Downtown Vancouver offices to test price ceiling

Downtown Vancouver offices to test price ceiling

In 18 months, Vancouver’s downtown office vacancy rate has been cut in half, plunging to five per cent, the second-lowest in North America, and accelerating a new cycle of speculative tower construction. The unprecedented demand could also lead to record-high lease rates in the core with suggestions prime rents could top $50 per square foot.

Business In Vancouver – Business In Vancouver – Property Biz Canada

IQ Office Suites joins rush for Vancouver co-working space

A Toronto-based office co-working company is expanding into downtown Vancouver, aiming to tap into an increasingly competitive market that’s dealing with plummeting vacancy rates. IQ Office Suites is renovating the entire 21st floor of the Royal Centre office tower at 1055 West Georgia Street in Vancouver’s financial district. “We have people moving in (this) week, on Nov. 1,” said Kane Willmott, the company’s co-founder.

Property Biz Canada

Canada’s first Club Med coming to Quebec

The very first Club Med ski resort in Canada is coming to Quebec’s Charlevoix region. On Thursday, the company, along with representatives from various levels of government, announced it is building a resort at the foot of Le Massif de Charlevoix ski hill.  In March, Groupe Le Massif and the directors of Club Med announced they came to an agreement for a $120 million project that would include a 300-room hotel.

CBC – CTV

B.C. ski resort can be built on sacred land: Supreme Court

Building a large ski resort on B.C. land considered sacred to a First Nation does not breach religious rights, the Supreme Court of Canada said in a decision released Thursday. The landmark decision could pave the way for development of the Jumbo Glacier resort in the Kootenays region, despite strong objections from the Ktunaxa Nation. The project still has to clear environmental and other regulatory hurdles in order to proceed.

CBC – Globe and Mail – Globe and Mail

B.C. ski resort leads crowdfunding to snub Vail

A tiny Canadian ski resort forged by Scandinavian miners chasing an 1890s gold rush is the recipient of a record equity crowdfunding raise, tapping into skiers’ quest to fend off a wave of consolidation led by Vail Resorts Inc. Investors are lining up to buy a piece of Red Mountain Resort in Rossland, B.C., drawn by its rebellious pitch of “Fight the Man, Own the Mountain.”

Bloomberg

New B.C. ski resort delayed until 2020

The provincial government approved construction of a new $100 million skiing destination near Valemount, B.C., last year, but it will be another three years before Valemount Glacier Destinations Ltd. welcomes its first skiers. The glacier resort will feature some impressive viewpoints, according to a Valemount Glacier Destinations press release.

Western Investor

Toronto’s hotel industry booming, too: CBRE

You’ve heard all about Toronto’s hot housing market over the years — well, the hotel industry in Canada’s largest city is booming, as well. Hotel investment across the country hit a record-setting level last year with more than $4 billion in hotel transactions, according to commercial real estate services company CBRE, and another $2.8 billion worth of business deals recorded so far this year.

CBC – Property Biz Canada – Property Biz Canada – CP Executive

Chartwell retirement home to anchor Quebec City mall

A shopping mall in a Quebec City suburb is being redeveloped and will include a new retirement residence as part of a $100-million mixed-use project. Chartwell Retirement Residences is spending $78.5 million to build a 360-unit retirement home in Cap-Rouge, a borough of Quebec City, while developer Immostar is redeveloping the 42-year-old Mail Cap-Rouge (Cap Rouge Mall).

Property Biz Canada

BTB acquires Quebec retail power centre

BTB Real Estate Investment Trust announced the acquisition of a retail power center known as the Carrefour Saint-Romuald in Lévis, Qué. This $35.9-million transaction, excluding transaction fees, brings to 71 the number of properties owned by the Trust. This accretive acquisition is in line with BTB’s strategic review where it is selling its smaller properties while purchasing larger properties maximizing financial performance. 

Canada Newswire

Firm Capital acquires Guelph retail property

Firm Capital Property Trust announced the purchase of a 100 per cent interest in a 115,838-square-foot grocery-anchored retail property located in Guelph, Ont. The acquisition price of the property is approximately $26.0 million, excluding transaction costs. The property is being acquired at a 6.9% capitalization rate. The acquisition is expected to close during the fourth quarter of 2017.

