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Real Estate Rockstars 2021 – Trillium Commercial Realty -… – Volume One

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“Pretty much everything we help our clients with, we’ve done personally,” says Knepper, who — like Tanner — is a lifelong Chippewa Valley resident.

During a recent conversation in Trillium’s office, Tanner recalled a phone call from a residential real estate agent wondering why a commercial property was priced the way it was. Tanner began asking questions: What do the leases look like? What about the property taxes? What’s happening nearby that might be impacting the property’s price?

“That’s when a lot of the Realtors who are not specialized in commercial real estate just say, ‘Hold on: I don’t want to deal with finding out who the property manager is, finding out who does the profit and loss statements, the operating statements’ — all those things that investors want to look at,” Tanner said. “That’s what we do, what we breathe every day.”

Because of their expertise in commercial real estate, the Trillium team knows how to explain the financial picture for buyers looking for properties to locate their businesses as well as those looking to invest in real estate as a business. They frequently work with clients making what are known as “1031 exchanges,” in which investors who sell real estate can defer capital gains taxes by reinvesting in other properties. The market for such transactions is hot right now, Tanner said.

They can also assist business owners who might want to move into new buildings but don’t want to own them, helping forge relationships between the business owners and investors who want to buy and lease properties. The Trillium team also has off-market connections, including access to databases of properties for sale that aren’t publicly listed, that allow them to act discreetly to connect buyers, sellers, and investors.

“You don’t always want to have a big sign in front of your place,” Knepper says of local business owners looking to expand or relocate. “We pair the people. We have investors who want to invest in local businesses.”

In short, because of their vast experience and dedication, the Trillium team can serve as a one-stop shop for commercial real estate matters. They buy and sell everything from medical buildings to retail properties for clients ranging from mom-and-pop shops to national franchises.

“It’s an exciting time to be part of commercial development in the Eau Claire area!” Filipczak says. “Focusing on the environmental impact, infrastructure, along with the economic and social impact is essential for a community’s success.”

The team’s rich experience also means they know the region — and its real estate market — inside and out. “Our expertise gives us a pretty good idea of where it’s been and where it’s going,” Knepper says.

Ultimately, working in commercial real estate is all about building connections in the community, he says. This can mean helping clients see their dreams come true by buying or leasing a building, he says, or by helping them close a chapter of their lives and reinvest in something new.

When asked why he enjoys this work Tanner says, ““For me, it’s the thrill of not knowing day to day what’s going to transpire. It is the ultimate triumphant and humbling experience. Helping people with their goals and dreams is what keeps it so amazing.”

Whether it’s buying, selling, leasing, or managing, “Everything that we do, we’ve done personally.”

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Could New Zealand's radical new housing law help Canada curb its skyrocketing real estate prices? – National Post

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New Zealand is currently plagued by a real estate market that is even more unaffordable than Canada’s

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A radical new law intended to reduce New Zealand’s infamous housing crunch could well be a model for how Canada could curb its ever-skyrocketing real estate prices, according to experts contacted by the National Post.

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This week, in a rare bipartisan action, the New Zealand government introduced measures to quash “overly restrictive planning rules” that hinder development in urban cores.

New Zealanders may now develop up to 50 per cent of their land — and build up to three storeys — without requiring consent from municipal authorities. The reforms also unleash landowners to build up to three homes per lot in areas that previously restricted those lots to one or two homes.

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While the measures do not mandate development of existing homes, they mean that New Zealanders now have much more freedom to build on their land without butting up against municipal planning laws. A similar law applied to Vancouver and Toronto, for instance, would automatically free builders from the need to seek local approval for a laneway house.

A government-commissioned analysis by Pricewaterhouse Coopers has estimated that the new measures will spur a building boom expected to add between 48,200 and 105,500 new units of housing in New Zealand by the end of the decade.

“I think reforms like this would likely help increase Canadian housing stock quite a bit,” Nathanael Lauster, a housing density researcher at the University of British Columbia, told the Post.

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Lauster helped created the Metro Vancouver Zoning Project , an effort to meticulously document zoning laws in Canada’s third largest city. What the project has revealed is that the vast majority of land in Vancouver is zoned for single family homes, effectively making densification illegal in much of Canada’s most unaffordable real estate market.

