Real eState

Toronto real estate investor to pump $85M into London industrial space – London Free Press (Blogs)

Published

3 years ago

January 24, 2022

A Toronto real estate investor is spending big bucks in London.

The Maple Leaf Foods chicken processing plant being built in London accounts for two-thirds of the industrial space under construction in the city. Smaller industries face a vacancy rate of only 0.8 per cent, a situation that has attracted investors to the market. (Mike Hensen/The London Free Press)

A Toronto real estate investor is spending big bucks in London.

Nexus Real Estate Investment Trust will invest more than $85 million in the city this year and next, buying industrial space after investing more than $56 million in 2021, as London has become a hot commercial real estate market, observers said.

“London is a fantastic market. There has been a migration from Toronto to secondary markets due to rents and that, combined with low vacancies, bodes well for the future,” said Kelly Hanczyk, chief executive of Nexus REIT.

“There is a significant demand for industrial space across Canada. Toronto is very pricey and secondary markets such as Cambridge, London and St. Thomas and Sarnia are all seeing industrial spaces snapped up rapidly. I don’t see that changing anytime soon.”

Nexus plans to spend:

$35.7 million for three properties in London this year, totaling 340,000 sq. ft.
$50.6 million in London in 2023 for a 325,000 sq. ft. industrial property with a 175,000 sq. ft. addition, now being built.

Hanczyk wouldn’t say where the buildings are because the purchase isn’t finalized.

In 2021, Nexus spent:

$44.1 million for a 391,000 sq. ft. building at Wilton Grove and Pond Mills roads.
$12.5 million for a 100,000 sq. ft. building at 1950 Oxford St. E.

“There is a lot going on and London and area has changed the strategy for these industrial guys,” said Brent Rudell, broker and vice-president with Cushman Wakefield, the London realty firm.

He agrees the Toronto area market is “out of control,” pushing investors to smaller, but stable, markets with lower costs and rents.

“In our market now, there is more traffic, more businesses and growth in the industrial and commercial market is really robust,” Rudell said.

The London market has some of Canada’s lowest industrial vacancy rates.

“There is no availability,” Rudell said. “It shows the London market is vibrant, it is a place for any business.”

REITs, or real estate investment trusts, typically amass a portfolio of a particular real estate sector, such as office, apartment, or commercial and industrial. Investors who buy shares in the REIT receive a monthly dividend. Nexus focuses on industrial portfolios.

REITs offer investors a chance to buy a portion of large holdings, such as a factory or a mall, Hanczyk said. “It is better to invest in a REIT versus going out and buying a building.”

In one sign of how hot London’s industrial sector is, a report this month from commercial realty firm CBRE pegged the vacancy rate at just 0.8 per cent, with only 328,000 sq. ft. of small- to mid-sized space available.

While there is nearly 900,000 square feet under construction, more than two-thirds of that is for one project: the 640,000 sq. ft. Maple Leaf Foods chicken processing plant.

To get more industrial land on the market, the city must revisit the development fees it charges builders for construction and speed development approvals, for zoning and site plans, for example, Rudell said.

“London needs more industrial space, there is no end in sight,” to the demand, he added.

“Put an empty industrial space on the market now and you’ll have 50 showings and 20 offers. It’s great for sellers, but a lot of people are not getting the space they want.”

London is not alone. Nationally, the industrial vacancy rate dropped below two per cent to 1.8 per cent and rents rose sharply in 2021, up nearly 11 per cent from 2020, the report said.

ndebono@postmedia.com

Twitter.com/NormatLFPress

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Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

Published

16 hours ago

November 6, 2024

Anne Joseph

TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

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Homelessness: Tiny home village to open next week in Halifax suburb

Published

2 weeks ago

October 24, 2024

Anne Joseph

HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

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Here are some facts about British Columbia’s housing market

Published

3 weeks ago

October 17, 2024

Anne Joseph

Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

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