Calgary’s tallest tower short on tenants

Calgary’s tallest tower short on tenants

A new skyscraper rising over Calgary will be the city’s tallest when construction is complete next year, but Brookfield Place is unlikely to be full. The $1.3-billion building’s largest tenant, oilsands producer Cenovus Energy Inc. (CVE-T), confirmed last week it would not need the amount of space it had previously agreed to occupy in 2013, before oil prices plummeted.

Financial Post

Office project breaks ground on Broadway corridor

Vancouver’s West Broadway corridor, one of the most difficult areas in the region in which to lease office space, is set to see its first large office project in at least five years. Developers recently broke ground on a 10-storey, 104,000-square-foot office tower, a joint ownership venture between the Bosa family’s BlueSky Properties and Quebec-based Industrial Alliance.

Vancouver Sun – Vancouver Sun

Time ripe for Canadian investment: Sahi

Despite a stumbling economy, Morguard Corporation chairman and chief executive officer K. Rai Sahi has his sights firmly set on Canada. To that end, Morguard (MRC-T) has finalized an agreement to acquire three hotels near Toronto’sPearson International Airport for $33.5 million, excluding closing costs.

Property Biz Canada

Reliance betting on Vancouver property

There’s a story behind every sale, and in the case of 501 Dunsmuir Street – which Reliance Properties Ltd. recently purchased – the best part of the tale may be yet to come. The two-storey property, home to eateries and private learning centres and kitty-corner to Holy Rosary Cathedral and opposite the old Dunsmuir Hotel, it’s dwarfed by its Vancouver neighbours.

Business In Vancouver

Maplewood REIT has conditional offer on Holland property

Maplewood International Real Estate Investment Trust (MWI.UN-X) has executed a conditional purchase offer on its Netherlands property in the amount of $1.1 billion Cdn from a prominent and highly experienced European real estate private equity firm with more than $1.4 billion of assets under management and at arm’s length to the REIT.

Marketwired

BTB REIT acquires Montreal office property

BTB Real Estate Investment Trust (BTB.UN-T) announced the purchase of 2101 Ste-Catherine West, an office building in downtown Montréal. With a total leasable area of more than 52,500 square feet, the fully renovated office building is entirely leased to Technicolor Canada Inc. This $11-million transaction brings to 72 the number of properties owned by BTB.

Canada Newswire

Michaels signs lease at OneREIT’s Orangeville Mall

OneREIT (ONR.UN-T) announced it has entered into a binding lease agreement for a 19,000-square-foot Michaels at Orangeville Mall. The lease has an initial term of 10 years with additional renewal options. Michaels’ anticipated opening is fall 2016 and will be located in the former Zellers space at the shopping centre.

Marketwired

CPPIB, GLP set up Japan logistics fund

Singapore’s Global Logistic Properties and Canada Pension Plan Investment Board (CPPIB) have set up a $1.2 billion Cdn fund to develop modern warehouses in Japan, their second joint venture in the country. Helped by debt financing, the fund’s assets are expected to reach $2 billion over three years, GLP and CPPIB said.

Reuters – IPE Real Estate

Behind RioCan’s decision to redeem rate reset preferreds

A piece of financial history will be made next month when RioCan Real Estate Investment Trust (REI.UN-T) redeems an issue of cumulative rate reset preferred trust units. RioCan REIT holders will receive the return of their original $125 million investment plus the payment of the quarterly distribution. 

Financial Post

Toronto’s tech startup scene in ‘blossom state’

While the country’s most populous city hosts between 2,500 and 4,100 active tech startups, none of them has reached the billion-dollar valuation threshold required to hoist them into the coveted ranks of world-beaters. The Canadian unicorns – Shopify, Kik, Hootsuite and D2L – have satellite offices in Toronto, as do U.S. giants IBM, Apple, Google, Facebook and Twitter.

Globe and Mail – Reuters – Ottawa Citizen

Downtown Toronto went all in with a pair of Kings

Paul Bedford believed so much in the “Two Kings” in Toronto he put his career on the line. Although the plan ended up working from the start and he later was promoted to the city’s chief planner, he admits now he had “the fear of God” in him, especially when author Jane Jacobs told him and then-mayor Barbara Hall, “This better work!”

Globe and Mail

U.S. expansion key for Tim Hortons owner

After a strong 2015, Restaurant Brands International (QSR-T) says it is ready to grow Tim Hortons aggressively in the U.S. this year. “The (U.S.) is the world’s largest quick-service restaurant market and we have only 600 Tim Hortons, and we are really excited about the pace of future growth in the U.S.,” CEO Daniel Schwartz said in an interview Tuesday.

