BMO, CF redeveloping Sears’ former head office

BMO, CF redeveloping Sears’ former head office

The Bank of Montreal (BMO-T) and Cadillac-Fairview Thursday are set to announce the financial institution is taking over 350,000 square feet of space at Sears’ former head office, CoStar News has learned. Multiple sources have confirmed the bank is planning to join with Cadillac-Fairview in a major redevelopment of the former Sears Canada space at 290 Yonge St. 

CoStar Group

Smart REITs playing land development card: Russo

REITs weighted towards commercial and mixed-use real estate sectors in big Canadian cities could see returns as high as 15 per cent this year, according to Toronto-based Timbercreek Asset Management. “Large cities in Canada are currently experiencing a wave of gentrification,” senior managing director Corrado Russo said. “This is creating a number of compelling opportunities for REITs to experience outsized growth and offer increasing value for investors.”

Western Investor

Ottawa’s Regional Group banks on Vanier resurgence

The East Ottawa neighbourhood of Vanier is not often associated with the word “trendy.” However, the Regional Group of Companies is among a group of developers who see signs of promise in one of the National Capital’s most downtrodden districts. Regional has invested in several Vanier properties along busy Montreal Road, just east of Ottawa’s central business district and less than two kilometres from Parliament Hill.

Property Biz Canada

PC Urban to offer industrial condos in Calgary

A 5.6-acre business park in central Calgary will be converted into industrial condos by Vancouver-based developer PC Urban Properties Corp. The company plans to renovate two aging industrial buildings, comprising 111,000 square feet, into a refurbished business park where companies can own their own spaces.

Property Biz Canada

Cryptocurrency could help Calgary office vacancy problem

A Calgary real estate brokerage is offering what it says will be be the first office rental in Alberta to accept lease payments in cryptocurrencies.  Commercial real estate company Barclay Street is working with the owners of Real Equity Centre, an office building at 1716 16th Ave. N.W. in Calgary.

CBC – Barclay Street Real Estate media release – Globe and Mail

Saskatchewan eyes sale of Regina business park

The Saskatchewan government is considering selling Innovation Place’s Saskatoon campus to the University of Saskatchewan and its Regina business park to the University of Regina. Discussions about a possible sale of the buildings — owned by Saskatchewan Opportunities Corp., a provincial Crown corporation, and built on land leased from the universities — have been ongoing since at least December.

Saskatoon StarPhoenix

Canada to get its first net-positive energy office building

While GreenLife Del Ridge has emphasized small ecological footprints in its projects, president Dave de Sylva is going one step further. Howland Green Business Centre, on Cachet Woods Court near Highway 407 and 16th Avenue in Markham, Ont., at the marketing stage of development, will produce more energy than it uses, says the builder.

Sustainable Biz Canada

Metrolinx OKs controversial GO stations

Metrolinx is pushing ahead with plans to include two controversial GO Transit stations in a major expansion of the regional rail network, despite revelations that the former transportation minister interfered to win their initial approval. Metrolinx CEO Phil Verster announced after a second round of study the agency will recommend all 12 stations its board endorsed in 2016 should advance to the final planning stages of GO’s regional express rail program.

Toronto Star

TDSB challenges ‘unfair’ development-charge regulation

The Toronto District School Board is challenging a provincial regulation that prevents it from collecting millions of dollars in development charges to buy land for new schools where the student population is growing. The public school board filed an application in the Ontario Superior Court of Justice this week for a judicial review, arguing that the regulation is “unfair” and that it be declared “constitutionally inoperative.”

Globe and Mail

Airbnb is taking lessons from hotel industry

The experience of staying in an Airbnb listing is simultaneously an argument for and against the platform. On the one hand, every space is unique and quirky; on the other hand, unique and quirky can sometimes pose challenges on a massive scale. The struggle to overcome those challenges was on display last week when the 10-year-old company threw itself a three-day birthday celebration to unveil a slew of improvements.

Globe and Mail

Starwood Capital Group acquires Hilton U.K. portfolio

Starwood Capital Group, a leading global private investment firm, announced Tuesday a controlled affiliate of Starwood Global Opportunity Fund XI has acquired a portfolio of seven Hilton hotels throughout the United Kingdom, totalling more than 1,300 rooms from Park Hotels & Resorts for $239 million Cdn. The portfolio is located in several of the U.K.’s top hotel markets, including London, Edinburgh, Bath and Belfast.

PR Newswire

Newmark Knight Frank puts its money in Knotel

Newmark Knight Frank knows how to be flexible. The commercial real estate advisory firm has made a strategic investment in Knotel, a burgeoning provider of customized, flexible office space. The partnership will allow NKF to present its clients—tenants and owners alike—with new opportunities, as flexible accommodations continue to play an increasingly pivotal role in the office sector.

CP Executive

Empty U.S. storefronts leading to lower rents: Starbucks

Starbucks Corp. (SBUX-Q) chairman Howard Schultz sees a blessing in all the empty storefronts across the U.S. Facing a crush of vacancies — and the rise of e-commerce — retail landlords are beginning to cut rents, the executive said in a memo. That stands to benefit the world’s largest coffee chain, which has more than 14,000 U.S. locations.

Bloomberg – Reuters

U.S. office vacancies reach an all-time high

A recent office analysis shows a strikingly vulnerable national office sector with vacancies that have remained essentially unmoved in the past two years and rent growth slowing to its weakest pace in five years. These were the findings from data cruncher Ten-X Commercial in its latest US office market outlook, including the top five sell markets for office properties.

GlobeSt.com

London office sector shows signs of Brexit stress

While British PM Theresa May continues to beat the drum over the potential positives of Brexit, recently calling it “a bright new chapter” for Britain, some of the branches of the country’s CRE sector seem to be taking a wait-and-see approach. According to the 2018 forecast by Avison Young, the uncertainty’s effect on the office sector in London can be viewed in both positive and negative ways.

