Alberta hotels struggle with vacancies

Alberta hotels struggle with vacancies

Alberta hotels are struggling to fill hundreds of rooms left vacant by industrial crews and business people whose travel has been cut by plunging oil prices. Two years ago, it was nearly impossible to book a place in the booming resource centres of Fort McMurray or Peace River, where Edmonton-based Sawridge Group operates a hotel in each community.

Edmonton Journal

More downtown office space coming to Calgary

Five downtown office towers, currently under construction, will add an additional 3.859 million square feet to the Calgary CRE market between the first quarter of this year and 2018 — and likely boost a vacancy rate nearing 20 per cent. Avison Young research indicates those five buildings are 68.07 per cent pre-leased, comprising 2.627 million square feet.

Calgary Herald

Avison Young acquires appraisal firm Metrix Ontario

Avison Young’s claim to being the world’s fastest growing commercial real estate services firm was bolstered in the new year with its acquisition of Toronto-based property appraisal company Metrix Realty Group (Ontario) Inc. “Avison Young and Metrix had some discussions over the past two years and realized in 2015 that an acquisition of Metrix was a good fit,” said Metrix Ontario founder and president Paul Stewart.

Property Biz Canada

Brookfield lines up U.S. self-storage deal

Brookfield Asset Management Inc., (BAM.A-T) is closing in on a $1.17-billion Cdn self-storage deal in the U.S. The asset manager is planning to buy Simply Self Storage for its Brookfield Strategic Real Estate Partners II fund. The Orange County Employees Retirement System reported the deal, on which Brookfield declined to comment, in a board-meeting document.

Financial Post

Mohaw Medical REIT adds Ottawa building

Mohawk Medical Properties REIT, a private real estate investment trust, announced it has acquired another class-leading, full service, medical office building in Ottawa. The Carling Broadview Medical Centre is occupied by 52 physicians. The REIT, formed in September 2012, also announced it has another medical property under contract with plans to close later this month.

Canada Newswire – Ottawa Business Journal

Winnipeg’s True North Square taking shape

The fencing is up, and construction will soon begin on one of the most highly anticipated developments in years — the $400-million True North Square project in the heart of downtown Winnipeg. True North Development spokesman Scott Brown said Monday the Winnipeg-based developer will be making a major announcement within the next couple of weeks.

Winnipeg Free Press

Time to relocate Winnipeg’s rail lines

Relocating Winnipeg’s rail lines out of the city would be a massive undertaking, but several expensive projects to go over, under and around existing lines — along with a larger tax base after land is freed up — could make relocation financially attractive in the long term.

Winnipeg Free Press

Feds pressed to spend on infrastructure

The federal government is facing a heightened sense of urgency regarding its plans to stimulate the economy with billions of dollars of spending on new infrastructure. After the economy closed out 2015 on a disappointing note, private-sector economists are lowering their Canadian growth forecasts for 2016.

Globe and Mail

USD applies to double size of rail terminal

Houston-based USD Group is pushing ahead with plans to double the capacity of its Hardisty, Alta., rail terminal, adding heavy crude oil, butane and propane to the mix of products it can load onto 120-railcar unit trains and move to markets. The current facility can load two 120-car unit trains per day.

Calgary Herald

Toronto Hydro privatization plan in works

Behind-the-scenes work is ongoing for the possible sale of a minority stake in city-owned Toronto Hydro to help fund the city’s massive capital needs including Mayor John Tory’s SmartTrack plan, the Star has learned. The privatization proposal, if it goes to city council, could spark a public battle fiercer than last year’s east Gardiner Expressway fight.

Toronto Star

HBC has big e-commerce plans for Gilt

The US$250-million purchase of online retailer Gilt.com will introduce the “flash-sale” brand to a new audience of Saks Off Fifth customers and vastly enhance Hudson’s Bay Co.’s (HBC-T) mobile shopping platform, CEO Jerry Storch said Thursday. In addition to accessing Gilt’s nine-million active users, HBC plans to open Gilt shops inside Saks Off Fifth.