Financial Post – Toronto Star – Bloomberg – Reuters

Saks braces for battle in crowded luxury market

Saks president Marc Metrick is touring the almost-finished Toronto store before Hudson’s Bay Co. (HBC-T), which bought Saks Inc. in late 2013, launches the first Saks Fifth Avenue in Canada on Thursday, raising the stakes in the country’s increasingly crowded luxury fashion market.

Globe and Mail – Maclean’s – Toronto Star – Financial Post

Wal-Mart stumbles hard in Brazil

When Wal-Mart Stores Inc. (WMT-N) first expanded into Brazil’s midwestern farm-belt city of Campo Grande seven years ago, the economy was booming and executives were eager to open stores even in sub-prime locations on one-way streets heading out of town. It didn’t last. 

Reuters – MarketWatch

British Pacific president knows his turf

Winding through the forest west of Cypress Bowl Road in his black Lexus GX 460, on the slopes below Eagle Lake, British Pacific Properties Ltd. president Geoff Croll speaks with intimate knowledge of the surrounding landscape. A civil engineer by training, he has worked with the land his entire professional life.

Business In Vancouver

Featured Column

Is Saskatoon real estate still a good bet?

I’m not much of a gambler, but I’m game to make a few wagers on the immediate future of commercial real estate in Saskatoon. I still thinking putting money in our market is a safe bet, but there are some important items to consider.

Read more

The project sales team is your secret weapon

For years now, in the real world outside planning documents, timelines and spreadsheets, the disconnect between sales and marketing has been pronounced and dysfunctional. If you can fix this in your project, it will be your secret weapon.

Read more

Market Trends and Research

Oil storage tank industry provides rare optimism in Alberta

Alberta’s oil storage tanks aren’t brimming with crude like their U.S. counterparts, but the business is still one of the bright spots amid the oilpatch’s devastating downturn. “Storage has been one of the few growing investments in midstreams since the downturn,” said Steven Paget, an analyst at FirstEnergy Capital Corp.

CTV News

Kanata North a ‘magnet:’ Report

Companies in Kanata North generate $7.8 billion in economic activity each year and employ more than 30,000, according to a new study. The tech sector alone accounts for $6.6 billion of that total and provides jobs for more than 26,000, or about one-third of the total number of tech workers in the Ottawa region, says the Doyletech Corporation report.

Ottawa Business Journal

More Silicon Valley startups to find their way to Waterloo

Recently, San Francisco-based Everalbum announced its purchase of Waterloo, Ont.’s Pout, a two-person startup that developed a photo-sharing app for fashion enthusiasts. It marks the second move in Everalbum’s recent push into the Kitchener-Waterloo region — one the company’s co-founder, Andrew Dudum, said could lead to half his employees working in Canada. 

Financial Post

Perhaps downsizing space isn’t the answer

A new white paper by Newmark Grubb Knight Frank has connected a few dots about rightsizing: when companies, or the federal government for that matter, squeeze too many employees into a space, productivity declines. NGKF established the margin is surprisingly thin between productivity and the savings, or conversely additional rent paid for better space.

Globest.com

Real Estate Companies

Canada misses out on new auto assembly plants

Investment by auto makers in Canada doubled last year from 2014 levels, but the country failed to win any of the three new North American assembly plants, pushing Canada’s losing streak for new plants to a decade. Auto makers announced investments worth $1.5 billion US in their existing Canadian factories in 2015, according to the Center for Automotive Research.

Globe and Mail

Mxi opens American HQ in Texas

Mxi Technologies, an Ottawa aviation software firm, opened its new U.S. headquarters this week in Irving, Texas. Increasing demand for its Maintenix software from U.S. civil and defence aviation clients prompted the firm to open up shop in the Dallas suburb, CEO Bill Cavitt said.

Ottawa Business Journal

FN make offer on B.C. Jericho lands

The Musqueam, Squamish and Tsleil-Waututh First Nations, which already co-own a chunk of former federal lands in West Point Grey – the Jericho lands – are hoping to expand their holdings by adding adjoining provincial land. The B.C. government has received a letter of intent from the three First Nations to buy 38.8 acres next to the existing federal Jericho lands.

Business In Vancouver

HSBC rejects move to Hong Kong

Banking group HSBC Holdings (HSBC-N) has decided to keep its headquarters in Britain, rejecting the option of shifting its centre of gravity back to main profit-generating hub Hong Kong after a 10-month review. The decision by HSBC’s board, which Europe’s biggest bank said was unanimous, gives a boost to London’s status as a global financial centre.

