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Canadian CRE Investor Portfolios Strengthen with Multifamily Real Estate

The Canadian Commercial Real Estate (CRE) market seems stronger than ever, despite all the ongoing pandemic challenges.

New opportunities to strengthen investment portfolios continues to be available for Canadian CRE investors. Multifamily real estate properties are some of them.

Canada’s Housing Market Is Hot!

When COVID hit, many experts predicted a decline in home prices across Canada, some saying they would decrease by up to 18%. But it seems, Canada’s housing market is going as strong as ever.

Canada’s housing prices have already been high, but no one expected them to reach new record highs during the pandemic; Increasing by 13.5% in the past year and reaching a $676,600 benchmark in January. Interest rates have jumped lower though, which is excellent news for people looking to borrow funds to buy a home or invest in commercial real estate.

 

Supply and Demand for High-Rise Multifamily Properties Stays High

Multifamily properties have always been considered a smart and profitable investment. These days, a growing number of Canadians are looking for well-located, high-rise multifamily properties to live in, especially those with energy-efficient programs.

That’s why many CRE investors are currently focusing on those properties to meet the high demand with an even higher supply.

 

Read more:

https://www.redevgroup.com/news-article/multifamily-real-estate-strengthens-cre-investor-portfolios-in-canada

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All Maison Birks Stores in Canada to be Reopened

When the pandemic forced most businesses worldwide to shutter their doors, Birks Group wasn’t the exception. The luxury jewellery retailer temporarily closed all its Maison Birks stores across Canada to prevent the further spread of COVID-19.

Fast forward several months, and we can now finally revisit all Maison Birks stores, albeit following specific health and safety guidelines.

 

Concierge Service and Online Shopping

Although all 28 Maison Birks stores across Canada were closed until recently, customers could still shop online. Even with the stores open once again, they can always make orders online and have their timepieces and jewellery delivered straight to their door.

A big part of Birks Group is working closely with clients to help them find their perfect timepiece, necklace, ring, and a wealth of other jewellery pieces.

Following the lockdown, the company launched a concierge service in Toronto, Montreal, Vancouver, and Calgary.

The pandemic hasn’t put a stop to celebrations, such as anniversaries and graduations, so Birks made a mission to be there for all its clients. Canadians could make orders by phone or email to get a top-notch concierge service and receive their orders by mail.

Even with all the stores reopened, they can still reach out to Birks by phone to enjoy its luxury concierge service.

 

Read more at:
https://www.redevgroup.com/news-article/birks-group-reopens-all-its-maison-birks-stores-in-canada

 

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Final Construction Phase for Bayside Toronto

Commercial real estate investors are constantly searching for ways to keep their funds moving and growing. Toronto continues to prove be a magnet for CRE investors and projects similar to Bayside Toronto, a luxury waterfront development located in the East Bayfront. These projects and their investor’s funds continue to work for them even during covid-19.

 

T3 Bayside

T3 Bayside will also be a mixed-use space, except it will have commercial use. It will feature offices and retail properties, all leased by the CBRE Group, Inc.

This part of the Hines’ project will include two mixed-use buildings, which will occupy over 500,000 square feet of space. Due to the high market demand and the sustainable build (the two T3 buildings will use mass timber for construction), they’re expected to attract many tenants.

 

Bayside Toronto

Bayside Toronto is one of the biggest Canadian commercial real estate projects by Hines, an international real estate agency, and this project is speeding up its development. Together with other investors Hines, just like ReDev Properties, are creating a mixed-use spaces that includes retail, offices, condos, cultural venues, restaurants, and shore promenades in Toronto.

Aqualuna is the fourth and final construction phase of the Bayside Toronto project. The other three include Aqualina, Aquavista, and Aquabella, all of which are luxury condominium complexes at the waterfront.

Aqualuna is also primarily a condo complex that’s a joint venture of Hines and Tridel, a Toronto-based real estate developer. Nevertheless, it will also feature a large retail space – about 18,000 square feet on the ground floor. Its total 468,000 square feet of space will also house a luxury lounge, an amenity terrace, and a pool overlooking Lake Ontario.

