailers staying strong makes commercial retail properties a good investment opportunity. The economy is now showing signs of recovery in Alberta.

1. Why Retail & Commercial Investments Are
Performing Well, Despite Economic
Challenges
Drastic increases have been seen in the volume of commercial real estate sales in
Edmonton over the past year, with retail properties showing a strong performance.
Even with the Alberta economy taking a hit in late 2014 when oil prices dropped,
commercial and retail investments continue to perform well. In late 2014 thousands of
employees in the oil and gas industry were laid off, but signs of recovery started to emerge
in late 2016.

2. In mid-2016, investors began to respond to the positive effects in Edmonton from the First
Capital Brewery District and Rogers Place opening. In addition, accelerated leasing activity
helps to bring investors back to the market.
Increase in Private Investment
Although institutional investors have become more cautious with their investment capital,
new investment opportunities have begun to arise for high-net-worth individuals. This trend
has helped to drive the market for the past few years, as many private investors have
gained access to attractive financing with low interest rates.
Retail properties tend to remain a strong investment, regardless of the current economy.
Even during tougher times, retailers have performed well, making the retail sector a good
investment. Some investors expect lower prices during a slow economy, but this hasn’t
been the case in Alberta for the retail sector or the commercial sector.
Growing Online Buying Doesn’t Slow Retail Down
The growth in online purchasing is real and now represents close to 10% of the overall
purchases made in Alberta. However, the growth in e-commerce hasn’t become the threat
to brick-and-mortar retail, as most believed it would become. Canadians continue to
embrace shopping in physical stores and enjoying the experience of heading to a shopping
mall.
This trend has resulted in traditional retail businesses remaining strong, which makes
commercial retail property an advantageous investment opportunity for many investors.
Much of the success within the commercial retail section is rooted in local neighborhood
retailers dealing with essential goods and services, such as haircuts, doctors, dentists,
grocery items and lower priced restaurants.
The new digitally-enabled shopping experience has become a popular way to connect brick-
and-mortar with the online world. In fact, some believe that e-commerce can help to make
traditional retail even stronger, as the in-store shopping experience continues to become
more interactive and retailers continue to draw more customers into the stores with online
promotions.

3. Summary
Economic issues haven’t kept the commercial and retail sectors quiet in Alberta, as
traditional retail remains strong and the slow economy has even started to show signs of life
once again. Investors looking to hedge their investment capital, while generating consistent
returns might be best served by investing in Canadian commercial real estate in the months
and years ahead.