Reuters – Reuters

Veritas secures financing for San Fran portfolio

Veritas Investments Inc. truly knows how to attract lenders willing to part with the big bucks. The multi-family, retail and mixed-use property owner and operator just obtained financing to the tune of $815 million for a mixed-asset portfolio, marking the largest transaction of its kind in San Francisco — ever.

Commercial Property Executive

Taiwan insurers push for relaxation of limits

Taiwan insurance companies are pushing regulators to relax restrictions on investments in overseas real estate. Insurers were allowed to invest in offshore real estate for the first time in 2013, but they are now arguing in favour of lifting the cap on overseas real estate investments.

IPE Real Estate

REOC Financial Reports

REIT Financial Reports

Latest fourth-quarter reports:

* Canadian Apartment Properties REIT, (CAR.UN-T), Marketwired 

* CT REIT, (CRT.UN-T), Canada Newswire 

* Dream Industrial REIT, (DIR.UN-T), Marketwired 

* H&R REIT, (HR.UN-T), Canada Newswire 

* Killam Apartment REIT, (KMP.UN-T), Marketwired 

* Morguard North American Residential REIT, (MRG.UN-T), Canada Newswire 

* Summit Industrial Income REIT, (SMU.UN-T), Canada Newswire

Real Estate Investment Trusts

How to play the REIT sector right now

Although Dundee Capital Markets expect Q4/15 to be in-line with expectations, the quarter’s data on fundamentals will be critical to 2016-17’s estimates. With our macroeconomic scenario playing out, notably in regards to the longer than anticipated period of low interest rates (and negative interest rates possibly coming to Canada), Q4 results come at a crucial moment of the economic and real estate cycles.

Globe and Mail

Pure Multi selected to 2016 TSX Venture 50

Pure Multi-Family REIT LP (RUF.U-X) announced the TSX Venture Exchange has ranked Pure Multi in the top-10 listed companies in the Diversified Industries category in the 2016 TSX Venture 50.”Pure Multi is honoured to be included in this ranking of the strongest performing companies on the TSX Venture Exchange,” CEO Steve Evans said.

Canada Newswire

Strategic Storage acquires three GTA facilities

Strategic Storage Trust II, Inc. (SST II) – which is sponsored by SmartStop Asset Management, LLC – recently purchased three self storage facilities for approximately $53.1 million. Located in the Greater Toronto Area (GTA), this portfolio totals approximately 2,570 units and approximately 232,200 rentable square feet.

Marketwired – Marketwired

Legal Corner

Brampton seeks dismissal of developer’s lawsuit

The City of Brampton has filed a motion asking the courts to dismiss a $28.5-million lawsuit against the city that alleges there was staff misconduct in the handling of a $500-million downtown development deal. Two long-time councillors who are critical of the deal wonder why it took nearly five years to file a motion for summary judgment to dismiss the lawsuit.

Toronto Star

Retail

Rona tops profit estimates

Home renovations retailer Rona Inc. (RON-T) capped potentially its last year as a Canadian-controlled company by beating expectations as net income grew on higher sales in the fourth quarter. The Quebec-based firm said it earned $16.7 million in the 13 weeks ended Dec. 27, compared to $6.05 million a year earlier.

Financial Post – Ottawa Citizen

Nordstrom to open outlet store in Toronto in 2018

U.S. upscale department-store retailer Nordstrom Inc. (JWN-N) will launch its first discount Rack outlet in Canada at one of the country’s busiest intersections. Blake Nordstrom, co-president of the Seattle-based retailer, said the first Rack will be located at Bloor and Yonge Streets in Toronto – at 1 Bloor St. E. – just steps from the tony Mink Mile.

Globe and Mail

Life Lessons: Stu Hunter, Play it Again Sports

Stu Hunter has experience operating two small businesses: a printing business he owned with his brother-in-law starting in 2006 and Play it Again Sports, a new-and-used sports retail store in Surrey he now owns with a friend. Hunter says he learned about business partnerships from the first business.

Business In Vancouver

Calgary-based chocolatier on the rebound

Bernard Callebaut chocolates have been loved in Calgary and beyond for decades. But after a high-profile bankruptcy that resulted in the Belgian-born founder being barred from using his own name as a trademark, and the destruction of a manufacturing facility in the city’s 2013 flood, it’s proven to be more of a struggle than anyone could have imagined.

Globe and Mail

Restaurants and Eateries

Starbucks opens first ‘express’ store at Union Station

Call it an espresso shot across the bow of the commuter coffee wars. Starbucks Canada (SBUX-Q) launched its first express location in Union Station Wednesday morning, just in time for rush hour crowds in search of that Grande or Venti coffee fix from the world’s largest java chain.

