Tag Archive for “commercial mortgage”

Canada's housing market has been on an upward trajectory for the past few years, with no real end in sight. In Ottawa, bank leaders and financial regulators are at loggerheads over the best course to take to avoid a serious meltdown. Among commercial real estate professionals, however, attitudes and outlooks are good.

The results of the Second Quarter 2012 Canadian Real Estate Sentiment Survey from the Real Property Association of Canada indicated most commercial real estate leaders see continued growth in the sector over the coming year, which will plateau sometime around the fourth quarter. The Overall Real Estate Sentiment Index climbed two points in the second quarter to land at 63 out of a possible 100. Anything over 50 signifies a positive trend, anything below 50 a negative trend. This marks the 11th consecutive survey in which results reflect a positive outlook. Continue reading »

As the American economy continues its climb out of recession, more Canadian financial experts are gaining confidence in their southern neighbors. Still, any slips stateside could carry significant consequences for Canada.

Canadian optimism in the U.S. market was recently measured by the Canadian Institute of Chartered Accountants, along with the Royal Bank of Canada. The agencies found just 22 percent of chartered accountants feel the United States is likely to fall back into a recession, down from nearly two thirds over the previous two quarters. Positive views on the Canadian economy rose during that time as well, with 32 percent now reporting confidence at home.

Still, fears abound. Roughly 63 percent say continued economic calamity in America would negatively impact their business, and 43 percent see the United States as the biggest hurdle to continued Canadian growth. Continue reading »

The Toronto Real Estate Board Commercial Division Members recently reported there was a total of 464,008 square feet of total leased commercial space in January 2012.

This is a 41 percent decline from the total square feet of leased commercial space in January 2011. In addition, industrial space made up for 86 percent of of the total square footage leased, which was a 46 percent drop on a year-over-year basis.

"Firms in the GTA industrial sector have a very cautious outlook right now," said Larry Purchase, commercial division chair. "While the prospects for the United States economy are looking more positive, there continues to be substantial concern surrounding economic recession in Europe and what the implications could be for the global economy." Continue reading »

While global economic uncertainty has many Canadian businesses bracing for a tough year, industry in Calgary is booming with financial growth, increased job prospects and skyrocketing demand for office space.

According to a Globe and Mail report, Calgary's commercial real estate market has reached new heights, matching Toronto as a thriving Canadian city despite a slowing global economy. With businesses flourishing, office space in the city is increasingly hard to come by. Continue reading »

Despite the economic issues in Europe and the United States during the past few months, a new report finds commercial properties in Vancouver remained stable, with prices growing significantly.

According to Avison Young, there were 36 commercial mortgage deals with a total value of $594 million. While that total dollar volume is down sharply from the $1.026 billion seen a year ago, analysts say the issue has been a lack of available supply because owners aren't looking to sell.

The number of major deals is also down significantly. Last year, there were a total of 99 deals. Continue reading »

Recently, officials from Dundee Real Estate Investment Trust announced it reached an agreement with Blackstone Real Estate Advisors to purchase 29 of its office properties.

The former Blackstone offices are located throughout Toronto, Ottawa, Edmonton and Calgary. In all, Dundee will pay $831.8 million for the properties, and as part of the agreement, Dundee will direct five of the assets to third parties for proceeds of $142 million. The remaining 24 offices will then total $689.8 million. Closing is expected to occur on August 15.

Dundee is hardly new to the business of conducting commercial real estate transactions, as it completed the nation's largest commercial purchase ever in 2007. Now, four years later, it has acquired the largest office portfolio ever by a Canadian REIT. Continue reading »

Recently, Pure Industrial Real Estate Trust announced the closing of its purchase of $15.1-million Manitoba industrial property.

In all, the property covers close to 13 acres with a rentable area of 265,843 square feet. The purchase boosts the company's total space acquired this year past two million square feet. PIRET now owns 59 properties in Canada, which covers more than 3.5 million feet of rental space.

As the country's lenders continue to keep the interest rates for commercial mortgages low, more prospective businesses have sought new space.

To purchase its latest acquisition, PIRET paid more than $15 million with $10 million in first mortgage financing and a 5.05 percent interest rate. Continue reading »

According to a recent survey conducted by commercial real estate services firm Jones Lang LaSalle, the office vacancy rate in Winnipeg was the highest in the country.

Overall, the vacancy rate in Winnipeg's downtown and suburban office buildings was nine percent during the second quarter of the year, followed by Montreal at 8.5 percent. The national average during this period was 7.9 percent.

One JLL representative, however, relayed that not too much should be made of the high rate, as it is now down almost 3 percentage points from its peak of 11.9 percent, recorded during the global recession. Continue reading »

As the country's commercial real estate sector continues to record significant figures, a recent report from Colliers International revealed another interesting trend.

According to the report, Vancouver has been experiencing an upward trend in terms of strata office sales, especially in the region's downtown center.

"Strata development has been a significant part of the industrial market for many years and we are now seeing a trend towards strata office, especially in mixed-use projects or specialty buildings, such as medical," said Ron Bragan, the managing director of Colliers in Vancouver. "With today's low interest rate environment, it is an economically feasible alternative, especially for smaller professional firms who also desire a long-term investment." Continue reading »

Despite several recent reports showing increased sales across several provinces and cities, a survey conducted by Royal LePage relayed that these gains could soon come to a halt.

Royal LePage's House Price Survey and Market Survey Forecast showed similar increases to these reports, as many types of housing recorded gains during the second quarter of 2011.

However, while prices were up in many cities, respondents felt the current dramatic increases can not continue. Continue reading »