Supply chain issues, growing e-commerce and a global pandemic are among the factors that have altered real estate dynamics in North America, says Steven Marino, senior vice-president, portfolio management at GWL Realty Advisors.
Where office and retail were once the dominant real estate sectors, he said multi-family assets, industrial properties and land now command the lion’s share of investor attention.
“Those three asset classes have really stepped into the void that’s been created by a shortage of office investments,” he said. “And thankfully the positive fundamentals that support those asset classes have really helped to give investors a lot of confidence moving forward.”
Speaking on the Soundbites podcast, Marino said 2021 saw a wave of new capital looking for exposure to alternative investment asset classes, which includes real estate.
“That certainly created substantive tailwinds, in terms of the scale of capital that has moved into real estate,” he said.
Industrial property has benefited from a trend of re-shoring manufacturing and distribution, as companies learned to place higher priority on having goods near at hand. As a consequence, the industrial sector has become the hottest real estate asset class.
“We’ve seen 20% to 30% annual increases in rents over the last two years,” Marino pointed out. “Vacancy rates in Toronto, Montreal and Vancouver all hover just at around 1% or less. Those are record vacancy levels, and that’s translating into record pricing power for landlords.”
As for land itself, he acknowledges that has become one of the greatest challenges for growing municipalities.
“We’re seeing municipalities across the country really having to revisit their city-planning timelines to understand how much land they want to make available to help supply the growth that is being demanded by a large logistics organization,” he said.
Meanwhile, the retail and office sectors continue to evolve as consumers demand greater convenience and new use-cases.
“Enclosed retail centres continue to see challenges,” Marino said. “We’re seeing the ‘de-malling’ and in some cases redevelopment of retail centres really to help to drive more foot traffic into those centres.”
Some developers are experimenting with mixed-use formats, adding multi-family densities into and near retail facilities.
“You’re seeing current projects like Sherway [Gardens in Toronto] or Yorkdale [Mall in Toronto] having substantial density being added to the immediate proximity of those footprints, just to really take advantage of the strong attributes of those locations,” he said.
The strategy, which often carries a big price tag, is a deliberate attempt to create experiential opportunities that attract consumers.
“It’s a defensive move but I think on some levels it’s an offensive move as well,” he said.
As for offices, Marino believes a radical transformation will play out over time.
“It’ll be really dependent on the quality of the office assets we’re talking about and the nature of the tenants’ business and their function. Certainly, the best-in-class assets are continuing to do well,” he said. “Weaker assets are suffering, and landlords are having to reinvest capital into their assets to improve their positioning and to augment their offering.”
As always, he believes location plays a huge role in the success of any real estate venture — particularly when it ensures access to a wide range of amenities. In Toronto, for example, young professionals still want to live and work in the city, and a stable labour pool is made possible by transportation hubs that improve accessibility and convenience.
“If you’re an employer of choice who wants to be able to access those labour pools and create dynamic work environments for your staff, you really need to lean into where those amenities and where those life experiences are for your employees,” he said. “You have to be part of the fabric of local communities.”
Even suburbia can replicate the urban experience by creating central business districts with a variety of services that are accessible by a range of transportation types. Mississauga, Ont. has created a vibrant urban core near its city hall, just as the city of Vaughan — the fastest-growing municipality in Canada between 1996 and 2006 — is trying to do at Highway 7 and Jane.
“Those cores are likely to be far more successful or resilient than the standalone suburban building that really doesn’t have the same amenities set to offer to its tenants,” he said.
Marino described monetary policy as the single biggest risk to the real estate market.
“When I think about the economy, I think about the risk potentially associated with effectively managing any monetary policy changes and certainly that’s a conversation of the day, just given the prospects of potential rate risers in the course of 2022,” he said. “So, we’re looking forward to an orderly and measured approach to managing those interest rate raises and making sure that the economy can manage that.”
Ultimately, he believes the nature of real estate and its return profile contribute to its widespread popularity as a key component of a multi-asset class portfolio, helping to generate and preserve wealth for investors.
“When I couple that with the value that’s determined by key locations, adaptability and resilience, it really provides great value to its stakeholders.”
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This article is part of the Soundbites program, sponsored by Canada Life. The article was written without sponsor input.
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.