 

Read more at:
https://www.redevgroup.com/news-article/bayside-toronto-enters-its-final-construction-phase

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Toronto Mixed-Use, Multi-Tower Redevelopment

Upgrades to the commercial districts of Toronto, Ontario are always welcomed by retailers and CRE investors alike. And this time, it’s the Golden Mile district mixed-use redevelopment that’s set to undergo massive changes. This redevelopment project is expected to attract more visitors and more foot traffic. With everything going according to plan, Golden Mile’s multi-tower project is on the path to becoming the hottest part of town.

 

Plenty of Green Spaces 

While the multi-tower mixed-use redevelopment project initially suggested a total of 3,500 m² for parks and open spaces, the area’s been increased to astonishing 5,694 m².

This comes as great news for retailers who are expecting an increase in foot traffic. After the coronavirus pandemic’s been put under control, consumers are expected to flock to parks and open spaces and enjoy greater freedom once again, which will inevitably lead to more interest in brick-and-mortar shops, cafes and restaurants nearby, and subsequently more spending.

 

What This Means for Canadian CRE Investors 

With the proposed redevelopment project in Toronto, everyone’s showing greater interest in the Golden Mile district. From potential new renters in the area to business owners looking for new office space and excited retailers who are looking to increase their sales – everyone is excited to see this project succeed.

Now is a good time to invest in retail CRE in Ontario and receive a higher return on investment.

 

Read more at:
https://www.redevgroup.com/news-article/multi-tower-mixed-use-redevelopment-in-toronto

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Canada March 2020 Retail Sales: Who were the winners?

When looking at how fast stay-at-home orders came into effect, social distancing, work from home, and masks became more normal it’s no surprise that retail and stores took a hit in sales during March. Even with online orders and outside pick up to help ease people’s minds and keep everyone safe, many people are not shopping. You can see this fear and unease in people even in statistics, looking at retail sales data for March has had a significant decrease.

 

Retail Sales Data

Statistics Canada released record-breaking sales data for retailers in the country. The data is broken out by each sector and you can clearly see what has happened to non-essential businesses when they were forced to close their doors halfway through March. 

Looking at the March sales data you can capture a glimpse into the panic during the first weeks of closure and see the overall decline in sales of 10 percent in March to approximately $47 billion, just as the lockdown was starting to take effect. According to the Financial Post, only 40% of retailers were closed for an average of five business days in March. However, 91% of clothing and other such accessory stores were closed for an average of 13 days.

What is the data showing and what does it mean? Although it looks like there was a decline of 10 percent in March, if we take out gasoline and auto sales, the stats actually reveal an increase of 2.8% in retail sales in March 2020, driven mainly by grocery sales. Grocery sales have had a significant increase, accounting for a third of retail in March.

April however is likely a different story as retailers were forced to be closed for the whole month. StatsCan is estimating that Aprils’ data will show approximately a 15 percent decline in sales. 

Overall as businesses are closed in May as well, this back-to-back decline for such a long period of time will be new unchartered waters for all of us. 

 

Who are the Losers and Winners during March 2020?

One thing is certain; many Canadians are itching to go back to normal, so the question is, where are we headed next? 

The main deciding factor between winners and losers during this time is if it is an essential or non-essential retail business.

Retailers that sell things such as clothes, shoes, and luxury goods have been some of the hardest-hit, they lost half their retail sales if not more, as compared to last year during the same time. Retailers that did the best obviously include groceries, but also beer, liquor, and beverages; earning 20 to 30 percent more compared to March in 2019.

Other sectors that did well include health and personal care that had a 4.6 percent increase, e-commerce jumped up by 40.4 percent, and cannabis climbed up 19.2 percent.

The stark contrast in these numbers and each different market show a true divide between the retailers directly affected and those who actually boosted profits or faired well. As investors, we need to stay on top of knowing who were the winners, and who will continue to be to know exactly where to direct our investments.

