Scott O'Neill

It is overall double digit returns at the moment.

I'm finding it's becoming a bit of a capital growth platform.

Like historically, commercial property has been viewed as more of a cash flow asset.

But, you know, there's a lot of people storing wealth just like they do in residential into commercial.

And, you know, if that trend continues, then that might set a new precedence on capital cap rates for areas all over the country.

These are one of these, I guess, myths that I've heard over the years that commercial doesn't grow as fast as residential.

And

At the end of the day, it all comes down to supply and demand.

That's how capital growth is achieved for any asset class.

If the demand outstrips the supply, you'll see extra capital growth.

And right now, the demand for commercial property, mostly because of its superior cash flow, it's through the roof.

There's a lot of non-traditional commercial investors now coming to this side.

And that might be from overseas, might be from residential, even people that normally invest in stocks.

I see a lot of them are

are coming this way.

Even business owners that are cashing out or redistributing profits into commercial property.

There's just a suede of new buyers out there and not many people are selling good assets.

And that means there's a lot of people fighting over a small asset pool to purchase.

And that's why we send these quick growth rates.

Now, there's exceptions to this rule as well.