Toronto, Montreal, Vancouver dominate office construction: AY

Toronto, Montreal, Vancouver dominate office construction: AY

As office vacancy rates continue to tighten in Canada’s largest markets, almost 13 million of the country’s more-than-15-million square feet of office space under construction is concentrated in Toronto, Montreal and Vancouver, a mid-year report from Avison Young reveals. AY’s Mid-Year 2018 North America and Europe Office Market Report indicates the largest share of that space, by far, is in Toronto where 8.5 million square feet of space are under development.

Property Biz Canada – Troy Media – Canada Newswire

Portage Place’s Vancouver owner wants out

With the shiny new towers of True North Square dominating downtown development, Portage Place, once seen as the cornerstone for revitalizing the area, has become a forgotten stepchild. However, the mall’s fortunes may change now that it has been put up for sale. Peterson Group of Vancouver, the owner of the mall since 2005, has been actively trying to sell it for more than a year (some say it’s been much longer than that).

Winnipeg Free Press

Canada’s other CN Tower stands tall in Edmonton

When it opened in 1966, Edmonton’s CN Tower was the city’s first skyscraper and Western Canada’s tallest office building. The 27-storey downtown international-style structure was an early example of podium/tower design. With the city’s CN passenger train terminal at its base, the building was a bustling hub activity housing CN’s Edmonton offices.

Property Biz Canada

Toronto Waterfront Innovation Centre signs anchor tenant

Data services provider WPP has signed on as the anchor tenant for the Waterfront Innovation Centre, a 400,000-square-foot-plus office development which will bring more than 2,000 employees to Toronto’s waterfront. “Having beachfront offices in Toronto is extremely rare,” said Sean Menkes, development manager for Menkes Developments, which is partnering on the complex with Alcion Ventures, in collaboration with Waterfront Toronto.

Property Biz Canada

Airbnb tells feds it wants to be regulated

One of the world’s largest short-term rental websites is inviting the Trudeau Liberals to create a regulatory regime for the burgeoning industry — something its critics have long advocated and raising pressure on the government to set rules in the market. Airbnb’s budget proposal to the House of Commons finance committee asks the federal Liberals to avoid forcing “old and outdated rules” for traditional hotels onto Airbnb hosts.

Globe and Mail – CBC – Winnipeg Free Press

Vancouver world’s hottest industrial market: CBRE

Forget that multi-million-dollar condo on Vancouver’s waterfront. Invest in a warehouse instead. The Canadian city is the world’s hottest industrial real estate market with lease rates up 29 per cent in the first quarter year-on-year versus a global average of three per cent. IKEA and BMW AG are among companies that have snapped up the biggest industrial and logistics spaces, according to data provided by CBRE Group Inc.

Bloomberg – Vancouver Sun

Montreal industrial sale sets benchmark price

GWL Realty Advisors is spending $49.25 million to buy five industrial buildings in Laval which Jones Lang LaSalle executive Scott Speirs calls the “best quality industrial to come to market in Quebec in more than five years.”  The class-A industrial buildings, with a total of 391,937 square feet, were sold by “a major pension fund” represented by Montreal-based Triovest, says Speirs, executive vice-president, capital markets at JLL in Montreal.

Property Biz Canada

Molson to keep offices in Montreal

Molson Coors Canada Inc. (TPX-A-T) has announced it plans to keep its offices in Montreal, even when its new brewery begins operations in Longueuil in 2021. The company said the decision was made after several months of discussions and with the goal of keeping “a link to the site where we began our operations in 1786.” “Our roots in Montreal are deep . . .,” said CEO/president Frederic Landtmeters.

CBC – Montreal Gazette – Canada Newswire

CAPREIT sells Saskatoon apartment property

Canadian Apartment Properties Real Estate Investment Trust (CAR-UN-T) announced it has sold the Cedar Ridge Apartments, a 102-suite property built in 1978 located in Saskatoon. The property was sold for approximately $10.2 million and includes the assumption of two mortgages by the purchaser of approximately $7.5 million. The net proceeds will be used to reduce the REIT’s credit facilities and for future growth opportunities.

Globe Newswire

BTB announces sale of Longueuil property

BTB REIT (BTB.UN-T), further to the conclusions of its strategic review of its portfolio, announces the sale of a property located at 3036-3094 Chemin Chambly, Longueuil, in the province of Québec, for total proceeds of $5.65 million. The net proceeds will be allocated to repay the outstanding lines of credit.

Canada Newswire – Property Biz Canada

Greybrook invests $8.4M in Ontario residential development

Greybrook Realty Partners announced the successful closing of an equity investment by its managed issuer of $8,410,000 to acquire and oversee the development of a prime parcel of land located in Bowmanville, Ontario. Together with its developer partners, Cityzen Development Group and Tercot Communities, the firm intends to develop the land into a residential community consisting of over 140 homes, including single-detached homes, freehold townhomes and urban condominium townhomes.

Globe Newswire – Property Biz Canada

Second Cup may convert Ontario coffee shops to cannabis

The Second Cup Ltd. (SCU-T) says it is actively reviewing locations in Ontario for potential conversion to cannabis retail stores in light of policy changes in the province. Second Cup had announced a partnership with marijuana clinic operator National Access Cannabis Corp. (META-X) in April to potentially convert coffee shops to retail stores under the brand Meta Cannabis Supply Co.

Globe and Mail – Canada Newswire

Race begins for Ontario pot shop locations

With the move to allow private businesses to operate cannabis stores in Ontario, the race is on to secure storefronts. Officials at four major cannabis companies say they actually anticipated the possibility of a policy shift to privately run pot shops and had already begun scouting locations. The companies are building cannabis stores in Western Canada and say they will be ready to jump into Ontario with multiple locations.