 

Summary

As the data shows, Canada retail had varying outcomes during March 2020 but overall did okay. Losses were found in more luxury services and retail businesses but boosted in essential services. April will show huge declines in sales because of the month-long closure but May will hopefully show a bit of bounce back with retailers finding ways to still provide their services. 

Which businesses will bounce back and who will drive the eventual economic recovery, is ultimately the largest question of all and what everyone will be watching for.

https://www.redevgroup.com/news-article/canada-march-2020-retail-sales-who-were-the-winners

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How COVID-19 Has Affected the Canadian CRE Market | Canadian Real Estate News

As you may have already read, the novel coronavirus has left an impact on industries around the globe with the Canadian real estate market being no exception. 

These unprecedented developments have left several CRE investors pondering on the future of the market. 

While the situation is very severe from a health stance, Canadian retail CRE investors are actually in a good place and would benefit from investing in commercial real estate during COVID-19. Here’s why!

 

Canada and COVID-19

The number of confirmed cases with COVID-19 are on the rise and this has sent some into a state of panic. Many fear that the worst is yet to come, and governments, healthcare officials, and businesses are doing all they can to stop the epidemic from spreading. 

That means closing restaurants, schools, gyms, museums, and shopping malls around Canada. Many private and public institutions have officially shut down to flatten the curve and remain compliant with social distancing norms.

 

Industries Thriving in the Pandemic 

While clothing retailers, restaurants, and coffee shops cannot help but to close their doors for the duration of COVID-19, Canadian CRE investors don’t actually have any cause for anxiety. Many commercial retail spaces are open to serve people who are in lockdown. 

Grocery stores, pharmacies, medical supply shops, and medical offices are naturally getting more foot traffic, and this will go on for the duration of COVID-19. 

They provide essential products and services, and even if a complete lockdown is ordered, as we’ve seen in countries such as Italy and Spain, and in various cities in both China and the U.S., these retail locations have remained operational. 

 

The Future Is Hopeful 

Regardless of the current situation, the future is bright for retail CRE. Those who invest in retail real estate now stand to benefit financially. At the moment, the costs of buying CRE are lower, and once the pandemic is put under control, retailers will jump at the opportunity to rent out spaces, open up shops, and regain financial stability just like what’s happening in China as many retailers start to reopen

It’s expected that shopping at brick-and-mortar locations across Canada will improve to pre-Corona levels; especially restaurants, entertainment venues, gyms and discount retailers. 

 

Conclusion

Investing in Canadian retail CRE could offer a big return on investment once the pandemic threat has passed. There are already reports analyzing “retail recovery following containment of COVID-19” as China has initiated its reopening. This confirms that while many around the world are currently experiencing restrictions, it will not last forever, and the future appears to be bright for those wise enough to make strategic investments now. 

For more information, please visit:

https://www.redevgroup.com/news-article/covid-19-and-its-effect-on-canadian-cre

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Malls Adapting to the Newest Changing Trends in Saskatchewan

Photo Credit: Pixabay

The past few years have been quite challenging for some Saskatchewan malls and shopping centers. The rise of E-commerce retailers and online shopping, in general, has evidently caused a decrease in foot traffic and a relatively significant drop in profits.

Luckily, there’s a silver lining. Many of Saskatchewan’s most prominent malls are adapting to the changing trends and are quickly becoming consumer hotpots once again. If you have an interest in Canadian retail and commercial real estate, this might just be the right time for investing.

 

New Types of Stores Opening up Across Canada’s Malls 

As one door closes, another one opens. And while some of the biggest tenants are leaving Saskatchewan malls, Regina’s Cornwall is set to become the home for many renowned brands. Urban Planet, Ardene, and Eclipse are just some of the newcomers in this downtown mall.

When it comes to shoe and apparel stores they might be the minority in the malls of the future; however, expect to see an increase in the number of medical offices across Canada’s malls.

Dentists, optometrists, private general practitioners, and more are expected to set up shop in malls in Saskatchewan, Alberta, Ontario, and other provinces. Even more so as events like global pandemics and the normal flu season and other diseases continue to occur.

