Connect with us

Real eState

Boeing looks to offload 30% of its real estate – The Real Deal

Published

 on


Boeing headquarters in Chicago with Boeing CFO Greg Smith (Photos via Wikipedia Commons and Boeing)

Boeing headquarters in Chicago with Boeing CFO Greg Smith (Photos via Wikipedia Commons and Boeing)

Boeing may reduce its real estate footprint by as much as 30 percent because of the pandemic.

The Chicago-based company announced on Wednesday it is exploring its options for selling some of the real estate it owns around the country, the Puget Sound Business Journal reported.

“We’re reviewing every piece of real estate,” CFO Greg Smith said. “Every building, every lease, every warehouse, every site to see how we can be more efficient.”

Smith said the review aims to take advantage of “new and flexible remote work possibilities” that arose from the coronavirus pandemic, according to the Business Journal.

Job cuts will also allow the company to reduce space. The company plans to cut 30,000 jobs by the end of the year and announced 7,000 layoffs on Wednesday.

Boeing Commercial Airplanes’ 855,000-square-foot headquarters in Renton, Washington is among the properties that could end up on the market. It’s estimated to be worth more than $92 million.

The company listed some Southern California properties earlier this year.

The company posted a $754 million loss excluding special items in the third quarter as revenue fell 29 percent, according to CNN.

“The global pandemic continued to add pressure to our business this quarter, and we’re aligning to this new reality,” CEO Dave Calhoun said on a thirdquarter earnings call. [Puget Sound Business Journal] — Dennis Lynch 

Let’s block ads! (Why?)



Source link

Continue Reading

Real eState

Commercial real estate: Trends to watch in 2021 – The Globe and Mail

Published

 on


Downtown Calgary skyline. The office vacancy rate in downtown Calgary in third-quarter 2020 was 28.7 per cent, according to CBRE statistics.

Illustration/iStockPhoto / Getty Images

The story of Canada’s commercial real estate in 2021 will depend on how many COVID-19 plot twists have caused permanent changes in leasing and transaction patterns.

Industrial and retail real estate trends that had already emerged in 2019 were greatly accelerated by the pandemic, say industry professionals. Warehousing and distribution centre construction and lease rates, already on the upswing, took off as e-commerce increased. Bricks-and-mortar retail has been hit harder as some retail chains founder and mall tenants struggle to make their rents during lockdowns.

The office sector has been thrown into disarray and forecasts are divided on where office vacancies and trends are heading.

Story continues below advertisement

“One camp is predicting work-from-home could become the new norm and the other is saying we will return to how things were previously,” says Matt Picken, Jones Lang LaSalle Inc.’s (JLL) national lead of capital markets.

“I think there will be a compromise. Clearly there’s some cost saving involved in work-from-home but to the detriment of collaboration and office culture.”

JLL’s third-quarter 2020 office report showed a total office vacancy rate in Canada of 10.8 per cent and the “largest negative quarterly net absorption in over a decade, totaling nearly 2.7 million square feet of occupancy losses.”

But Mr. Picken remains confident in an office rebound once a vaccine is in place. “It’s too early to write off the office market. Our vacancies were so low for such a long time, this is not necessarily such a bad thing.”

Scott Addison, president of brokerage services Canada for Colliers, says available space, including lease and sublease vacancies, in major downtown markets could increase to more than 10 per cent in the next 18 months.

“The amount of sublease space coming to market is dramatic – 350 per cent more sublease space came to market in the last quarter than last year at this time.”

Mr. Addison says companies may have taken more space than they needed, based on big growth projections, and firms with multiple locations may be consolidating as leases come up.

Story continues below advertisement

According to Ray Wong, vice-president of data operations at Data Solutions for Altus Group, there are discussions between office landlords and tenants about downsizing, renegotiating rents and even increasing space requirements to accommodate physical distancing.

“On top of that, we’re seeing increased inquiries into the suburban markets, closer to where people live.”

Mr. Wong adds that some companies are looking into relocating further out of the big cities to markets such as Kelowna, B.C., Kitchener-Waterloo, Ont., and Halifax to get more bang from the buck.

That drive to lower density locations might help Calgary, says Greg Kwong, regional managing director in Calgary for CBRE.

The office vacancy rate in downtown Calgary in third-quarter 2020 was 28.7 per cent, according to CBRE statistics. Mr. Kwong says the continuing crisis in the energy sector plays as big a role in Alberta as does COVID-19.

Vancouver is not experiencing the office vacancy woes felt elsewhere to the same extent, according to CBRE’s Vancouver managing director Jason Kiselbach.

