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Love Thy Neighbor: The United States and Canada Share a Common Border, but Investors Will Find Differences on Either Side
Institutional real estate investors in Canada and the United States are looking to their neighbors for cross-border property investment opportunities. Differences between the two markets can create different sets of opportunities. While Canadian investors may be attracted by opportunities created by distress in the U.S. property markets, U.S. investors will find a stronger economic recovery to their north.
The history of institutional real estate investment in Canada is quite different from that in the United States. While the two countries are near neighbors, their institutional property markets developed along different paths.
When Canadian pension funds began to invest in real estate in the 1990s, they focused on acquiring large operators, says Jason Currie, managing director with Conundrum Capital Corp., a Toronto-based real estate investment firm.