Concentration of jobs in downtown T.O. will cause strain

Concentration of jobs in downtown T.O. will cause strain

A fundamental economic shift is “hyper-concentrating” new knowledge-economy jobs in Toronto’s downtown as traditional manufacturing employment evaporates across much of southern Ontario, a new report warns, and the trend has major ramifications for public transit and land-use planning. The study says the lopsided job growth is a permanent change and Toronto’s transit system will be placed under further strain.

Globe and Mail

Metrolinx spent $237M to rescue Crosstown light-rail

Metrolinx agreed to spend nearly a quarter of a billion dollars to get its troubled Crosstown light-rail line back on track without proof from the project’s builders the additional costs were legitimate, Ontario’s Auditor-General found. In an annual report issued Wednesday, Auditor-General Bonnie Lysyk revealed new details about the lengths Metrolinx, the province’s transit agency, had to go to get assurances the Crosstown would be finished on time in 2021.

Globe and Mail – CBC – CBC

Saroukian building six-tower Central Parc Laval

Edmonton-based Saroukian Group says the time is right to develop land it owns in Laval, Que., which it has kept untouched for more than two decades. The property development firm is developing Central Parc Laval, a six-tower development that will contain 1,400 high-end residential rental units, a luxury hotel and retail space. It will be built on a 10-acre parcel of land with 1.2 million square feet of livable space.

Property Biz Canada

Queen’s Park fires three Waterfront Toronto directors

Ontario’s provincial government has fired three board members from a government organization working with a Google-affiliated company to create a smart-city development in Toronto. The move raises doubt about the development’s future. Monte McNaughton, Ontario’s minister of infrastructure, said in a statement Friday he informed the three provincial appointees he was bringing new leadership to the Waterfront Toronto board.

CTV – Toronto Star – Globe and Mail

U.S. regulator zaps Hydro One takeover of Avista

Premier Doug Ford insists he’s not to blame for U.S. regulators zapping Hydro One’s (H-T) $6.7 billion takeover of Avista Corp. (AVA-N), which will cost Ontario taxpayers 10s of millions in cancellation fees and reduced share value. In his first public statement since Washington state rejected the Ontario utility’s proposed takeover of Avista citing political meddling by Ford’s government, the premier was unrepentant.

Toronto Star – CBC – Globe and Mail

Brookfield claims status as top NYC CRE landlord

Brookfield Asset Management (BAM-A-T) is expected to close on its $6.8-billion purchase of Forest City Realty Trust by the end of this week, making it the largest commercial property owner in New York City. Ric Clark, senior managing partner of Brookfield Asset Management and chairman of Brookfield Property Group, said the deal will make the company the top commercial landlord in the city, with 26.1 million square feet under management.

The Real Deal – Reuters – Forbes

Canadian new home prices, sales softened in 2018

Softer sales and pricing were the prevailing trends in new home sales in seven key Canadian markets in 2018, according to analysis by Altus Group’s Data Solutions team. Executive vice-president of research consulting Patricia Arsenault and vice-president of product management Matthew Boukall presented their findings in a Nov. 22 webinar. They said Kitchener-Waterloo and Montreal were the only two markets where new home sales increased in 2018. 

Property Biz Canada

VTS adds Artis REIT, announces new marketplace

November was a month of significant accomplishments for leasing and asset management software firm VTS. Not only did it add Canadian real estate owner and manager Artis REIT (AX-UN-T) to its fold, the New-York based firm also announced its VTS marketplace. The addition of Artis brings another 24 million square feet of leasable space onto the VTS platform – which already services more than nine billion square feet of assets.

Property Biz Canada

Vancouver firm joins Ottawa’s burgeoning animation industry

From his office in what used to be known as “Animation Alley,” Chris Wightman sees an industry drawing momentum from a world-class talent pool and state-of-the-art facilities. Wightman, a digital media expert and former Olympic athlete, is the manager of the city’s newest animation studio, Atomic Cartoons Ottawa. The production hub for Vancouver-based multimedia firm Thunderbird Entertainment Group opened Monday.

Ottawa Business Journal

PROREIT acquires two Ontario industrial properties for $15.4M

PRO Real Estate Investment Trust (PRV-UN-X) announced the proposed acquisition of two quality light industrial properties for an aggregate purchase price of $15.4 million, representing an implied weighted average capitalization rate of 6.8%. The two properties are strategically located just west of Cambridge, and in greater Hamilton, both within Ontario’s Golden Horseshoe area. The addition of the properties to the REIT’s portfolio will increase PROREIT’s industrial exposure to 27.1% compared to 24.9% currently.

Canada Newswire – Property Biz Canada

CAPREIT acquires 376 Dutch residential suites for $91M

Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) (CAR-UN-T) announced it has completed the acquisition of a portfolio of seven properties in five urban centres in the Netherlands totalling 376 residential suites. The portfolio consists of 294 single-family rental homes and 82 multi-family rental suites, with the purchase price of $91 million Cdn. The purchase was funded by CAPREIT’s acquisition and operating credit facility. 

Globe Newswire

Investors like HBC CEO’s ‘drastic moves’

Pursued by an activist investor and tallying a $164 million net loss in its third quarter, Hudson’s Bay Co. (HBC-T) still managed to stir up some enthusiasm among industry analysts and investors after its earnings release Wednesday. The reason for hope, says one industry observer, is the company’s new chief executive, Helena Foulkes. “They have a pulse now,” said Bruce Winder, partner at Retail Advisors Network.