Story continues below advertisement

“We entered 2020 with one of the lowest vacancies and we still have that,” he said, adding that a diversity of business, including film production and health sciences, as well as constrained office supply has contributed to a favourable climate.

Industrial properties, particularly warehouse and distribution, are bright spots for all markets in Canada. A trend to low vacancies and increasing lease rates was boosted significantly in 2020 by COVID-19′s influence on the rise of online shopping. Experts say the trend will continue through 2021 with still more construction and higher rates.

Mr. Wong says he would tell investors that their most promising bet for 2021 would be industrial land with room for possible expansion on a major arterial road. There is little available space in the market, he says. Third-quarter 2020 figures show national availability at 3.1 per cent, with Toronto figures at 1.9 per cent and Vancouver at 2.3.

In Vancouver, where available land is at a premium, industrial is beginning to go multistorey. Oxford Properties Group’s Riverbend Business Park is the first multistorey facility of its type in the Vancouver area.

Frank Magliocco, real estate leader with PwC Canada, says there is also a trend to some “reshoring” of manufacture because COVID-19 revealed the disruptions that can happen to global supply chains because of a pandemic.

“That’s also driving wind under the sales of industrial.”

Story continues below advertisement

Malls and power centres are another uncertain sector of industry. Some observers are seeing excess retail land being converted to residential and industrial uses.

There has been some increase in vacancy in downtown Toronto in multiresidential.

The Associated Press

“There is potential to convert some non-performing shopping centres to last-mile fulfillment centres,” JLL’s Mr. Picken says. “The numbers are going to start to break in favour of this type of development because there’s such a shortage of warehouse space in key urban areas.”

Mr. Addison predicts that big regional malls and local corner stores will return post-COVID-19, but consumers may still choose e-commerce over a trip to a power centre.

“Because of the pandemic, those who weren’t using e-commerce are finding ‘this is easy, it’s pretty good.’” Mr. Addison says. “In February, it’s snowing, you’re in Calgary. Are you going to drive out to a power centre or are you just going to order it off Amazon and have it delivered that afternoon?”

Investors show increasing interest in multifamily residential

Emerging Trends in Real Estate 2021, an annual survey of real estate professionals conducted by PwC and the Urban Land Institute, showed 61.4 per cent of survey respondents favoured buying moderate income apartments; 48 per cent rated single family rentals as a buy and 42 per cent recommended lower income rentals, the top three commercial real estate categories in the survey.

Story continues below advertisement

According to Ray Wong, vice-president of data operations at Data Solutions for Altus Group, there has been some increase in vacancy in downtown Toronto in multiresidential, but that is because of a conversion of Airbnb units to longer-term rentals.

Canada has also missed a cycle of immigration because of COVID-19, he adds.

“Hopefully, immigration will start to come back, and I think a lot of those vacancies will start to dry up again,” Mr. Wong says.

Let’s block ads! (Why?)



Source link

Continue Reading

Real eState

Booming real estate market reaches rural N.S. – CBC.ca

Published

 on


Realtors in rural Nova Scotia are adjusting quickly to a new way of selling houses as buyers from places like Ontario and B.C. snap up properties without seeing them in person.

Christopher Snarby, the co-owner of Exit Realty Inter Lake, sells properties from Chester to Queens County and estimates he’s sold 12-15 of them sight unseen since May.

“People have been desperate and they can’t get here to see it, and they know things are moving quickly so they just kind of have to make a choice,” Snarby told CBC’s Information Morning on Monday.

“And not everybody’s comfortable with it, but certainly I’ve had a number that have been.”

He admits selling a property virtually can be a challenge. 

“It’s hard to describe a smell or feel of a house, but it really does become our responsibility to try to convey as much information as we can,” Snarby said. 

October was a record-breaking month for property sales across the province with inventory low and prices continuing to soar, according to the Nova Scotia Association of Realtors.

Bobbi Maxwell said half of her buyers right now are from outside the province and won’t see their houses in person until they arrive. Most are middle-aged people who can work from home and are looking for a place to retire at some point.

“We’re starting to see more people … migrate this way because they want the solitude, the peace, the quiet, the safety and the beauty of the beaches,” said Maxwell, a realtor with Viewpoint Realty Services who sells properties around Barrington and Clyde River in Shelburne County.

“We’re not as hot as the metro [market], but it’s definitely been one crazy market for us as well.” 

Record October across N.S.

The Nova Scotia Association of Realtors compiled data for the month of October that shows 1,427 units were sold across the province, up more than 30 per cent from October 2019.

The average sale price was a record $304,590, rising just over 21 per cent from the previous October. 

