A street-level view of the 87-storey tower proposed at Toronto’s downtown Bay and Bloor intersection. (Courtesy Herzog & de Meuron)
Labour Day has passed and fall looms. That means it’s time for us to play catch-up on the commercial real estate scene across Canada.
If you’ve been out of the office during the summer (we mean that in the figurative sense considering how many folks are working from home these days), and are wondering if you’ve missed any major Canadian commercial real estate news, then read on.
We present the 2020 version of RENX’s annual Summer Commercial Real Estate Review.
We’ve included a selection of the most-read and most significant stories written for RENX since June, followed by a few of the most insightful submissions from our Columnist Contributors.
As with previous summer reviews, these stories are not listed in order of importance, because depending on your sector(s) and market(s) of interest, what’s vital for one CRE professional to know might not be relevant to others.
So welcome back to work . . . and read on . . .
Dutch firms plan 87-storey downtown Toronto high-rise
Dutch developers Kroonenberg Groep and ProWinko are proposing an 87-storey, mixed-use high-rise which would tower over the downtown Toronto intersection of Bay and Bloor Streets. If approved and built as proposed, it would be Canada’s tallest building. Read the full story
WalMart plans new GTA warehouse, part of $3.5B investment
WalMart will build a fifth distribution centre in the GTA as part of a $3.5-billion commitment to its Canadian operations during the next five years. The centre will join another 300,000-square-foot facility under construction in Surrey, B.C.; and major upgrades to a third facility in Cornwall, Ont. Read the full story
ELAD Canada acquisition talks ‘progressing well’
Shortly after word of the sale of an interest in ELAD Canada to Plaza Partners and Argent Ventures became public, the CEO of ELAD Canada confirmed talks were “progressing well.” The transaction involves an initial payment of $225 million for 37 per cent of ELAD Canada as well as two U.S. properties. Read the full story
RioCan sells 50% interests in Toronto, Ottawa developments
RioCan REIT continued its trend of bringing in partners on major developments, selling 50 per cent interests in two of its residential-based projects to Maplelands Development Inc. (Dufferin Plaza in Toronto) and Killam Apartment REIT (Luma at Elmvale Acres in Ottawa). Read the full story
See also:RioCan continues to develop heavy slate of projectsRead the full story
Dream launches $2.5B Calgary Alpine Park
Calgary’s ongoing economic challenges didn’t deter the construction launch of the massive $2.5-billion Alpine Park mixed-use development by Dream Unlimited. The 646-acre master-planned community will be home to about 10,000 residents, plus retail/commercial space, parks and amenities. Read the full story
498 housing construction projects delayed in GTA: BILD
A Building Industry and Land Development Association (BILD) survey found 498 residential construction projects by its members in the Greater Toronto Area had been delayed by the COVID-19 pandemic. In Toronto itself, 65 per cent of these projects were delayed three to six months and 32 per cent faced delays of greater than six months. Read the full story
Coquitlam plans dense, vibrant new downtown core
Coquitlam is embarking on a major urban planning mission that will take decades to realize: the transformation of 1970s suburban strip malls and parking lots into a rich, diverse and walkable urban core. Read the full story
Canderel buys Montreal office building, plans new build
Canderelpurchased 6600 Saint-Urbain in Montreal from Olymbecin a move by the developer to expand its presence in the Mile-Ex neighbourhood, an increasingly popular hub for artificial intelligence firms. The developer also plans a 250,000- to 500,000-square-foot office development at 155 Beaubien Street West in Mile-Ex. Read the full story
Choice buys Toronto West Block, Weston Centre for $206M
Signet sells 7 Toronto apartment buildings to Starlight, Timbercreek
2050 Keele St., in Toronto is part of two apartment portfolios sold by Signet Group to Starlight and Timbercreek. (Google Street View)
Starlightand Timbercreek purchased seven Toronto apartment buildings from Signet Group for $193.7 million. The portfolios, which comprise 675 apartments located within the City of Toronto, range from a 187-apartment high-rise to an 18-apartment block. Read the full story
Rosefellow to build 3 Montreal, Ottawa-area industrial sites
Montreal developer Rosefellowand its financial partners will invest about $160 million to acquire and develop three industrial sites in Pointe-Claire in Montreal’s West Island; in Montréal-Est; and in Casselman, Ont., near Ottawa. Read the full story
Q2 2020 was RioCan’s ‘most unusual quarter’: Sonshine
Ed Sonshine called it “the most unusual quarter” of his 26 years as CEO of RioCan REIT. Q2 2020 will go down as one of the toughest financially for the trust, but both Sonshine and president/COO Jonathan Gitlin focused on restoring future value and growth during a financial results call with analysts. Read the full story
