Real eState

Joanne Paulson: Saskatoon’s industrial real estate in hot demand, short supply

Published

1 year ago

June 14, 2023

The now-vacant site of a one-time Imperial 400 motel on Idylwyld Drive in Saskatoon is considered a valuable piece of real estate, possibly for a future light industrial use. It hasn’t sold in the past, simply because of the old building sitting on the property. Photo by Matt Smith /Saskatoon StarPhoenix

For the news consumer, industrial real estate may not be the sexiest topic.

Most of us think about where we’re going to live, shop and eat out, not what a company is manufacturing across town. But industrial space, and how it’s faring, is incredibly important. As Brent Haas put it simply and bluntly, “Industrial drives the city, the community.”

Manufacturing drives economies and jobs — so yes, it’s important.

I called Haas, a broker with RE/MAX Bridge City, for some perspective on local industrial real estate after RE/MAX Canada put out its quarterly report recently.

I was aware that it was tough to purchase industrial buildings in Saskatoon, but the report surprised me a little just the same.

“Industrial is extremely tight, with any space coming to market immediately scooped up,” the report said.

Apparently, REITS (real estate investment trusts) and institutional investors are vying against companies (“end users”) who want to own rather than lease.

But the lack of supply is strangling activity and forcing companies to buy old buildings, which they either rehabilitate or tear down preparatory to rebuilding.

(In a brief digression related to the above, I liked this line in the report: “While Toronto is well-known for its crane count, Saskatoon is now home to the backhoe.” Ha.)

How tight is this market?

“There’s a lineup of buyers,” Haas said. “If I had 10 industrial buildings right now, tenants in place, I could sell 10.

“You list it and you will sell it instantly, if it’s priced well.”

Yikes. How did we get here?

Haas says the situation dates to 2016-17, when a lot of industrial land was developed in the far north end: think 71st Street and beyond.

Going into 2019, there was “a lot of opportunity to get into a (leased) space from $7 to $9 a square foot, into brand new space with tenant incentives,” he said.

Then came the pandemic.

“After COVID, we were going into this boom all of a sudden and now we’ve seen rates jump up … to $12, $15, $16, $18 per square foot for that kind of building.” In other words, doubling, in many cases.

Those rates don’t apply to some of the space in older industrial areas of the city, he noted. Getting into a new building is easier because improvement costs are high, which has resulted in the 71st Street area filling up quickly.

Not helping is that in at least one case, an industrial property was torn down and replaced by new office space, which is in considerably less demand. That seems odd to me, but there it is.

However, the situation is tight enough that things may start to shift on the infill side. For example, Haas points to the old Imperial 400 motel site on Idylwyld Drive, in his opinion the most valuable land on that strip. It hasn’t sold in the past, simply because of the old building sitting on the property.

Now, it won’t take long for it to sell, “even with the motel having to be removed,” he said. “New land is far more expensive than it is to demise that structure.”

Despite all this demand, though, little industrial space is being built. So, I wondered, if matters are this dire, why are we not seeing builders scrambling to meet demand?

“They will say it’s too volatile,” Haas said. “Does Saskatchewan have the ability to draw the industrial people in to fill up these spaces? Developers look at this as a return concern. The builder looking at this is saying, ‘If we don’t have the user for this space, we’re not going to build it because we’re not going to build on spec.’ ”

And that is partly based on bad memories, he said.

“They were stuck holding hundreds of thousands of square feet in 2016.”

Saskatoon is also competing with Regina, which has far better infrastructure, including roads, for the industrial sector. Also, the mentality here is less aggressive than, for example, in Alberta, in Haas’s view.

Yet despite these issues, he thinks the industrial market will continue to be fairly hot for some time.

“Industrial is a very slow-moving vehicle,” he said; the market takes quite a while to adjust.

“But the smaller industrial warehouses for your electrician or plumber will always be in demand. These industrial complexes for your countertop people and supporters of residential building, that’s always there. That grows, that shifts.

“So I think industrial is going to continue to grow. It’s just going to grow (on) a slower scale.”

Joanne Paulson is a Saskatoon author and freelance journalist who has been covering real estate, off and on, for more than 25 years. Do you have a fascinating real estate story to share? Get in touch at jcpwriter@sasktel.net.

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Real eState

Two Quebec real estate brokers suspended for using fake bids to drive up prices

Published

4 days ago

September 11, 2024

Anne Joseph

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.

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Montreal home sales, prices rise in August: real estate board

Published

1 week ago

September 6, 2024

Anne Joseph

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.

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Canada’s Best Cities for Renters in 2024: A Comprehensive Analysis

Published

2 months ago

July 24, 2024

Harry Miller

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.