Canada's Real Estate Bubble Turns Bust

A report from the Financial Post shows that Calgary in Alberta Canada now has 1.7 million square feet of empty office space, the most in North America with another 5.2 million under construction! After years of booming construction, the natural resource rich country is starting to feel the pinch.

CALGARY – The number of half-empty office buildings in Alberta is projected to spike, as Colliers International predicts an “ill-timed” building boom should push up vacancy rates in Calgary and Edmonton.

In a report released Tuesday, the real-estate brokerage’s chief economist Andrew Nelson said, “the fall in oil prices has had a negative impact on the energy-reliant markets (in Western Canada),” which has contributed to rising vacancy rates and falling rental prices in Alberta’s two largest cities.

Vacancy rates jumped over the course of the second quarter. In Calgary’s case, Colliers reported the downtown vacancy rate rose to 13 per cent from 10 per cent, while Edmonton’s vacancy rate increased to 11.2 per cent from 10.6 per cent.

A glut of new buildings under construction in both cities could push those numbers up even higher.

“Canada is also in the midst of an ill-timed supply surge that caused vacancy rates to rise even in markets with positive absorption in (the second quarter),” the report noted.

There are 5.2 million square feet of office space under construction in Calgary right now, which is the largest amount of new commercial space being built in any city in Canada and could further push up vacancy rates.

Edmonton, a city with a current total of 17 million square feet of office space, is in the middle of its own building boom with over 2 million square feet of space under construction.

But here comes the silver lining!

Some observers see at least a partial silver lining in the numbers.

In recent years, Calgary Chamber of Commerce director of policy and research Justin Smith said, commercial real estate costs downtown Calgary were “going through the roof” and “accelerating at a pace far beyond the Canadian average.”

He said those escalating costs made it difficult for some companies to stay in downtown Calgary and noted that even large companies like Imperial Oil Ltd. and CP Rail Ltd. moved their head offices to the suburbs.

The uptick in vacancy rates, he said, could provide some relief to smaller companies looking to do business downtown, as rental rates are projected to fall as vacancies rise.

However, the numbers in Calgary may understate how much office space is sitting empty as a result of a phenomenon called ghost vacancies, where companies that have cut staff hold onto more office space than they need.

Colliers executive vice-president and partner Jim Rea said that ghost vacancies mean that, even if employment levels rise, vacancy rates may hold steady.

“The ghost space may never come to market, but those companies that currently have excess capacity of office space, as they continue to staff up, you can’t assume that they’ll be back in the market looking for more space,” Rea said.

Weakening demand for office space in both Calgary and Edmonton has resulted in large quantities of commercial real estate coming back on the market this year.

The report showed that 1.7 million square feet of office space has become available in Calgary’s downtown core, thanks in part to thousands of layoffs in the oil patch and a decline in the need for commercial space.

That is the largest quantity of newly empty space in any downtown in North America, including Houston, an oil and gas town where 1.6 million square feet have become available this year.

 HT: RW

mises.org/blog/Mark Thornton/September 10, 2015

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How to win at forex trading

Foreign currency exchange (Forex) is the greatest game on earth with a average daily trading volume of over 3.9 trillion dollars. Compare to New York Stock Exchange, which has average daily trading volume of 65 billion dollars. Which make foreign currency exchange (forex trading) market is the biggest market in the world.

Do you want to learn how to be in the winners circle?

Like any game it’s important to know the rules in order to win. You don’t have to be a professional to enter the sport, but you should have a basic understanding of the game and how it’s played. Most of this can be learned for free from the online forex trading brokers who also provide free forex trading demo account with virtual money so you can actually practice playing the game and gain your confidence and skills before plunking down your real cash in the big leagues.

As in any sport, the most important thing to do is practice before you actually play in the real game. Practice, practice, practice makes perfect. The only thing it will cost you is your time. When you think you are ready to step on the playing field, start small. Most forex trading brokers will allow you to start trading in mini accounts with as little as 200 dollars.

The secret to winning at Forex is you need to have a forex trading strategy. In other words you need to know what to look for and how to trade to make money. Work out a basic game plan you expect to follow and never let your emotions influence your trades. Rule number one is never to risk more than 2% of your account balance on any one trade. That way if you have a streak of bad luck you will not wipe out your account or capital. Rule number two is that if you have a string of five loses in a row, stop trading real money and go back to demo trading until you have demonstrated success for at least a week. Only then you go back to trading with real money. Rule number three is to employ strict forex trading rules that you stick to no matter what and do not trade wildly. If you preserve your capital from big risks you will allow it to grow steadily and consistently. Don’t try to make a killing in a short time and you can reasonably expect to grow your account by 10% a month or more.

Remember to have fun with it and learn a little more each day. This could turn into a lifelong forex trading professional career.

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Forex and Daytrading

Online trading is great way for serious investors to make money, but inexperienced traders often wind up with big losses. A good set of instructions can minimize the risks and save months of expensive trial-and-error learning.

Day Trading had its heyday during the bull market of the 1990′s. All the amateurs have since dropped out, but day trading is still being practiced by professionals. There are fewer opportunities in the current market, but skilled investors can still find them if they know what to look for.

The FOREX market, the world’s largest financial exchange market, originated in 1973. It has a daily turnover of currency worth more than $1.2 trillion dollars.

Unlike many other securities, FOREX does not trade on a fixed exchange rate; instead, currencies are traded primarily between central banks, commercial banks, various non-banking international corporations, hedge funds, personal investors and not to forget, speculators. Previously, smaller investors were excluded from FOREX due to the huge amount of deposit involved. This was changed in 1995, and now smaller investors can trade alongside the multi-nationals. As a result, the number of traders within the FOREX market has grown rapidly, and many FOREX courses are appearing to help individual traders increase their skills.

As a matter of fact, it’s advisable to take FOREX training even before opening a trading account.

It is vital to know the market mechanics of FOREX, leveraging in FOREX, rollovers and the analysis of the FOREX market. Due to this fact, potential FOREX traders would do well to either enroll in a FOREX training courses or even purchase some books regarding FOREX trading.

There are pros and cons to enrolling into a FOREX course. For beginners a FOREX course is a rapid method of learning the basics of FOREX trading. Not much time is spent on history of the market or arcane economic theories. Often, on-line or phone support from a skilled FOREX trader is available to answer any questions. Also, the information is condensed and practical, often with graphs and charts.

The disadvantage is the price, as courses are more expensive than a paperback from the bookstore. Also,

the course may just teach the approach of the trader who wrote it, and individuals have different trading strategies. The student may grow accustomed to the logic and focus of the teacher without coming to realise that nothing is predictable in the FOREX market, and many different strategies will bring profits in varying market circumstances. Also, knowledge of practical applications may not be enough, as the FOREX is highly unpredictable and there are many external factors, such as political issues, affecting the flow of finances in the market.

The best advice would be to do some background research on the FOREX market first, and then enroll in a course.

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