A sector-by-sector analysis of Canadian CRE: Altus
Accelerated evolution in all commercial real estate sectors, particularly in technology and work-from-home strategies, was a key theme as Altus Group offered a sector-by-sector breakdown on the impact of COVID-19. Read the full story
Office sublease market growing in Montreal, Toronto, Vancouver
The COVID-19 pandemic has led to an increase in sublease office space in major Canadian cities, particularly Vancouver and Toronto. Market experts expected the trend to continue and to expand to other cities as occupiers take stock of the coronavirus impact and future work habits. Read the full story
Rocky View County’s explosive growth continues
The recent announcement of a 1.23-million-square-foot Lowe’s Canada distribution centre in Balzac is the latest example of how the area just outside Calgary has become a magnet for huge commercial real estate developments and job growth. Read the full story
FROM OUR COLUMNISTS:
Can this many transit-oriented developers be wrong?
John Clark, Value, Weighed & Measured: Land values continue to rise. Real estate continues to sell. Developers continue to commit millions toward new developments where the emphasis is on intensification. Read the full column
Top-6 ways the workplace is changing post-COVID-19
David Bowden, CRE Matters: The “great work-from-home experiment” has resulted in changes and realizations. We have adjusted how, where and when we perform our duties. We have accelerated our adoption and use of technology. We might have shifted our views on how we would like to work and interact within our offices. Read the full column
If we want affordable housing, the numbers must work for everyone
Naama Blonder, Design, Policy and Canadian Cities: Earlier this summer, Toronto Mayor John Tory announced the locations for Housing Now’s Phase II sites. They are part of Toronto’s initiative to increase the supply of new affordable rental housing within mixed-income, transit-oriented communities on city-owned lands. Read the full column
Investors should be parking cash in industrial CRE
Barry Stuart, Saskatchewan Edge: In spite of the negative economic impact of COVID-19, the sale and lease activity within our existing industrial market continues. Saskatoon’s vacancy rate rose marginally by 0.12 per cent, to 5.86 per cent, according toICR Commercial’s recent Q2 report. Read the full column
The proven way to accumulate wealth
Greg Placidi, CRE Wealth Insights: Amassing a fortune doesn’t typically happen overnight. Building wealth takes time. Sure, you can make a quick buck . . . but we all know Aesop’s old fable: slow and steady wins the race. Read the full column
TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.
The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.
The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.
“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.
“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”
The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.
New listings last month totalled 15,328, up 4.3 per cent from a year earlier.
In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.
The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.
“I thought they’d be up for sure, but not necessarily that much,” said Forbes.
“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”
He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.
“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.
“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”
All property types saw more sales in October compared with a year ago throughout the GTA.
Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.
“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.
“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”
This report by The Canadian Press was first published Nov. 6, 2024.
HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.
Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.
Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.
The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.
Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.
They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.
The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.
This report by The Canadian Press was first published Oct. 24, 2024.
Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.
Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.
Average residential home price in B.C.: $938,500
Average price in greater Vancouver (2024 year to date): $1,304,438
Average price in greater Victoria (2024 year to date): $979,103
Average price in the Okanagan (2024 year to date): $748,015
Average two-bedroom purpose-built rental in Vancouver: $2,181
Average two-bedroom purpose-built rental in Victoria: $1,839
Average two-bedroom purpose-built rental in Canada: $1,359
Rental vacancy rate in Vancouver: 0.9 per cent
How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent
This report by The Canadian Press was first published Oct. 17, 2024.
