Some mall owners may welcome speedy Sears exit

Some mall owners may welcome speedy Sears exit

Some big mall owners may pay Sears Canada (SCC-T) to take an early exit. “The Sears story is not all negative,” said Ryan Zacharuk, Altus Group‘s senior director and general manager. He noted Sears pays “substantially lower lease rates” than could be obtained in today’s market. Some Sears anchor leases can run for up to 50 years.

Western Investor – Reuters – CTV

Self-storage industry booming in Canada

The basement, wrote the French philosopher Gaston Bachelard in The Poetics of Space, “is first and foremost the dark entity of the house, the one that partakes of subterranean forces. When we dream there, we are in harmony with the irrationality of the depths.” Imagine what Bachelard might say we dream of when we dream in our self-storage lockers.

Maclean’s – Property Biz Canada – The Apartment Building Expert

Ecommerce, tech revolution transforming CRE: Avison Young

Electronic commerce tools continue to transform how people shop and how goods are stored, marketed and shipped, while demand for logistics space has never been stronger in Metro Vancouver. Emerging tech such as big data, automation and artificial intelligence are changing where and how we work, while also reformulating business models, said Avison Young‘s Amy Erixon.

Property Biz Canada – Property Biz Canada – Property Biz Canada – Property Biz Canada

Shopify expands lease at Toronto’s King Portland Centre

Canadian ecommerce giant Shopify (SHOP-T) is expanding again, adding more than 46,000 square feet to its leasing commitment at the King Portland Centre currently under development in Toronto. King Portland co-owners Allied Properties REIT (AP.UN-T) and RioCan REIT (REI.UN-T) announced the Ottawa-based tech firm will expand its previously announced lease by 46,234 square feet to a total of 158,520 square feet.  

Property Biz Canada – Property Biz Canada – Property Biz Canada – Property Biz Canada

Former home of Saskatoon’s Patricia Hotel for sale

More than four years after its owners said they would wait until “the dust settles a bit” to announce development plans for the former home of the Patricia Hotel, the downtown lots are for sale for more than $6.2 million. The hotel was torn down in 2013 and the vacant lot has been used for parking ever since.

Saskatoon StarPhoenix

Edmonton bending rules for development near LRT: Councillor

With a 22-storey tower near a row of bungalows, critics worry Edmonton’s new Holyrood Gardens proposal is bending city rules already and could radically shift expectations around neighbourhood-level LRT stations. “This is putting towers next to single-family houses (and) that’s a neighbourhood stop,” said Ward 8 Coun. Ben Henderson, worried land prices around other stops will skyrocket.

Edmonton Journal

IBI Group grows into new office space

The Calgary office of IBI Group has relocated its 120 employees to the spacious fifth floor of the Meredith Block. IBI Group was founded in 1974 with offices in Vancouver and Toronto. The Calgary office opened in 1977, and is today part of a worldwide company comprising 2,500 employees in 64 offices.

Calgary Herald

City of Calgary renting out parking lots

Reduced demand for parking during the recession has the Calgary Parking Authority looking at other ways of making money from its facilities. The city-owned agency is trying to ramp up its event rental business. The CPA’s revenue from its parkades and surface lots dropped by more than $4.2 million from 2015 to 2016. 

CBC

Wing Kei continues growth with purchase of Calgary site

Donald Jung died last year, but his contributions to the City of Calgary continue with the growth of the Wing Kei Nursing Home Association. Jung, who came to Calgary in 1960, later owned eight gas stations, convenience stores and other commercial properties. Jung’s dreamed of building a home for Chinese seniors was realized when the Wing Kei Care Centre opened.

Calgary Herald

No end in sight for B.C. wildfires

Friday marked two weeks since raging wildfires that have displaced thousands of people British Columbia forced the province to call a state of emergency. On Wednesday, Premier John Horgan said he would extend the order for an additional two weeks since many of the 43,000 who fled their homes in the province’s Interior are not yet able to return.

Globe and Mail – CBC – CBC – CBC

Fronsac REIT acquires two Quebec service stations

Fronsac REIT (GAZ.UN-X) announced the acquisition of two service stations in St-Eustache, Que. Both properties are strategically located on heavily trafficked arteries and operate under the Petro-Canada and Esso banners. Total consideration paid for these properties was $3,525,000 and was settled in cash. The properties were purchased from a third party with no previous ties to Fronsac. 

Marketwired – Property Biz Canada – Property Biz Canada – Property Biz Canada

Hydro One signs blockbuster deal to buy Avista

Hydro One Ltd. (H-T) has signed a friendly deal to acquire U.S. energy company Avista Corp. (AVA-N) for $6.7 billion in an all-cash deal that would create one of the largest regulated utilities in North America. The Toronto-based company said Wednesday after the close of markets that it will pay $67 per share in cash for the U.S. firm.