Financial Post – Toronto Star – Winnipeg Free Press – Fortune

Condo mall businesses suing developer

Optician Alfred Wong says he was misled into thinking he was making a smart investment when he bought a retail condo unit in the underground mall of Toronto’s 80-storey Aura building. A brochure boasted future access to the PATH, which links 1,200 stores, 50 buildings and Union Station. But there is still no PATH connection.

Toronto Star

Downtown Vancouver lap of luxury gets deeper

Vancouver’s retail landscape will see major changes in 2016. A massive new suburban shopping centre will open and several popular downtown stores will expand. Robson Street will see several exciting new retailers on its struggling 1100-block and more luxury stores will open in downtown Vancouver’s luxury zone.

Business In Vancouver

Traffic up at Calgary shopping centres

Despite a faltering economy dominated by news of layoffs, some of Calgary’s biggest shopping centres had an increase in customers in the lead up to the Christmas holidays. Paige O’Neill, general manager at CF Chinook Centre, said Boxing Day traffic at the mall was flat compared with 2014 at 107,750 visitors.

Calgary Herald

DAVIDsTEA continues rapid expansion

Montreal-based beverage company DAVIDsTEA Inc (DTEA-Q) has added another 10 locations in Canada and the U.S., expanding its North American retail network to 193 outlets. New Canadian locations include Complexe Desjardins and Les Promenades Drummondville. South of the border, new stores have been added in New York and California, bringing the U.S. total to 37.

Montreal Gazette

Featured Column

Conference Board may be overly optimistic

Traditionally, the general economic activity affecting Saskatchewan’s commercial real estate industry is impacted by three main outputs: agriculture, energy and potash.  The Conference Board of Canada’s has forecast of two per cent GDP growth in 2016.

The Saskatchewan Edge

Will investors play real estate as a safe haven in 2016?

We’re starting the year with oil prices that remain at record lows, stock market volatility, continued Middle East conflict and an activist Liberal government in Ottawa.  What does this all mean for the Canadian real estate market in 2016 when combined with the demographic shifts in our population?

Value: Weighed and Measured

A perfect storm of social trends

In the current economic situation, the market for most things, including real estate, has changed dramatically. Five interconnected social trends have been developing at their own pace and have seemingly been accelerated by market conditions.

Let’s Make Things Interesting

Title insurance: Helping you get the deal closed

In previous columns, I’ve discussed the usefulness of title insurance, particularly in relation to claims and fraud scenarios. In this column, I would like to explore other situations where title insurance can help prior to closing, or even before the lender has issued a commitment. Read the story in The Title Page, October 28, 2015. Contributed by Eric Haslett, Vice-President, Commercial Solutions, FCT

 

Market Trends and Research

Manhattan’s Music Row goes silent

For decades, musicians from around the world flocked to a segment of West 48th Street in Manhattan known as Music Row. Both sides of the block, just off Times Square, were lined with shops that sold and repaired guitars, drums, keyboards and other instruments. But the music finally died there in December when the last holdout, Alex Carozza, moved off the block. 

Globe and Mail

Aussie CRE sales fall short of 2014 record

After a record-breaking year for commercial property transactions in 2014, the sector fell “just four per cent shy” of the $29.6 billion tally, in 2015, research reveals. CBRE‘s head of research, Australia, Stephen McNabb, said foreign investors accounted for $11.7 billion of the $28.4 billion spent on commercial properties valued at more than $5 million.

Money Management

Why so many new U.S. hotels?

Why are we seeing a significant rise in the number of hotel projects under development? In what markets are the majority of these projects concentrated? GlobeSt.com caught up with Suzanne Amaducci-Adams, the Real Estate & Hospitality practice group leader at Miami-based law firm Bilzin Sumberg, to get her thoughts on the topic.

Globest.com – National Real Estate Investor

Real Estate Companies

Regina’s StorageVault completes acquisitions

Regina-based StorageVault Canada (SVI-X) announced the closing of its $18.4-million acquisition of the Brampton, Ont., assets of Access Self Storage, plus a Winnipeg self-storage store for $5.6 million, as well as the final tranche of its $17-million common share private placement.

