Winnipeg’s 195 Haggart Building A is a warehouse distribution facility built by QuadReal in 2021.QUADREAL
In Waterloo Region, in 2008, it cost $80,000 an acre to buy a vacant 28.5-acre site zoned for future industrial development. Demand for commercial land then soared, and a decade later, similar properties were selling for between $400,000 and $500,000 an acre.
But what seems like a remarkable appreciation pales in comparison to what’s happened to commercial land prices in the past year, real estate specialists say.
The Cambridge site on Maple Grove Road, for example, was just acquired by Dream Industrial REIT for $912,000 an acre. The plot received multiple bids as soon as it hit the market, even though the plot is irregularly shaped and wraps around other non-owned properties, making development a bigger challenge than a rectangular site.
The Winnipeg market had been steady for the last 20 years, but what we have seen in the last 18 months has been insatiable demand for land and commercial space
— Paul Kornelsen, vice-president of CBRE in Winnipeg
“Industrial, commercial and investment (ICI) land sales are on fire across Southwestern Ontario. We actually can’t find enough of it for those who want to buy it,” says Joe Benninger, vice-president with commercial real estate services firm CBRE’s Southern Ontario investment team. “The volume of land deals has been huge, and the momentum is expanding to cities that didn’t see much interest in the past.”
The rush is widespread, involving tens of thousands of acres of land in regions outside the Greater Toronto Area, including the Golden Horseshoe and all the way to Windsor, he adds. “Two years ago, we were talking between $300,000 to $450,000 per acre across Southwestern Ontario. Now it’s $800,000 to $1.5-million per acre.
“Take Hamilton: It used to be hard to sell ICI land there. Now there’s almost nothing left to buy, and prices are higher than ever,” Mr. Benninger adds. The 3,679 acres worth $498-million sold in Hamilton last year was an increase of 51 per cent from 2020, which was also a strong year for commercial land sales.
And the phenomenon is Canada-wide. Demand for distribution, warehousing and manufacturing sites is stripping supply and setting records, according to commercial real estate services firm JLL’s 2022 Canadian Real Estate Outlook.
Commercial space under construction across the country increased by 7.7 per cent quarter-over-quarter at the end of 2021 to 39.6 million square feet, well above the average in 2015-19. Both Montreal and Vancouver witnessed significant ground breakings on the quarter with minimal completions and were the primary drivers of the increase. The report concludes that “2022 is expected to see even greater deliveries as developers continue to race to satisfy demand.”
Across the country, vacancy rates are at historic lows and occupancy cost registered record highs. All local markets saw rental rates increase, with Montreal, Ottawa, Toronto and Vancouver all registering double-digit annual increases. Vacancy rates also declined in all markets, except Montreal, with Toronto and Vancouver sitting below 1 per cent vacancy.
Even Manitoba has experienced an unprecedented land rush. “The Winnipeg market had been steady for the last 20 years, but what we have seen in the last 18 months has been insatiable demand for land and commercial space,” says Paul Kornelsen, vice-president of CBRE in Winnipeg.
“Transactions are increasing; the number is triple what it was in 2019 and that doesn’t include owner occupiers who have small sites and build their own facilities,” he says. “We’re tracking the big institutional developers who are building on spec and finding tenants eager to lease.”
Prices per square foot in Winnipeg have gone from an average of $7 a square foot to $9 “and we’re projecting average lease rental rates to be at $10 in 2022,” Mr. Kornelsen says. New leases in new buildings are garnering up to $14.
Last year, there was a record-setting 1.2 million square feet of industrial property absorption in the city. Amazon opened two warehouses with a combined area of more than 200,000 square feet. These are much smaller than those in the Greater Toronto Area or Vancouver, but Calgary-based Hopewell Development Corp. alone is slated to build 300,000 square feet of new inventory in Manitoba this year. That number by itself would be a record for on-spec new development in a single year, he adds.
Industrial, commercial and investment (ICI) land sales are on fire across Southwestern Ontario, including this site in Kitchener-Waterloo that recently sold for over $26 million, according to the CBRE.CBRE
“We’re also seeing new entrants into the market – institutional developers who are in the city for the first time because it’s hard to buy land in Toronto, Montreal or Vancouver. They’re looking at Manitoba as an affordable alternative,” Mr. Kornelsen explains. “We’re also looking at a tenant whose lease has expired in Kelowna, and they cannot get space and [are] looking at Edmonton and Winnipeg as an alternative.”
It’s simply a matter of supply and demand, says Marshall Toner, executive vice-president and national lead industrial for JLL Canada. “You can’t just flip a switch. Land takes time to be zoned and serviced to be ready to develop.”
Markets that traditionally never had a high demand are now on the radar because there’s no other place for developers to go. Companies in Vancouver are looking in Alberta because there is not only land available but it’s at a significantly lower price and that can be sufficient to make them decide to change locales, Mr. Toner says.
“There’s such massive demand now that buyers don’t want to wait,” he adds. “If you have a piece of land that’s ready to go, there will be multiple bidders and the price is just going to continue to rise this year.”
The land rush phenomenon
In Cambridge, Broccolini purchased an aggregate of 105 acres at Old Mill Road and Allendale Road for industrial development.
In Waterloo region, Fieldgate Commercial bought 48.2 acres from Smart Centres for commercial development.
In Hamilton, Broccolini purchased of a 178-acre industrial site on Dickenson Road West; Broccolini also bought a 90-acre industrial site on Glancaster Road in Hamilton.
Near Hamilton airport, Fengate Capital Management bought a 75-acre industrial site on Homestead Drive. Hopewell Development also bought a 38-acre industrial site on Airport Road.
In Winnipeg, a national developer bought 17 acres of land adjacent to InksPort Business Park for approximately $400,000 an acre. Three parcels in Winnipeg’s Brookside Business Park also changed hands for prices above $375,000 an acre.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
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