The Regina commercial real estate market has been witness to steady property value growth for the past three years. Investors discovered Saskatchewan as an under valued market in which value "catch up" was inevitable. Analysts across Canada have agreed that many factors will make Saskatchewan a sure bet on terms of economic growth and resulting value enhancement in commercial real estate. Driving factors will be growth in the commodity markets, including oil and gas, potash, uranium, diamonds, ethanol and bio-diesel as well as the old standby, the agricultural sector. The availability of capital along with a positive investment climate makes Saskatchewan "The place to be".

Retail Market
After ten years of expansion on the east side of Regina, and five years of growth in the northwest look for the focus to shift in 2008 to Harbour Landing site in the southwest corner of the city. Some 800,000 square feet of new retail space will be constructed in this area over the next few years. Rental rates for all other areas in the city are expected remain constant in 2008.

Investment Market
Investment properties in Saskatchewan will be highly sought after by both local investors and investors from afar seeking to take advantage of "value catch up" in the province. CAP rates will edge downward and investors will purchase properties at low rates of return " cash on cash" in return for value appreciation over the next few years.

Industrial Market
Record low inventory of space will make growth in the industrial market difficult in 2008. Both multi-tenant and single use factors are in short supply. The scarcity of industrial land and higher construction costs will pull the industrial lease rates up by $2-3.00 per square foot by years end. Look for a new industrial land development in west Regina in mid 2008.

Office Market
With no new construction in the office market for almost a decade rental values will begin to edge upward. A couple of new downtown projects are being contemplated with estimated rental rates expected to be well over rates for $30.00 per square foot. Rental rates for existing Class A space will exceed $20.00 per square foot and Class B space expected to be in the $12.00-$14.00 range.

Rural Market
Interest in agricultural land in Saskatchewan has risen steadily for the past three years. Increasing commodity prices have led to increased demand for rural land. Diversifications including crops for ethanol and bio-diesel have further fed the demand for rural real estate. Look for values to increase as investors from outside Saskatchewan view the potential of this province.