 

Experience-Based Malls Are Here to Stay 

Besides medical offices, Canada’s malls will boast a few more types of businesses. The malls that thrive and survive are those that don’t just offer shopping, but those that offer experiences.

 

Read more at:
https://www.redevgroup.com/news-article/saskatchewan-malls-adapting-to-changing-trends

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The Canadian Real Estate Market is in a Golden Age

Canada has proven to be one of the best destinations to invest in global and domestic capital. When it comes to the 2020 Canadian Real Estate Market, this is the best decade to take advantage of commercial real estate properties in Canada and there are several reasons why.

First, Canada has the highest lease demand in its history. Rent levels are also constantly rising due to market expansion and increased opportunities. Companies renting retail space are also fulfilling their part of the deal by occupying more buildings than ever before.

Canadians aren’t only focused on booming metropolises like Toronto and Vancouver these days. Commercial real estate opportunities are constantly expanding into areas like Saskatoon, Edmonton, and Calgary, among other cities. Let’s analyze the important data of the 2020 Real Estate Market.

 

Statistics for Canadian Retail Estates

Record demand for properties in the Canadian Real Estate market is due to fluctuating societal changes, advanced technological developments, and various developing policies across several years. Large Canadian cities have become lucrative options for businesses, investors, and residents to take advantage of.

Generally, commercial real estate has been demonstrated as a stable and profitable investment for individuals. For example, the retail sector is changing its perspective and mindset on uses for certain spaces and prime locations. Brick and mortar stores are being transformed into pick-up stations for just about everything from food to clothing.

Food services and cooking facilities are gradually being set up for delivery-only meals, marking a new trend in cities like Toronto and Vancouver. Aging retail properties in the downtown and suburban cores of major markets are being rejuvenated through redevelopment plans.

National statistics for retail properties show that there will be about 4.31MM sq.ft of new supply in 2020 and total retail sales are going to increase by 2.9%. According to CBRE Research, total retail sales per capita are forecasted at $16,801 versus $16,480 in previous years. It is expected that retail in 2020 is expected to outperform its performance from last year.

 

Looking Beyond The Big Cities 

The biggest real estate changes have historically happened in the largest cities. However, new data suggests that there is movement going on in smaller markets as well. These smaller cities are getting their spotlight due to broader workplace trends and global investments.

Domestic companies also engage the real estate market and compete with foreign capital. Their primary markets are Ottawa, Quebec, and the Waterloo Region. Projections show that many smaller markets will outperform their forecasts, including:

* Montreal by 13.8%

* Quebec by 10%

* Waterloo by 10%

* Ottawa by 8.5%

 

Regional Statistics 

The Canadian Real Estate Market Outlook forecast shows that Calgary retail commercial retail investments are going to grow over $400 million compared to $386 million in 2019. Even though Calgary is a hot rental market for apartments, the trend is rubbing off on commercial retail as well, and there is noticeable growth.

On the other hand, the total retail sales growth in Saskatoon is projected to have a 3.7% increase in 2020 compared to a year earlier. Along with large mixed-use development projects for both commercial and residential space, it’s expected that the market will grow even further.

 

Conclusion 

Canada is entering the new golden age of retail commercial real estate, and the numbers show it. All indicators are strong and positive. If you want to learn more about it, contact ReDev Properties today.

https://www.redevgroup.com/news-article/canada-cre-entering-golden-age

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Manulife Place Store in Downtown Edmonton is Getting Redeveloped

The iconic Manulife Place store sitting on the corner between 101st Street and 102nd Avenue in downtown Edmonton has been at the same spot since 1983. It’s a famous brand in Canada, and people were used to seeing their store in Edmonton.

After almost 40 years, the company has decided to redevelop its store and revamp it completely. This comes at a time when most of Edmonton is blossoming once again. As Manulife head of asset management, Ted Willcocks says, “The City of Edmonton is undergoing a renaissance that will breathe life into its downtown service and amenity offerings.”

 

Primary Goals of the Redevelopment 

The whole redevelopment project has four primary goals that need to be achieved after 18 months:

-Reconstruction of the exterior façade with a modern look.