Globe and Mail – Bloomberg

Featured Column

Where are all the female commercial real estate agents?

I ask this question because I believe women bring great value to our profession. It’s difficult to locate the current ratio of female/male licensed real estate agents in Canada. A quick look at Saskatoon as an example; of the 60 individuals who work full time in commercial real estate sales as licensed agents, 13 per cent are female.

Read more

Market Trends and Research

Two more rate hikes coming in 2018: Poll

The Bank of Canada is on course to raise interest rates twice more this year as it aims to strike a balance between a stronger economy and a number of economic risks, including trade negotiations and new housing regulations, a Reuters poll found. The central bank has raised interest rates three times since last July, but policymakers have said repeatedly they will be cautious in considering further hikes.

Reuters

Real Estate Companies

Colliers International creates top tier player in Spain

Colliers International Group Inc. (CIGI-T), a global leader in commercial real estate services, Tuesday announced it has acquired a controlling interest in leading financial and strategic advisory firm, IREA Corporate Finance S.L. and merged its existing operations to create one of Spain’s top players in the real estate and hotel markets. The senior leaders of both operations will remain significant shareholders of the combined business.

Globe Newswire

REOC Financial Reports

Latest financial results:

* Dream Unlimited Corp., (DRM-T), Globe Newswire

* Vital Healthcare Property Trust, (NWH-UN-T), Canada Newswire

REIT Financial Reports

Latest financial results:

* CAPREIT, (CAR-UN-T), Globe Newswire

* Northview Apartment REIT, (NVU-UN-T), Globe Newswire

Real Estate Investment Trusts

BTB sells Drummondville property

BTB Real Estate Investment Trust (BTB-UN-T), further to the conclusions of its strategic review of its portfolio, announces the sale of a property located at 1100 and 1108-1136 St-Joseph Boulevard, Drummondville, Que., for total proceeds of $3.075 million. The net proceeds will be allocated to partially repay its outstanding lines of credit.

Canada Newswire

Multi-family REITs focus on garden-style communities

U.S. apartment REITs have significantly slowed down their acquisition and development activity, especially compared to earlier in this cycle. But when REITs do buy new buildings or start construction, they are showing a surprising focus on garden apartment properties. Equity Residential, one of the leading apartment REITs in the U.S., sold more properties than it bought in 2017.

National Real Estate Investor

Earn a six per cent yield with RioCan

The fear of Amazon.com, Inc. (AMZN-Q) destroying traditional retail is very real. A variety of retail REITs have seen their shares crater. RioCan REIT (REI-UN-T) has given up more than 12 per cent of its value over the past year. And if you look at the stock over a five-year period, before dividends, investors are down.

Motley Fool

Retail

Toys ‘R’ Us in talks to sell Asia unit

Toys “R” Us Inc., the retailer whose North American operations are in bankruptcy, is in talks to sell its growing Asian business to its local partner, people with knowledge of the matter said. The U.S. chain is in discussions to offload its 85 per cent stake in the Asian venture to Hong Kong’s billionaire Fung brothers, who own the remainder of the business, according to the sources.

Bloomberg – Bloomberg

Lowe’s forecasts further squeeze as results disappoint

Lowe’s Companies Inc.’s (LOW-N) profit and margins fell well short of Wall Street estimates on Wednesday as the No. 2 U.S. home improvement chain spent heavily to take on competition in an improving housing market. The company’s shares tumbled about 8 percent in premarket trading after Lowe’s forecast same-store sales growth would slow this year and operating margins would fall.

Reuters

Cannabis industry news

Canadian medical cannabis sector leading growth charge

Market research and consulting firm Ameri Research projects the global marijuana market will grow to $63.5 billion by 2024.  The Canadian medicinal cannabis market continues to be the poster child for the burgeoning cannabis industry as a whole on a global scale. With experts believing the continued growth is leading to new opportunities, as well as new players entering the space through licensing agreements.

PR Newswire – PR Newswire

New Development

Ottawa mixed-use redevelopment gets green light

A multi-million-dollar proposal to build a nine-storey mixed-use development next to the former All Saints Anglican Church in Sandy Hill is a big step closer to reality after the City of Ottawa’s planning committee gave the project the go-ahead on Tuesday. Full council still must approve the plan, which calls for a new mid-rise residential complex or hotel.

Ottawa Business Journal

Cineplex Rec Room coming to Newfoundland & Labrador

Cineplex (CGX-T) plans to build a new location of The Rec Room at Avalon Mall in St. John’s, Newfoundland and Labrador.  Scheduled to open in early 2019, the nearly 30,000-square-foot dining and entertainment complex will be The Rec Room’s seventh location in Canada and the first to open in Atlantic Canada.

Canada Newswire

Sports Venues

Edmonton approves permanent closure of Coliseum

Edmonton City Council on Tuesday approved the permanent closure of the Coliseum. “We’re examining the entirety of the exhibition lands through a few different processes, but, generally, the city is accepting any kind of ideas or proposals on what to do with that land, including the land that the Coliseum sits on,” Ward 9 Coun. Tim Cartmell said Tuesday.

Edmonton Journal

Four years later, Hamilton stadium still isn’t finished

It’s been nearly four years, the city says, and Hamilton’s Tim Hortons Field stadium still isn’t finished. There are still leaks to be fixed, and a railing to be replaced, said Rom D’Angelo, the city’s director of energy, fleet and facilities. There are also problems with the sound system. All of these issues are linked to the stadium’s original build. “We’re still working through a number of deficiencies,” D’Angelo said.

CBC

Other

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