1. Job Growth – we look for trends in job creation, type of employment, and unemployment trends
2. Population Growth – we look for trends in growth, demographics, and forecasts that mitigate growth
3. Economic Growth – we look at what is driving the economy, is it diversified and economic trends
4. Healthy Real Estate Fundamentals – are we too late or early? Is the market stable with positive growth trends? Is the market affordable?
5. Business Friendly Government – understanding municipal and provincial / state attitudes towards development (taxation, levies, growth plans)
What Real Estate Markets do we like and what particular sectors in that market?
Calgary – arguably not only the best market in Canada but in the world to invest. According to the June 2013 IPD Global Cities Report puts Calgary as the leader in overall performance as to real estate returns in the world for the last 2 years.
What we like: concrete tower apartment buildings, inner city development in residential, retail and commercial.
Edmonton – Alberta continues to add over 100,000 new people a year driven by the energy sector and Edmonton as the capital and the “blue collar” side of the energy will continue to grow.
What we like: apartment buildings, medical, light industrial, and raw land development.
Texas – Texas leads the nation in job growth, low unemployment, affordable, projected to double in size by 2040 (over 50 million people), low taxes, pro-business government, energy, etc.
What we like: we love the Texas Triangle (Houston, San Antonio, Dallas). We like raw land for residential and retail.
Arizona – real estate trends around the Greater Phoenix area show growth trends of 30% over the next 3 years that are still well below the peak of 2008. Phoenix is in the Top 10 of fastest growing cities in the US, Top 5 in Job Growth, and #1 in real estate recovery.
What we like: we like apartment buildings in and around the Phoenix area
Craig Burows is the President of TriView Capital, an Exempt Market Dealer specializing in private equity offerings