In Yarmouth, there were 24 residential sales in October, up 41 per cent from last year and in the Annapolis Valley, 203 properties were sold, up 30 per cent since last October. The average sale price also went up in both areas last month. 

Christopher Snarby, co-owner Exit Realty Interlake, said people are moving to communities on the South Shore for the relative affordability, friendliness and proximity to the ocean. (Robert Short/CBC)

On the South Shore where Snarby works, sales in October were up about 30 per cent from last year and the average residential price was just over $291,000, an increase of 36 per cent over last October. 

The booming market is a major win for sellers but can be frustrating for buyers

“We’re not usually accustomed to that many bidding wars in our area, but now … most properties have gone into at least two or three offers and the time frames are a lot quicker as well,” Snarby said.

In the past, houses would sit on the market for six months to a year and now they’re gone in weeks or days, he added.

Rural internet still a challenge

Even though people are eager to move to Nova Scotia for its friendliness and relative affordability, Snarby and Maxwell said they are routinely asked about internet service.

“It’s really funny because people are more concerned about the internet than they are health-care services,” Maxwell said.

She said newcomers are good news for rural areas like Shelburne County that have struggled with out-migration. 

Bobbi Maxwell hopes the tide is turning for communities like Shelburne, which have seen an out-migration of residents in recent years. (Robert Short/CBC)

But she said there could be challenges, too. 

Many new buyers say they eventually want to build their own homes but finding skilled labour in the area isn’t always easy, she said. 

“I think we’re going to have a lot of growing pains because with the demand, we’re very short on tradesmen like plumbers and electricians and carpenters,” Maxwell said.

“I really am hoping that a lot of the people who are moving here from away are bringing in new skills or new motivation to want to … become career oriented or focused and become tradesmen in our area.”

Snarby said some of his clients are selling homes in the $800,000 range in Ontario and buying a property in rural Nova Scotia for around $200,000, leaving a healthy amount for their retirement fund.

 “And at the end of the day, if they’re not comfortable with their house or if it’s not quite the right one, they can put it back on the market and there’s a good chance it’ll sell,” Snarby said. 

MORE TOP STORIES

Let’s block ads! (Why?)



Source link

Continue Reading

Real eState

Pandemic-induced demand for more space pushing up cottage prices, real estate firm says – CBC.ca

Published

 on


Home prices are increasing in Canada’s cottage country as more buyers look to move there full-time, according to a report released Monday by Royal LePage.

Prices of single-family recreational homes rose 11.5 per cent to an aggregate of $453,046 in the first nine months of the year, the real estate brokerage said.

The data from Royal LePage comes amid an overall uptick in home prices this year, after COVID-19 lockdowns stymied the spring buying season.

A rush of demand and a limited supply as the economy reopened this summer and fall meant that home prices were up 15.2 per cent last month in Canada compared to a year ago, according to the Canadian Real Estate Association.

Royal LePage chief executive Phil Soper says the number of cottages, cabins, chalets and farmhouses on the market have also dwindled amid the increased demand, at least through September.

“Inventory levels are the lowest I’ve seen in 15 years,” said Heather FitzGerald, a Royal LePage agent in Moncton, NB, in the report.

While local buyers have moved away from cities and closer to nature, FitzGerald also noted an increase in buyers from Ontario and Quebec.

Corey Huskilson, another Royal LePage agent quoted in the report and based in Halifax, said buyers from outside of the Maritimes, “who expect to be working remotely for the foreseeable future, are flocking to the area.”

Real estate agents in 54 per cent of regions told the brokerage that there was a significant increase in buyers looking to work remotely at a cottage as a primary residence.

Eric Leger, a Laurentians-based agent, said in the report that Quebec’s lockdown periods “sparked an urgent desire for many city dwellers, in need of more living space, to relocate to the suburbs and cottage country.”

Retirees a factor, too

Agents in other provinces noted similar trends, with one agent noting that Alberta-based buyers are competing with people across the country for properties in Canmore.

“Highway developments have reduced the drive from Saskatoon to 1.5 hours, which makes working remotely more possible for those who still have to go into the office a few days a week,” said broker Lou Doderai in the report.

The report says retirees have also bid up cottage prices, with agents in 68 per cent of regions saying more retirees are buying cottages this year compared to last year.

“Retiring baby boomers have been putting upward pressure on prices and reducing inventory for the last few years. Retirees are now finding themselves competing against remote workers,” said Bob Clarke, an agent in Ontario’s Muskoka region, in the report.

“The most common question used to be ‘is the property West-facing?’ Now my clients’ biggest concern is internet quality.”

Let’s block ads! (Why?)



Source link

Continue Reading

Trending