Globe Newswire

Huge Alberta homebuilder falls into receivership

One of Alberta’s largest homebuilders lost its battle to restructure its debt Thursday and fell into receivership after the Royal Bank of Canada sought to collect more than $64.6 million. An Edmonton judge granted a consent order that will allow a receiver — Alvarez & Marsal Canada — to take control of the assets of several companies associated with ReidBuilt Homes, including ReidBuilt Homes Calgary, and Builder’s Direct Supply.

CBC

Darlington nuclear plant receives $13-billion overhaul

Ontario’s 18 nuclear reactors provide 60 per cent of the province’s electricity. The two most prolific power plants (whose Candu reactors run on natural uranium, which can’t be used in bombs) are aging. The Bruce Nuclear Generating Station‘s first reactor came online in 1977, Darlington’s in 1990. Last year, Ontario Power Generation embarked on a 10-year, $12.8-billion refurbishment of Darlington’s four reactors — which provide enough juice for two million people.

Globe and Mail (Subscription required)

HBC should accept $4.5B offer for Kaufhof: Investor

Activist investor Land & Buildings Investment Management wants Hudson’s Bay Co. to “seriously consider” a bid it values at $4.49 billion for the Canadian retailer’s German department store chain and other real estate assets — at a value about 40 per cent higher than its original purchase price. The unsolicited offer for the Galeria Kaufhof chain comes from European retail competitor Signa Holding.

CTV – Toronto Star – Globe and Mail

Brookfield Capital invests in Total Building

Brookfield Capital Partners, private equity arm of Brookfield Asset Management, has invested in Bengaluru-based real estate developer Total Environment Building Systems’ portfolio of five projects spread over 4.5 million square feet.  The deal was closed last week, two sources told ET. Dev Santani, senior vice-president, Real Estate at Brookfield Asset Management, declined comment, citing corporate policy. 

Economic Times

After inking CPPIB deal, IndoSpace raising third fund

Almost six months after signing a $1.3 billion deal with Canada Pension Fund Investment Board (CPPIB), industrial real estate developer IndoSpace is raising its third fund for $550 million, according to company executives. Almost $300 million have already been committed for this new fund in its first round of closing and the target is to achieve full and final closure in the next few months, the executives added.

Financial Express – Livemint

Featured Column

Anatomy of a commercial real estate brokerage

A recent trip by our Saskatoon ICR crew to Regina to experience the shiny new Mosaic Stadium and support our Riders led to an interesting piece of insight. It was sparked by a colleague’s account, as we also toured Regina’s new ICR office, of an earlier visit by another commercial real estate broker.

Read more

Market Trends and Research

Uncertainty, cautious optimism surround Aecon deal

Industry leaders, economists and analysts are uncertain about what the future holds in the wake of Aecon Group’s announcement that it was acquired by China Communications Construction Company International (CCCI) for $1.5 billion. Some are concerned the Canadian construction sector is for sale, while others are pointing out new opportunities.

Daily Commercial News – Toronto Star

CRE investors making fewer big deals, but raising more money

The amount of uncalled or undrawn real estate investment capital, or “dry powder,” has grown to staggering levels. This increase has come at a time when the investment climate remains decidedly mixed, with top-quality assets in core markets commanding high valuations after a sustained up-cycle. As a result, investors are increasingly searching elsewhere for properties that offer potentially higher yields. The effects are showing up in deal volume.

CoStar Group – National Real Estate Investor – GlobeSt.com

Real Estate Companies

Mainstreet acquires U.S. transitional care portfolio

Mainstreet Health Investments Inc. announced it has entered into a definitive agreement to acquire three state-of-the-art post-acute transitional care facilities  from Mainstreet Property Group, LLC for a price of approximately US$67.0 million. The company has the right to acquire the properties as a result of the mezzanine debt investments made pursuant to its development agreement with MPG.

Canada Newswire

Richardson acquires new retail outlets in Alta., Sask.