-Retail storefronts will be placed at the exterior to improve the shopping experience and a better view of the store.

-The interior will get new communal areas, LED lighting, and new flooring.

-The Manulife Place employees will also get new amenities, including a rooftop terrace with gardens stretching across 45,000 square feet.

 

Downtown Edmonton Retail is Attractive to Investors 

In the last few years, both downtown Edmonton and the ICE District have been under reconstruction. Various towers and buildings have been reconstructed for retail stores, business spaces, offices, hotels, and residential purposes.

The reconstruction of the Manulife Place store is just another project in line. It shows that the city as a whole is doing well and that companies are able to invest back into their infrastructure.

 

Read more now:
https://www.redevgroup.com/news-article/downtown-edmonton-manulife-place-store-getting-redeveloped

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Canadian CRE Market to Maintain its Edge in 2020 Per Morguard Reports

The Canadian real estate market is alive and well. In fact, it is anticipated to be as strong as ever in 2020 following its upsurge in 2019, per Morguard. 

Morguard Corporation is a Canadian real estate company that publishes its predictions in the 2020 Canada Economic Outlook and Market Fundamentals Report. Below, I’ve highlighted the most vital forecast information from the Morguard report.

 

Canada’s CRE is on an Upward Trajectory

The retail facet of the CRE has displayed phenomenal growth in 2019 and continues to evolve in the new year. In the middle of last year, the national retail vacancy dived by 100 basis points to reach 5.8%.

By the by, numerous investors have seen big potential in Candian retail CRE assets, so much so that this nation has welcomed a staggering $3.1 billion investment in retail properties.

Given that this estimate is way above the long-term average, commercial real estate properties across Canada will continue to be seen as an incredibly formidable investment in the new decade.

 

Non-Retail CRE Also Sees Its Fair Share of the Action

Morguard has also forecasted that other commercial real estate segments in Canada will perform splendidly in 2020. 

 

Housing

The housing market in Canada has finally achieved some stability after experiencing a sluggish 2019. Home sales and prices have steadily grown for 7 months consecutively in Toronto and Vancouver. 

Over the span of the next 2 years, the national housing sector is anticipated to improve the real estate market significantly. The rental apartment industry has a track record of the biggest ongoing growth that will continue to generate positive numbers in 2020. 

In 2018, the rental apartment sector generated a whopping $8.3 billion in multi-family investments. In 2019, the figure was approximately $4 billion in the first half alone. 

Trends clearly show that more Canadians are downsizing and renting out their apartments. Morguard anticipates that rent rates will skyrocket with this growing demand. 

 

Corporate

The Canadian corporate segment is claiming a slice of this pie. With a soaring performance last year, the nation’s tech industry is largely to be credited.

Till mid-2019, Canada generated $5.5 billion in the office segment in investments alone. During that time there was an 11% national vacancy rate. Today, Vancouver and Toronto display the lowest vacancy rates in North America as far as downtown office space is concerned.

In Alberta, Calgary has been experiencing low energy prices and skyrocketing corporate vacancy rates which are over 20% at the moment. 

 

Industrial

The industrial sector in Canada showed record investments totalling $12.7 billion in 2018. This trend continued well into 2019 and is expected to do so in 2020 as well. The country is in need of more industrial spaces to meet the growing demand. During the first 6 months of 2019, the national availability was just over 3% which was the lowest in 20 years.

 

Conclusion

The CRE market in Canada has displayed an impressive performance in 2019 in spite of the international economic disputes and stunted GDP growth of 1.5%. Canada has one of the fastest-growing populations and this is one of the most essential factors that has aided the commercial real estate market in its steady growth.

The rental segment continues to hold its own and Canada will witness an influx of investors in 2020, per Morguard. CRE assets have made capital investments a very attractive proposition. All in all, the market is expected to be on an upswing in 2020. 

For more information, please visit;

https://www.redevgroup.com/news-article/canadian-cre-market-to-stay-strong-in-2020-morguard-reports