Financial Post – Globe and Mail (Subscription required)

Indigo CEO talks the future of book stores

Throughout her career, Indigo (IDG-T) CEO Heather Reisman has bet a lot on books. Yes, even while being well aware the digital revolution is continually threatening most major print industries, book publishing and sales included. “There is no doubt that where we are absorbing content is changing,” she says matter-of-factly. “Does binge-watching affect us? You bet.”

Vancouver Sun

Lampert makes US$6.4B bid to keep Sears alive

Eddie Lampert offered to buy Sears Holdings Corp. (SHLD-Q) out of bankruptcy in a bid to salvage the failing retail empire he has controlled for more than a decade.The chairman of Sears, whose ESL Investments ranks as the biggest shareholder and creditor, outlined a US$4.6 billion preliminary bid in documents released Thursday that could include a mix of cash, equity new loans and debt swaps.

Bloomberg – Reuters

California fires insured losses could reach $13B US

Catastrophe risk modeling firm AIR Worldwide estimates industry insured losses from the Camp Fire in Northern California will be between $6 billion and $9 billion US. Taken together with the Woolsey fire in Southern California, AIR estimates industry insured losses from these two California fires will be between $9 billion and $13 billion US. To date, the Camp Fire has burned 153,336 acres and destroyed more than 18,700 structures.

Globe Newswire – PR Newswire

Market Trends and Research

When will U.S. industrial market slow down?

Boosted by healthy economic fundamentals, the U.S. industrial real estate market maintained its historic growth throughout the first half of the year, according to the most recent Yardi Matrix industrial report. The sector continues to benefit from increases in online consumer spending. Traditional core industrial markets such as Chicago, New Jersey, Dallas-Fort Worth and the Inland Empire are still leading growth, but new areas of interest are emerging.

CP Executive

Real Estate Companies

Cineplex opening new VIP Cinemas Theatre in Calgary

Calgary is getting a standalone, full-service, adults-only movie theatre. The Cineplex VIP cinema is slated to open in the University District in the city’s northwest and will include five theatres with recliner chairs and food and beverage service, as well as a licensed lounge. It will be the second such theatre in Canada and is scheduled to open in 2021. 

CBC – Calgary Herald – Canada Newswire

AutoCanada acquires Windsor’s Rose City Ford

AutoCanada Inc. (ACQ-T) announced it has completed the acquisition of Rose City Ford. Rose City Ford is one of two Ford dealerships in Windsor with a 65,000-square-foot facility, an 11-vehicle showroom, 28 service bays and a collision centre. AutoCanada also completed the sale of North Edmonton Kia during November 2018 as part of its strategy of optimizing its portfolio of dealerships.

Canada Newswire

Retail

Shares plunge as Roots pulls back on expansion plans

Barely a year after a rocky initial public offering, Roots Corp. (ROOT-T) is slamming the brakes on its expansion, sending shares of the purveyor of quintessential Canadiana tumbling. The company cut sales forecasts after reporting third-quarter financial results that fell “well-below” its own expectations. It also vowed to pare store openings in the U.S. next year and slow down its entry in new markets.

Bloomberg – CBC

Dollarama misses estimates amid pricing pressure

Dollarama Inc. (DOL-T) on Thursday reported lower-than-expected quarterly results, as the discount chain operator could not raise prices in the face of stiff competition from retailers such as Dollar Tree Inc, sending its shares down as much as 17 per cent. The results come on the back of worries fewer customers are shopping at Dollarama’s stores, unhappy with price hikes in recent years.

Reuters – CBC – Canada Newswire

Five imperatives for retailers in future: EY

To keep making shoppers’ wishes come true over the next few years, retailers will need to find new ways of creating experiences and capturing value for the next generation of consumers. “We’ve seen consumers change the way they shop, discover products and ultimately buy due to the influence of new technologies, innovative business models and disruptive brands,” says Ted Salter, EY Canada consumer products and retail leader.

Canada Newswire – Globe and Mail – Canada Newswire

Cannabis industry news

Canopy Growth acquires German vape company for $221M

Canopy Growth (WEED-T) is putting its massive cash reserves towards development of new vaporizer technology, announcing Thursday it has acquired a German vape company. The Smiths Falls, Ont.-based cannabis company will buy vaporizer developer Storz & Bickel in an all-cash deal valued at $221 million. Over the past two decades, the Tuttlingen, Germany firm has built up a reputation and sizeable patent portfolio of vape products for the medical market.

Ottawa Business Journal

Work underway on CROP’s Nevada cannabis farm

CROP Infrastructure Corp. (CROP-CN) announced it is beginning Phase 1 development covering 1,729,000 square feet (40 acres) of outdoor cannabis and 60,000 square feet of greenhouse at its 1,000-acre cannabis farm in Nevada. The cost is expected to be $600,000. Phase 2 will be to triple the size and output of the farm with the addition of 5,227,200 square feet (120 acres) including an additional 120,000 square feet of greenhouse.

PR Newswire

New Development

Diamond Schmitt-designed innovation lab opens

A new facility designed for automotive and manufacturing innovation has opened at the National Research Council Canada (NRC) office in London, Ont. The open-concept collaborative workspace designed by Diamond Schmitt Architects transforms an existing NRC laboratory to accommodate all levels of the automotive and manufacturing supply chain to work together with the NRC in developing technical solutions for the design of products and services.

Construction Canada

Renovation and Restoration

Plans for Ottawa film hub rolling along

Ottawa’s film commissioner says things are moving quickly in the effort to turn a quiet piece of the Greenbelt into a sound stage for big TV and film productions. The non-profit, arm’s-length agency is partnering with TriBro Studios of Toronto to turn a former federal government research facility near West Hunt Club Road and Woodroffe Avenue into a four-stage complex, as well as office space for animation companies and training facilities.

CBC

Other

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