A screenshot of the Metro Vancouver Zoning Project. Every patch of yellow indicates where it’s illegal to build anything except a detached home or duplex.
A screenshot of the Metro Vancouver Zoning Project. Every patch of yellow indicates where it’s illegal to build anything except a detached home or duplex. Photo by Metro Vancouver Housing Project

In an extensive analysis of New Zealand’s new housing reforms, Lauster called them a “welcome new model” for stripping “exclusionary” powers from the hands of local governments, which disproportionately favour the interests of existing homeowners. “It’s relatively easy for municipal politics to become captured by those most resistant to change and greater inclusion,” he wrote.

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New Zealand’s new measures were supported both by its Labour Party government and its conservative National Party opposition. Tellingly, the policy’s official launch was attended by National Party Leader Judith Collins.

“National supports this policy because it focuses on supply. Rather than making life harder for property owners, this policy tells them that you have the right to build,” Collins told a Tuesday press conference .

The National Party leader also struck out at Kiwis who opposed the law on the grounds that it would strip communities of their “character.” “Our communities lose their character when people can’t afford to own their own home,” she said.

New Zealand is currently plagued by a real estate market that is even more unaffordable than Canada’s. The gap between New Zealand’s average incomes and its average real estate cost is currently among the highest in the OECD .

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Notably, the problem continues to grow despite the fact that New Zealand maintains strict controls on foreign ownership. In 2018, the country banned non-residents from purchasing pre-existing New Zealand real estate, although foreigners are given limited reign to purchase new builds.

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Canada’s already overheated real estate market is on a fast track to match New Zealand for unaffordability. In just the last year, average Canadian home prices soared by an incredible 21.4 per cent .

The singular reason for this is lack of supply. Canada has the lowest number of housing units per capita than any other country in the G7, a ratio that is only getting worse as lacklustre housing development is met with massive population growth.

In Canada, any law to defang municipal zoning laws would need to come from the provinces. With New Zealand having a population of only five million, its national government often makes decisions that would be considered regional issues in Canada.

However, there is strong precedent to show that Canadian provinces have relatively free reign to steamroll municipal laws whenever they want to.

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One of the starkest recent examples was when the province of Ontario abruptly cut the size of Toronto City Council in half.

While the City of Toronto took the issue to court framing it as an undemocratic coup, just this month the Supreme Court of Canada ruled that Ontario acted constitutionally.

In the recent Canadian federal election, all three major parties debuted housing plans that mostly skirted around the issue of municipal barriers to development. The Conservatives proposed tying federal transit funding to a city’s willingness to densify, but there were no blunt New Zealand-style promises to override onerous local zoning laws

“If there was a blanket up-zoning of land in Canadian metropolitan areas, it would lead to an increase in the housing stock,” said Steve Lafleur, an analyst specializing in housing affordability at the Fraser Institute.

The libertarian-minded Fraser Institute isn’t one to advocate stricter government control of an economic sector, and Lafleur said that provincial “micromanaging” of local zoning would not be ideal. Nevertheless, he said, “given immense demand for housing, it is impossible to believe that there would not be a boom … if denser housing were allowed.”

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Office real estate may be struggling, but there are bright spots in commercial real estate – Financial Post

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Industrial real estate has emerged as an unexpected saviour, with leasing volumes rising across Canada

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The suburbs made a remarkable comeback during COVID-19, as residential prices, rents and sales escalated faster than those in the urban core, while commercial real estate data depict a similar picture of strength and resilience in the areas outside the downtown areas.

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Indeed, the real estate story during COVID-19 is a tale of not one, but several markets. One is that the roaring housing market defied all predictions of doom and gloom, with unprecedented increases in demand coupled with lacklustre supply pushing housing prices upwards.

Another is focused on commercial real estate markets, which are further differentiated by geography and type. Often concentrated in the urban core, office real estate continues to struggle with growing vacancy rates and softening of rents. The short-term forecasts for office markets spell even more trouble, with vacancy rates projected to rise further.

But not all is lost in commercial real estate. Industrial real estate, especially suburban warehousing space, has emerged as an unexpected saviour, with leasing volumes rising across Canada. And if you thought COVID-19 had taken the retail sector down, think again. The on-again, off-again restrictions have certainly hurt retail real estate as has the shift to e-commerce. But retail leasing volumes started to recover after the second quarter of 2020, and retail vacancy rates are forecasted to stay steady.

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Recent data from CoStar Group, which tracks and analyzes activity in commercial real estate markets, demonstrates the diversity in market trends. For example, office leasing, like residential real estate sales, declined in the first quarter of 2020. But office leasing has since struggled to fully recover, while residential sales sprang back almost immediately.

