According to TD Bank’s recently released 2017-18 economic outlook, the worst of Alberta’s recession is behind us. And while Medicine Hat’s unemployment rates are above the national average, a recent bump in industrial real estate activity since the end of summer could be an indication that business is indeed beginning to turn the corner.
According to local commercial realtors, there has been a flurry of activity in Industrial leases since summer ended. Meanwhile, industrial property has been selling thanks to lower prices and investors who see a business opportunity.
The uptick in leases beginning to fill vacant industrial properties around Medicine Hat is an indicator that perhaps people are beginning to return to work and seems to reinforce the TD Bank’s optimism for Alberta’s economic bounce-back for 2017 and 2018.
Property prices in Medicine Hat continue to represent good value, and investors understand that. Those who purchased earlier in the year are now being rewarded for their patience as tenants begin to move in and pay rent.
Although Alberta’s economy isn’t expected to go gangbusters in the near future, BMO anticipates oil prices to stabilize in the $50 to $65 range which will drive modest economic growth of 2.3% in 2017, making up for the economic retraction experienced in 2016.
As companies begin to return to work in the fourth quarter of 2016 and into 2017, Medicine Hat’s low cost of business and available workforce will be key factors enticing investment to the region.
There’s good reason to remain cautious but if recent real estate transactions are any indication, the worst may indeed be behind us.