Regina Leader-Post

Ashes of Tampa’s cigar industry for sale

As luxury apartments and new housing developments spring up all over the region, a few grand old buildings stand as solid reminders of what helped make Tampa the city it is today. Once they were the factories where thousands of workers hand-rolled Cuban tobacco into the finest cigars money could buy. Today, two of them are for sale.

Globe and Mail

REOC Financial Reports

	REITs & REOCs – Third-quarter 2015 report
	RENX has prepared a table with a convenient list of the companies and a summary of links to their reports that will be updated quarterly. Fourth-quarter results will be available at the end of January, 2016. Canadian REITs & REOCs – Third-quarter 2015 report

 

Real Estate Investment Trusts

AHIP completes acquisition of Nebraska hotel

American Hotel Income Properties REIT LP (HOT.UN-T) announced today the completion of its previously announced acquisition of a 133-room rail crew hotel located in Lincoln, Neb., for an aggregate purchase price of US$3.9 million, including approximately US$1.2 million of planned capital expenditures and excluding closing and post-acquisition adjustments.

Canada Newswire

JLL REIT buys stake in 15-building retail package

A JLL real estate investment trust closed on the purchase of 13.7 per cent stake in a 15-building retail portfolio across the five boroughs and New Jersey owned by Forest City Enterprises and Ronald Dickerman’s Madison International Realty, valuing the package at $1.3 billion. JLL Income Property Trust bought the stake from Madison International.

The Real Deal

Multi-family bolstering latest REIT: Inland exec

JoAnn McGuinness, executive vice-president of Inland Real Estate Investment Corp., a sponsor of non-listed REITs and private partnerships, has worked with each of the seven REITs sponsored by Inland during her 23-year tenure with the company. As the company embarks on its newest REIT, Inland Residential Properties Trust, Inc., McGuinness spoke to REIT.com:

REIT.com

Legal Corner

Freshii facing lawsuit from Vancouver-area franchisees

Healthy fast food purveyor Freshii Inc. is being sued by franchise holders for the Vancouver area, who allege the food chain allegedly reneged on a planned master franchise agreement with the group. Three Fresh Guys Inc., which operates five Freshii restaurants in greater Vancouver, issued a statement of claim against Freshii on Dec. 11.

Financial Post

Retail

Jean Coutu warns of proposed drug changes

Quebec pharmacy leader Jean Coutu (PJC.A-T) posted improved third-quarter profits Thursday but warned that could change if the provincial government continues to look for savings by tinkering with the drug distribution system. Chief executive Francois Coutu described the relationship between the industry and the province as “unpredictable,” making it difficult to fully anticipate the impact on its operations.

Montreal Gazette

Wayfair launches Canadian website

Home decor stores in Canada have a new competitor – U.S. online retailer Wayfair (W-N). Wayfair officially launched a Canadian website Thursday morning, claiming to offer more than seven million items for the home from more than 7,000 suppliers, including a network of Canadian suppliers. 

Toronto Star

Latest reports:

* American Eagle Outfitters Inc., (AEO-N), Bloomberg 

* Reitmans Canada, Canada Newswire

*  Toys R Us, Winnipeg Free Press

New Development

Durham police get state-of-the-art home

A new Durham Regional Police complex in Clarington, Ont., has become reality after more than a decade of plans and discussion to make the vision come to life. The first phase of the complex features a 41,950-square-foot Clarington East Division building and a 21,680 square foot Forensic Investigation Facility (FIF).

Daily Commercial News

Technology

Professor unveils tiny ‘lab on a chip’

That old saying about a messy desk being a sign of creative genius must be true, because Muthukumaran Packirisamy’s postage-stamp-size office is nothing if not cluttered. The Concordia University prof has essentially condensed a laboratory’s worth of diagnostic equipment into something that fits into the palm of a person’s hand.

Montreal Gazette

D-BOX seats rumbling their way into more cinemas

D-BOX Technologies Inc., (DBO-T), a Montreal-based company whose motion-sensor seats are increasingly a part of a movie-going experience, considers its team of motion designers as much musicians as technicians. “There’s an artistic spin to it,” said Michel Paquette, vice-president of marketing.

Financial Post

Other

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