The decline in office leasing is most pronounced in Toronto, where CoStar Group data show leasing volume in the third quarter of 2021 was 47 per cent lower than the average for the same quarter from 2018 to 2020. Other major markets, including Calgary and Edmonton, which were struggling even before the pandemic, showed similar declines.

The office market in Vancouver, though, showed resilience. Leasing volume there was up by 33 per cent in the third quarter of 2021 compared to the average for the same quarter from 2018 to 2020. Why is Vancouver bucking the trend? Carl Gomez, chief economist and head of market analytics at CoStar Group Canada, believes it’s because of the number of small- to medium-sized tech companies located there.

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  1. The higher number of housing starts this year has only reached the same level observed decades ago when Canada’s population was nearly half of what it is today.

    Supply is the only cause and solution to Canada’s housing woes — it’s time to be bold

  2. Home prices have been rising at over 10 per cent per year as of late.

    How a little mortgage math helps swing the own/rent debate in favour of buying a house

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    Housing crisis? What crisis? Canada has struggled to house people for decades

Toronto’s urban core is dominated by firms specializing in banking, finance, law, and insurance. The shift to working from home has been more pronounced in those sectors, according to Statistics Canada. The decline in office space leasing was, therefore, expected given the declining demand.

Suburban office markets, however, have managed to stay in the black. The net absorption of office space has been negative in downtown Toronto since the second quarter of 2020. But the suburban Greater Toronto Area (GTA) has fared much better, with positive net absorption quarter after quarter.

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The urban-suburban divide also persists in Vancouver. The net absorption of office space has been negative downtown, at least since the first quarter of 2020. The suburban office markets, on the other hand, have reported positive net absorption. Even in the second quarter of 2020, soon after COVID-19 was declared a pandemic, suburban Vancouver reported almost one million square feet in net absorption.

The suburban markets are also conducive to the growth in industrial real estate. By the fourth quarter of 2020, industrial leasing had topped pre-pandemic leasing levels in Canada. Furthermore, an additional 16 million square feet of industrial real estate is in the pipeline for Toronto and almost eight million for Vancouver.

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The better-performing suburban commercial real estate markets in Toronto and Vancouver suggest a slight shift in location preferences that the pandemic has accelerated. However, one should not be quick to write-off downtown areas just yet. With offices and educational institutions resuming face-to-face operations by early next year, downtown spaces are expected to be back in demand, which might require vacancy forecasts to be revised downwards.

Murtaza Haider is a professor of Real Estate Management at Ryerson University. Stephen Moranis is a real estate industry veteran. They can be reached at the Haider-Moranis Bulletin website, www.hmbulletin.com.

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Calgary housing market sees best Q3 since 2014, says real estate board – CBC.ca

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Calgary had its strongest third quarter for housing sales since the price of oil plummeted in 2014, according to the latest report by the Calgary Real Estate Board (CREB).

There were 6,628 sales in the third quarter of this year, a sign that even as the pandemic is continuing to dampen the local economy, Calgary’s housing market remains resilient, says CREB’s quarterly update report released on Wednesday.

The report says much of the growth in demand has been driven by the low interest rates and the fact that many buyers’ incomes were not impacted by the pandemic and in fact saw their savings grow.

Overall, residential prices in Calgary rose by one per cent over the previous quarter and are about nine per cent higher than prices recorded in the third quarter of last year, the report said. 

CREB’s chief economist, Ann-Marie Lurie, says much of the upswing in activity was driven by detached and semi-detached home sales. And she said while supply has risen, it’s still somewhat of a seller’s market in Calgary. 

“Supply-demand balances improved for buyers compared to what we saw in the spring, but the market continued to favour the seller in the third quarter,” she said.

The report says the benchmark price is $538,700 for detached homes. That’s up 10.5 per cent from last year.

In the semi-detached market, the benchmark price is $427,767. That’s up 9.3 per cent from 2020.

For row housing, the benchmark price is $299,933 — 8.5 per cent higher than last year.

And in the apartment-condo market, demand rose in the third quarter, but to a lesser extent, the report says.

“The condominium market never entered sellers’ market conditions like other property types, but at five months of supply, this market is considered relatively balanced,” the report said.

The benchmark price in this sector is $253,533. That’s up by roughly 2.5 per cent year over year.

CREB also notes that, aside from strong resale figures, the newly built side of the market is also doing well, with housing starts up by more than 70 per cent in Calgary. 

CREB says in its report that the boost in the local housing market activity is contributing to an economic recovery that’s also being driven by the uptick in oil and gas prices. 

“This has contributed to employment growth in not only the finance, insurance and real estate sectors, but also the construction industry,” the report said. 

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