Richardson International Limited continues to expand its retail crop inputs network on the Prairies with the acquisition of 10 more outlets. The Winnipeg-based agri-business giant acquired the retail outlets — nine in Alberta and one in Saskatchewan — from CHS Canada LP. The transaction is expected to close in November.

Winnipeg Free Press

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REIT Financial Reports

Latest results:

* Allied Properties REIT, Marketwired

* CREIT, Globe Newswire

* Melcor REIT, Marketwired

* Morguard REIT, Canada Newswire

* RioCan REIT, Globe Newswire

Real Estate Investment Trusts

U.S. industrial boom has room to grow

As e-commerce continues to take up market share in the retail space, the industrial sector is benefiting from increased demand for space, making the property type a hot commodity. Panelists at the 2017 ULI Fall Meeting in Los Angeles discussed their largely optimistic perspectives on the industrial sector’s prospects, but also acknowledged the challenges that come along with their business.

CP Executive – GlobeSt.com – GlobeSt.com

U.S. industrial REITs benefit from rising warehouse demand

In Moody’s view, US industrial REITs are well-positioned to capitalize on the robust demand for distribution space amid rising e-commerce sales. Sector fundamentals continue to be healthy, with positive levels of net absorption and record-low vacancy levels. While there is new supply coming, rent growth for industrial real estate should continue to strengthen, particularly in core distribution markets. 

CP Executive

Retail

Bread price-fixing investigation part of bigger food fight

A bread cartel is alive and well in Canada; or is it? The Competition Bureau is carrying out an investigation of major grocery chains in search of evidence of retail price fixing. Loblaws, Sobeys, Metro, Wal-Mart and other companies have acknowledged the continuing investigation. The outcome of this inquiry will likely not amount to much, but it does beg the question of why bread is being targeted by the bureau.

Globe and Mail

Rent-A-Center weighing options for 2,500-store chain

Rent-A-Center Inc., one of the U.S.’ largest rent-to-own store operators, announced plans to consider options including a sale of the chain which operates approximately 2,500 stores in the U.S., Mexico, Canada and Puerto Rico. The board’s decision follows calls from activist investors to put the company up for sale after reportedly declining buyout offers from a handful of private equity firms this year.

CoStar Group

Restaurants and Eateries

Starbucks sales disappoint, shares drop six per cent

Starbucks Corp reported disappointing quarterly results Thursday, after hurricanes cooled sales and amid a bitter battle with competitors ranging from boutique coffee seller Intelligentsia to lower-price rivals like McDonald’s. Total revenue missed Wall Street targets and sales at established global cafes were up two per cent, missing analysts’ average target of 3.2 per cent, according to Consensus Metrix.

Globe and Mail – Canada Newswire

New Development

Winnipeg’s West End Cultural Centre still going strong

Back in October 1987, a ramshackle old church on the corner of Sherbrook Street and Ellice Avenue reopened its doors as the West End Cultural Centre. The paint was still drying on the walls when patrons first walked through the doors and heard live music in what would become one of the most cherished listening rooms in the country.

Winnipeg Free Press

Olde Walkerville is rebounding from a recession

Mike Brkovich doesn’t have a square foot of office space to rent out in any of the buildings he owns in the Olde Walkerville area. Not bad, considering the Windsor native has watched the neighbourhood bounce back from vacant shops in the ’90s and a recession that saw some stores flee the area.

CBC – CBC – CBC

Infrastructure

Ontario seeks input to modernize GGH transportation system

The provincial government is seeking public input on a draft set of long-term goals and objectives for the Greater Golden Horseshoe (GGH) Transportation Plan. The input collected through the consultation will inform the development of transportation options for the way people and goods move throughout the region, explains a release. 

Daily Commercial News

B.C.’s Site C dam project could run 50 per cent over budget

BC Hydro’s claims the construction of the Site C dam will not drive up its customers’ energy rates have been shot down by an independent regulatory review, just one of several of the Crown corporation’s assumptions about the project that were demolished by the B.C. Utilities Commission in a report on Wednesday. The BCUC report also raised serious questions about the cost to complete the megaproject.

Globe and Mail – Globe and Mail

Other

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