CTV – Financial Post – Globe and Mail – Globe and Mail (Subscription required)

More Canadian RE cash going to foreign companies

Canadian real estate companies are making a smaller share of the pie. The 2015 numbers released under the Corporations Returns Act show increasing control by foreign companies in real estate, rental, and leasing. Foreign firms saw $14.21 billion of revenue in 2015, a 34% increase from the year prior. Canadian companies took in $86.78 billion in revenue.

Better Dwelling

U.S. office, industrial sales hold steady

U.S. investors continued to buy less commercial real estate in both the second quarter and the first half of 2017 compared to the same periods a year ago, a trend that started in 2016 as steady fundamentals that have resulted in generally robust occupancies and rental rate gains have boosted valuations across most property types. 

CoStar Group

New L.A. tower built to stringent seismic standards

The soon-to-open Wilshire Grand, at 1,100 feet, is the tallest building west of the Mississippi River. The 73-floor structure was built to stringent seismic standards, as it rests near the San Andreas Fault. The building has bracing in three places to ensure it won’t collapse, and the foundations had to be fortified beyond those of a typical skyscraper.

Building Design & Construction

Market Trends and Research

Calgary Beltlline office market suffers rough Q2

Following two consecutive quarters of positive absorption, Calgary’s Beltline market witnessed net absorption totalling 115,000 square feet of office space during Q2 2017. In contrast with the first quarter, the majority of activity was in the sublease market and was largely confined to spaces in class-A buildings.

Barclay Street Real Estate media release

Will U.S. MOB continue to support rich deals?

As foreign investors, REITs and other institutional buyers rush to scoop up medical office building (MOB) space and develop urgent care and other ambulatory care facilities, the growing pool of buyers competing for a limited number of available properties is driving capitalization rates lower. 

CoStar Group

U.S. hotel, Browns’ stadium may sport flammable panels

In promotional brochures, a U.S. company boasted of the “stunning visual effect” its shimmering aluminum panels created in the Cleveland Browns’ NFL stadium, an Alaskan high school and a luxury hotel along Baltimore’s Inner Harbor that “soars 33 stories into the air.” Those same panels also were used in the Grenfell Tower apartment building in London.

Associated Press

REOC Financial Reports

Latest financial results:

* Mainstreet Equity Corp, (MEQ-T), Canada Newswire

Real Estate Investment Trusts

Elevated U.S. equity REIT bank borrowing bears close watch

Much has been made in the equity REIT sector about the strength of the unsecured debt market since 2010, and the sector’s ability to access it with relative ease and frequency. One element equity REITs have been unsuccessful in capitalizing on, however, is the strength of the unsecured bond market to reduce bank borrowings. 

CP Executive

Retail

Patient investors in Jean Coutu will be rewarded

The tougher things get for Jean Coutu Group Inc., (PJC.A-T) the more it makes sense for the Quebec-based drugstore chain to find a partner. The latest challenge comes from the Quebec government, which announced it will slash its spending on generic drugs by about 35 per cent, saving the government $1.5 billion over five years. 

Globe and Mail (Subscription required)

Regulators not expected to oppose Amazon’s Whole Foods deal

Amazon‘s (AMZN-Q) $13.7 billion US deal for the organic grocer Whole Foods Market (WFM-Q) could easily hurt both Amazon’s existing rivals and future startups that might one day challenge it. Yet experts don’t believe U.S. anti-trust regulators will oppose the deal. That’s largely because it doesn’t create anything resembling a traditional monopoly. 

Toronto Star

New Development

Victoria revitalization plan aims to unpave paradise

The City of Victoria hopes to replace a parking lot with a bit of paradise as it revitalizes Ship Point. The parking lot provides parked cars with some of the best views in the city. The design concept envisions a new pavilion to the north end of the site, providing the lower level with a year-round commercial building.

Victoria Time Colonist

Renovation and Restoration

New food courting coming to Devonshire Mall

Hungry shoppers will be able to grab a bite to eat at Devonshire Mall’s new food court next summer. The food court redevelopment, located in the former Target space, will house 15 retailers, rather than the current 12. The food court redevelopment is part of a $70-million renovation. The first phase — a Metro grocery store — will open Aug. 24.

Windsor Star

Infrastructure

Calgary considers federal cash for Airport Trail expansion

City council will be asked Monday to seek federal funds to complete Airport Trail. The federal government is now taking applications for a new fund for “national trade corridors.” The fund was announced in the 2016 federal budget. It’s designed to support the movement of goods and passengers by reducing transportation bottlenecks and dealing with capacity issues.

CBC

Other

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