Ottawa Citizen

Smaller retailers lead exodus from Vancouver

Empty storefronts pockmarking Vancouver strolls such as Robson, Denman and south Main Streets are the result of a mix of higher rents and taxes, development pressures and storeowners following their customers to the suburbs, analysts say. Small retailers are the most affected. “Certain areas of Vancouver are hollowing out,” said Craig Patterson, who has been consulting with the City of Vancouver on the issue.

Western Investor

Amazon looks to acquire Landmark Theaters

Amazon.com Inc. (AMZN-Q) is in the running to acquire Landmark Theaters, a move that would vault the e-commerce giant into the brick-and-mortar cinema industry, according to sources. The company is vying with other suitors to acquire the business from Wagner/Cuban Cos., which is backed by billionaire Mark Cuban and Todd Wagner. The chain’s owners have been working with investment banker Stephens Inc. on a possible sale, the sources said.

Bloomberg

Featured Column

Fun Sin City facts from a real estate nerd

I just got back from a hot but fun weekend in Las Vegas and of course my commercial real estate brain could not turn off the whole time I was there. The immense size of the development and the energy it must take to run it all caused me to do a little research when taking a break from the distractions of the Strip.

Read more

Market Trends and Research

Suburban offices drawing renewed interest

Suburban office properties are drawing renewed interest from commercial mortgage-backed securities lenders this summer, highlighted by two significant offerings being prepared for funds managed by major institutional investors Brookfield and TPG. The two new single-borrower offerings are projected to total more than $750 million and should come to market this month.

CoStar Group

Real Estate Companies

Pinnacle Foods to close Quebec plant

Pinnacle Foods, the maker of such brands as Duncan Hines, Earth Balance and Hungry-Man, is closing its plant in Laval, Que. The New Jersey-based company said the decision was made after a third-party contract was not renewed. The company also said production of gluten-free products would move to other facilities. The plant will close in November and result in approximately 150 layoffs.

Canadian Grocer – Canada Newswire

Luxury hotel owner looking for a buyer

A London-based company that owns and operates dozens of famous hotels, from the Cipriani in Venice to the Copacabana in Rio de Janeiro, is up for sale after years of rebuffing its many suitors. The move by Belmond Ltd. to explore the market now is the latest sign that luxury travel is booming after an extended downturn, when many leisure travelers and businesses shunned paying up for high-end accommodations.

Toronto Star

REOC Financial Reports

Latest financial results:

* StorageVault Canada Inc., (SVI-X), Globe Newswire

REIT Financial Reports

Latest financial results:

* PROREIT, (PRV-UN-X), Canada Newswire

Real Estate Investment Trusts

Automotive Properties yields 7.4% with a payout ratio of 88%

Automotive Properties REIT (APR.UN-T) offers investors an attractive yield of more than seven per cent, which appears sustainable given its payout ratio of 88 per cent. The Toronto-based REIT held a portfolio of 40 auto dealership properties and one development property as at June 30. These properties are located in major cities across the country, specifically the Greater Vancouver Area, Calgary, Edmonton, Regina, the Greater Toronto Area, and Greater Montreal Area.

Globe and Mail (Subscription required) – Property Biz Canada

Is Allied Properties the complete package?

I’ve long maintained that REITs are some of the best investments you can add to your portfolio. One such investment that can offer both is Allied Properties REIT (AP-UN-T). The commercial-focused REIT has several compelling reasons for investors to consider it. Allied Properties has strong growth prospects with an emphasis on hot markets

Motley Fool – Property Biz Canada

Retail

Walmart reports best sales in more than a decade

Walmart Inc. (WMT-N) bounced back from a lacklustre start to the year with the strongest sales gain in more than a decade fueled by its grocery business, brightening the outlook for the overall retail sector. The stock jumped as much as 11 per cent, the most intraday since October 2008. Comparable sales at U.S. Walmart stores rose 4.5 per cent in the three months ended in July, more than double analysts’ estimates.

Bloomberg – Bloomberg

Saks OFF 5TH opening at Calgary’s Market Mall

On Aug. 30, Saks OFF 5TH will celebrate the grand opening of a new, approximately 25,300 square foot store at Market Mall in Calgary. This new location marks the second Saks OFF 5TH in the Calgary region joining the CrossIron Mills store that opened in 2016.

Canada Newswire

Cannabis industry news

Jasper pitches relaxed rules for cannabis retailers

Jasper, Alta.’s municipal council says it won’t put any limits on the number of cannabis retailers allowed within the mountain resort community. Council voted Tuesday to make a series of recommendations on commercial regulation. Under the proposed bylaws, pot stores would be allowed to operate until midnight, and there would be no limit on the number of stores in town, or how close pot retailers can be to each other.

CBC

Infrastructure

Aecon Group rejoins Gordie Howe bridge consortium

Detroit Windsor Bridge Authority has approved Aecon Group‘s (ARE-T) request to rejoin the Bridging North America, the group selected to design, build, finance, operate and maintain the Gordie Howe International Bridge. With DWBA’s approval, Aecon will be working with ACS Infrastructure Canada Inc. and Fluor Canada, among others, on the new bridge coming to Windsor.

CBC – Canada Newswire

Manitoba Hydro issues stop work order on bus rapid transit project

Work has been halted on part of a half-billion dollar Winnipeg mega project after Manitoba Hydro ordered construction company PCL off the site for building too close to their hydro lines and towers. No work has been done for a week as the two companies hash things out, and likely won’t start again for up to another two weeks, said Manitoba Hydro spokesperson Bruce Owen.

Global News

Other

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