Toronto Star

Seinfeld pop-up bar coming to Toronto

It might have been a show about nothing but Toronto is getting a Seinfeld–themed pop-up bar that promises to be really something.  The bar is expected to open this summer in the city’s west end in the form of the sitcom’s iconic diner. A launch party is set for July 15, according to a Facebook page.

CBC News

BeaverTails bets on skiers and fair-goers

BeaverTails found success when the Montreal-based company finally decided to embrace the iconic dessert’s biggest asset — marketing the decadent hand-stretched sweet pastry made to resemble a beaver’s tail as a treat for special occasions, rather than positioning it as a food for people to eat every day. 

Financial Post

New Development

Winnipeg turns down Charleswood development

A spokesman for a non-profit, life-lease development in Charleswood accused city officials Tuesday of arbitrarily changing its approval criteria.  Brian Wall, with GW Architecture, said city planners supported the project two years ago, adding the design had been changed and improved to meet community and the city’s concerns yet it’s no longer considered acceptable.

Winnipeg Free Press

Nanaimo starts new search for hotel builder

Despite repeated setbacks for more than a decade, Nanaimo, B.C., is hoping someone will build a hotel to complement the Vancouver Island Conference Centre. In its latest push, the city has hired CBRE Ltd. Canada to gather information in the hopes of publishing a request for proposals later this year for the site.

Victoria Times Colonist

Currie Barracks’ redevelopment rebranded

Currie Barracks, a community being redeveloped from a former Canadian Forces Base Calgary site is moving ahead on a plan for condo skyscrapers, townhomes and major retail space, under a new name, Currie. The rebrand was announced by developer Canada Lands Company last week.

Calgary Herald

Sports Venues

Northlands revamp ‘boon’ for Edmonton hockey

The plan to transform Rexall Place into a dual-floor hockey tournament centre could ease the pressure on city rinks, creating opportunities on the ice for Edmonton’s minor and amateur hockey teams. Last week, Coun. Michael Oshry revealed councillors have seen concepts for the new Northlands Ice Coliseum, which splits the interior into two levels.

Edmonton Journal – Edmonton Journal – Edmonton Journal

Renovation and Restoration

Awards honour Windsor’s best heritage renos

The old home of the Windsor Star is still making news. The beaux-arts limestone structure and the older former apartment building connected to it, are among four properties chosen Monday night to receive the city’s 2016 Built Heritage Awards.

Windsor Star – windsoriteDOTca

Infrastructure

Brookfield to partner on higher bid for Asciano: Sources

Canada’s Brookfield Asset Management (BAM.A-T) is planning a fresh $8.8 billion Cdn bid for Australian port and rail firm Asciano with Qatar’s sovereign fund, two sources told Reuters, widening the global battle for the haulage heavyweight. The move underscore the immense appetite for Australian infrastructure, especially mining-exposed companies.

Reuters

TO’s transit proposals focused on subway, light-rail

The long-promised light-rail line on Toronto’s waterfront has re-emerged to stake its place at the centre of the city’s transit plan, along with another new LRT, subways and better bus service. It’s all part of an optimistic new package of proposals that would see a full-fledged transit network finally emerge across the city – but will require substantial funding.

Globe and Mail – Toronto Star

Independent panel for proposed Alberta hydro project

The federal government has ordered a review of a proposed hydroelectric project in northwestern Alberta. The AHP Development Corp. says it wants to build a power plant and dam on the Peace River upstream from the community of Dunvegan. Environment Canada says it is referring the company’s environmental assessment of the Amisk proposal to an independent review panel.

Calgary Herald

International

U.S. approves first factory in Cuba since 1959

The Obama administration has approved the first U.S. factory in Cuba in more than half a century, allowing Alabama partners Horace Clemmons and Saul Berenthal to build a plant assembling as many as 1,000 small tractors a year for sale to private farmers in Cuba.

Globe and Mail

Sustainability

Tenant engagement bolsters sustainability: Federal Realty

Sustainability manager Chris Brown explained Federal Realty Investment Trust (FRT-N) is a unique retail REIT because about a third of the portfolio is comprised of mixed-use properties. The variety of tenants creates a range of different sustainability needs and enables Federal Realty to better understand its real estate assets.

REIT.com

Braid: No Calgary flood project yet

This spring will mark the third flood season since the rivers ravaged Calgary in June 2013.  The memory is already making people nervous. Calgary-Elbow MLA Greg Clark got a note Monday from a fellow who’s stocking up on sandbags.

Calgary Herald

Other