White elephants weigh on Vancouver office market

White elephants weigh on Vancouver office market

Despite being owned by experienced developers and built to state-of-the-art environmental standards and close to transit, several new Metro Vancouver office towers remain nearly or completely vacant. The highest-profile example is the 32-storey Exchange tower, scheduled to be completed next year after a $240 million speculative play by Credit Suisse/SwissReal Group.

Business In Vancouver

SmartREIT settles with Target

Smart Real Estate Investment Trust (SRU.UN-T) announced that along with all of Target Canada’s former landlords whose leases were disclaimed as part of Target’s wind-down under the Companies’ Creditors Arrangement Act, it has entered into a conditional settlement agreement with Target and with its Target Corporation (TGT-N), relating to its two Target leases. 

Marketwired

Greater Vancouver CRE deals broke records in 2015

Greater Vancouver commercial real estate investment transactions and dollar volumes hit new highs last year, and there’s little evidence of a slowdown in 2016. “Should all things remain the same, I see continued growth in terms of deal counts and dollar volume invested into the local real estate market,” said Altus Data Solutions Canada research director Paul Richter.

Property Biz Canada

Ground broken on Eglinton Crosstown

Ontario Premier Kathleen Wynne and Toronto Mayor John Tory celebrated the breaking of ground at Keelesdale Station Thursday. Keelesdale will be the first of 25 stations to be built on the Eglinton Crosstown light rail transit line. Slated for completion in 2021, the 19-kilometre line will cost $5.3 billion to build and be operated by Metrolinx.

CBC News – Toronto Star

Winnipeg’s MTS Centre getting makeover

True North is about to make obstructed-view seats at the MTS Centre nothing but a memory. As much as safety and building codes will allow, that is. True North plans to spend about $8 million before the start of the next NHL season as part of its TN2020 project, which will see nearly $30 million in enhancements throughout the building by 2020.

Winnipeg Free Press

Fraud found in Winnipeg project: Court documents

RCMP found something they weren’t looking for when they raided Caspian Construction offices in December 2014 — documents they called evidence of inflated invoices, fraudulent billing and the payment of a secret commission in the building of the Canada Post mail processing plant near the Winnipeg James Armstrong Richardson International Airport.

CBC News – Winnipeg Free Press

Rexall’s takover could boost pharmacies, health care

Last week’s agreement by global health care distribution giant McKesson to acquire the 470-store Rexall pharmacy chain has the potential to instigate a healthy “space race” among big chains. This deal could accelerate lifesaving and profitable expansions to the scope and quality of care that pharmacies deliver to Canadian communities. And this race could also be beneficial for independent pharmacies.

Globe and Mail

Couche-Tard waited patiently for Esso deal

Alimentation Couche-Tard Inc. (ATD.A-T) waited for more than three years to acquire the Ontario and Quebec retail assets of Calgary-based oil and gas company Imperial Oil Ltd. (IMO-T) Couche-Tard CEO Brian Hannasch called the purchase of 279 Esso brand gas stations for $1.6-billion a “transformative” deal with an attractive link-up to the Tim Hortons brand.

Financial Post

HBC set to invest in Kaufhof

Hudson’s Bay Co. (HBC-T) plans to invest $1.49 billion Cdn in its German chain Kaufhof over the next five to seven years, CEO Jerry Storch told German business daily Handelsblatt. “It’s a big amount we are prepared to invest because we are convinced that Germany is a great market and that department stores have a future here,” Storch said.

Reuters – Globe and Mail

Luxury retailers courting millennials

The recent arrival of U.S. luxury retailers Saks Fifth Avenue (HBC-T) and Nordstrom (JWN-N) have left many wondering if Canadians are as hungry for high-end goods as originally believed. Retail experts say the answer lies with the mystifying millennial market. “Everybody is grappling with how to get a hold on the millennial consumer,” said Retail Prophet analyst Doug Stephens.

