Tag Archive for “business”

Several financial experts predict Canada's economy will experience limited growth this year, and many businesses appear to agree.

According to the Bank of Canada's quarterly Business Outlook survey, 41 percent of Canadian businesses expect less sales volume during the next 12 months, while 37 percent project a sales increase. The survey demonstrates a shift in confidence among companies, as the results mark the first instance since early 2009 that more businesses were more pessimistic about their immediate future than optimistic.

"Responses to the winter survey suggest that the global economic outlook and concerns about demand continue to weigh on firms’ expectations for business activity," the report said. Continue reading »

The Bank of Canada released its third quarter Business Outlook Survey on Monday, and due to increased global economic uncertainty which has driven low posted rates, Canadian business executives are feeling less optimistic regarding future sales.

According to the survey, 39 percent of companies believe sales will grow over the next year, a decrease from 49 percent in the previous quarterly survey. Also, 33 percent of respondents predict slower sales in the following 12 months, creating a 6 percent gap between optimistic and pessimistic companies, the smallest difference since 2009. Continue reading »

According to a recent survey conducted by the Canadian Federation of Independent Business, confidence among the country's small businesses plummeted during August.

The CFIB's business barometer, based on a scale between one to 100, fell to 61.7 in August after reaching 68.3 in July. For perspective, August's reading was the lowest on record since July 2009, which marked the beginning of Canada's recovery from its three-quarter recession. Continue reading »

According to a recent report conducted by the Conference Board of Canada, the profits of Canadian corporate businesses are expected to decline during the second half of the year.

The report refers to the soft U.S. economy as a major factor in this forecasted trend, as exporters and consumer confidence will weaken.

The CBC relies on different indicators to compile its report. Its leading indicator for profitability, which tracks 49 industries nationwide, contracted recently – the first time it has done so in a year – as it fell 0.1 percent after being flat the previous two months. Continue reading »

During the second quarter of 2011, the industrial real estate market in Montreal experienced significant gains, which is important, as the sector had been one of the hardest hit during the recent recession.

A report from CB Richard Ellis revealed that Montreal's market represented more than half of the country's positive net absorption of industrial space during the year's second quarter. In all, 6 million square feet was sold through commercial mortgages or leased – 3.7 million of which were in Montreal.

"We dug ourselves out of a hole," said Brett Miller, executive vice president and regional managing director for CBRE in Eastern Canada. "We were surprised by the strength of the absorption. It surpassed our expectations."
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In a move sure to effect the country's retail landscape, Target recently agreed to transfer the leasehold interests of 39 stores in Canada to one of its biggest rivals, Walmart.

While no financial details have been released regarding the transaction, the move is part of Target's multi-step process to procure more commercial mortgages and buildings in the country.

In all, Target plans to have up to 220 new possible sites. In May, Target had chosen 105 sites to acquire, many of which will become retail stores. In addition, Target now hopes to find a second set of sites this fall, part of its effort to open between 100 and 150 new sites in Canada by 2013.
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Canadian seniors planning to retire somewhere warmer down south can now do so with the comfort and security of attainable United States medical coverage. As of March 23, 2010, President Barack Obama gave his go ahead for the Affordable Care Act, which made possible the new Pre-Existing Condition Insurance Plan that took effect July 1.

Canadians retiring to, or planning to winter the remainder of their retirement in hot states such as Hawaii, Florida, or New Mexico may do so with the coverage of medical insurance, so long as they meet the following requirements:

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In August, 2010, a study conducted by Ipsos Reid on behalf of RBC Direct Investing found that of those investors who considered their portfolios diversified, 61 per cent said that their portfolio was performing as well as they expected and 19 per cent said that it was outperforming their expectations.

More female investors (22 per cent) than male (17 per cent) considered their portfolios to be diversified, while of the 631 Canadian online brokerage clients who were active in trading during the preceding six months of the study, thirty per cent did not consider their portfolio to be diversified or did not know if it was.

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Energy-Efficient Properties Eligible for Premium Discount

Amassing the 25 per cent down payment that most commercial mortgage products require for commercial properties can be difficult. But with the Canada Mortgage and Housing Corporation’s multi-unit (5+ units) insurance coverage, a commercial investor can attain up to 85 per cent financing toward their commercial purchase. This includes financing and coverage for retirement dwellings, licensed care facilities, condominium construction and student residences, new or existing, Canada-wide.

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What is a Cap Rate?

The capitalization or cap rate is a valuation used to give commercial buyers a more inclusive estimate of a commercial property’s value as oppose to, say, a gross rent valuation. The cap rate incorporates a property’s selling price, gross rents, non rental income, vacancies and operating expenses.

A cap rate ratio is deduced by dividing the annual net operating income of a commercial property venture by the commercial property’s sale price or current market value. The annual net operating income equates gross lease income after fixed and variable costs have been subtracted.

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