Winnipeg Free Press – Canada Newswire

IKEA’s founder details his frugality

With a net worth of more than $53 billion Cdn, Ingvar Kamprad, founder of the furniture chain Ikea, is among the richest people in the world. He is also, it appears, among its most frugal. The eccentric billionaire revealed in a documentary broadcast this week on Swedish television he buys his clothes at flea markets to save money.

Winnipeg Free Press – Winnipeg Free Press

Delavaco Residential receives TSXV approval

Delavaco Residential Properties Corp. (DVO.U-X) reported the TSX Venture Exchange has formally approved: (i) the appointment of Firm Capital Realty Partners Advisors Inc. and its affiliated and/or associated entities as asset manager under the asset management agreement; (ii) the continuation of its previously announced single family property disposition program; and (iii) the adoption of new investment policies for the company in line with its future anticipated areas of business.

Marketwired

America’s abandoned factories in hot demand

There’s a love affair happening with America’s empty factories and warehouses. Vacant commercial spaces are in high demand as both startups and multinationals look for facilities to house their U.S. operations. Several factors are driving this trend, according to Stuart Lichter, president of Industrial Realty Group, one of the largest owners of U.S. CRE. 

CNN

U.S. CRE’s ticking bomb

Commercial real estate had a banner year in 2015, and the fundamentals of high demand and low vacancies are still driving rents higher. There is, however, a catch. Investors are insisting on high yield, and the bonds backing commercial mortgages are not giving them that, so they are moving on to other products, leaving a big crack in commercial financing.

CNBC

Hilton weighing ‘hostel-like’ brand

Hilton Worldwide Holdings Inc., (HLT-N) the world’s large  hospitality company by number of rooms, may add a new brand that focuses on small, cheap hotels in big cities, CEO Chris Nassetta said. Hilton, owner of the Waldorf-Astoria and Hampton Inn brands, aims to meet increasing demand by young travelers seeking no-frills, affordable lodging.

Bloomberg

Featured Column

Retail Investment GTA Activity (2006-2015)

The total volume in square feet of retail properties sold in the GTA since 2006 has fluctuated from lows of 2.3 million square feet in 2009 and in 2012 to a high of 7.1 million square feet in 2011.

Read more

Urban centres will be boomerful

As with most things in life, the numbers matter. And in this case the numbers are staggering. In the United States, 10,000 Boomers every single day will reach retirement between now and 2030.

Read more

Market Trends and Research

Dallas-Fort Worth No. 3 for investors

This could be a big year for real estate investors in the Americas. And Dallas-Fort Worth ranks as the No. 3 target market for investment. With the region continuing to mature and Dallas-Fort Worth’s economy continuing to diversify, it’s no wonder the metro area is seeing investor interest, said Chris Hipps, managing director of CBRE‘s investor services. 

Dallas Business Journal

Construction growth expected in Montreal, Moncton

The power of government infrastructure spending to boost the economy is illustrated in two recent reports produced by the Conference Board of Canada. Analysis of the five Eastern Canadian provinces shows that the construction sectors of Montreal, Moncton, N.B and Quebec City will all see growth thanks in part to major government infrastructure investments. (PLEASE SEE DETAILED CHART BELOW).

Daily Commercial News

	Canadian Metropolitan Outlook: Winter 2016
	The Conference Board of Canada publishes a quarterly overview of the outlook for the economies of metropolitan centres in Canada.  It provides a national overview and individual city reports, as summarized in this RENX chart. Conference Board of Canada: Metropolitan Outlook Chart: Winter 2016

 

REOC Financial Reports

Latest reports:

* Brookfield Real Estate Services, (BRE-T), Canada Newswire 

* Holloway Lodging Corporation, (HLC-T), Canada Newswire 

* Tricon Capital Group, (TCN-T), Canada Newswire

	REITs & REOCs – Fourth-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 are now arriving. Canadian REITs & REOCs – Fourth-quarter 2015 report

 

REIT Financial Reports

Latest fourth-quarter reports:

* Edgefront REIT, (ED.UN-X), Marketwired 

* Fronsac REIT, (GAZ.UN-X), Marketwired 

* InterRent REIT, (IIP.UN-T), Marketwired 

* Lanesborough REIT, (LRT.UN-T), Canada Newswire  

* Melcor REIT, (MR.UN-T), Marketwired 

* Northview Apartment REIT, (NVU.UN-T), Marketwired 

* NorthWest Healthcare Properties REIT, (NWH.UN-T), Canada Newswire 

* Pure Industrial REIT, (AAR.UN-T), Canada Newswire 

* Pure Multi-Family REIT, (RUF.U-X), Canada Newswire 

* True North Commercial REIT, (TNT.UN-T), Canada Newswire  

Real Estate Investment Trusts

WP Glimcher separates malls into two piles

In reporting results for its first full year as a combined firm, retail REIT WP Glimcher (WPG-N) disclosed it has divided its portfolio of 62 malls into Tier 1 and Tier 2 assets. Going forward, it plans to concentrate future capital expenditures on the larger Tier 1 group assets, while minimizing any financial investment for properties in the Tier 2 group.

CoStar Group

Is Northview Apartment REIT a buy or sell?

Northview Apartment REIT’s (NVU.UN-T) share price more or less correlates with the movement of the WTI oil price. Since mid-2014, the WTI oil price has fallen from over US$100 to under US$40, while Northview has fallen about 34% from roughly $28.50 to $18.80 per unit. Northview Apartment owns total assets of about $3.1 billion including more than 24,000 residential units and 1.1 million square feet of CRE.

Motley Fool

Legal Corner

McDonald’s on trial n U.S.

A pivotal trial against McDonald’s (MCD-N) that began this week is providing a peek into the inner workings of the maker of the Big Mac. The trial centres over whether McDonald’s exerts control over hiring and pay decisions for employees at restaurants run by its U.S. franchises. The National Labor Relations Board contends the company does.

Winnipeg Free Press

Retail

Oilpatch woes take toll on Empire

Tough times in the oilpatch are leading to deep frugality in the grocery aisles, delivering a harsh blow to the owner of Sobeys and Safeway. Stellarton, N.S.-based Empire Co., (EMP.A-T), lost $1.36 billion in the third quarter after writing down the value of its Western Canadian business, primarily its Safeway banner.

Financial Post – CTV News – Globe and Mail (Subscription Required) – Canada Newswire

Whole Foods getting traction with updated app

Whole Foods Market Inc.’s (WFM-Q) digital push appears to be paying off. The retailer launched its first digital couponing program on Jan. 28 with version 7.0 of its online app. Since the company’s formal announcement on Feb. 10, daily downloads surged from approximately 1,000 to 5,000 on Apple’s iOS, according to RBC Capital Markets.

Financial Post

Restaurants and Eateries

Restaurant royalties let you dine on dividends

I’ve dropped a lot of dough at Pizza Pizza over the years. As a shareholder of Pizza Pizza Royalty Corp. (PZA-T), I now receive a monthly dividend of 6.97 cents a share, or 83.64 cents annually. Based on Pizza Pizza’s closing price of $12.94 on Tuesday, it works out to a tasty yield of 6.5 per cent.

Globe and Mail (Subscription Required)

Renovation and Restoration

Bentall to redevelop Vancouver post office

After years of speculation, Vancouver’s old Canada Post property is about to be redeveloped by Bentall Kennedy. A rezoning proposal is expected to be submitted to the city later this year to keep most of the existing building. Bentall wants to convert the former mail processing plant to a mixed-use building with retail, residential and offices.

Vancouver Sun – BCBusiness

Infrastructure

Victoria highway upgraded to four lanes

Motorists approaching or leaving the Victoria area on the Trans-Canada Highway will have four lanes of divided highway after completion of construction announced Thursday. Todd Stone, B.C. Transportation and Infrastructure Minister, announced the project at a ceremony at the end of Goldstream Avenue, within a stone’s throw of Trans-Canada traffic.

Victoria Times Colonist

Other

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