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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing   April 25, 2019 353   0   0   0   0   0
The power of the multi-residential asset class has waned in Toronto, ending up as the least traded commercial property type during the first quarter of the year, according to Avison Young’s latest Commercial Real Estate Investment Review: Greater Toronto Area study. Avison Young cited extreme scarcity, rather than thinning interest among investors, as the main driver of the trend. GTA’s multi-residential property had $236 million in sales during Q1 2019 (with a 9% market share), considerably lower than the $288 million seen during the same time last year. “The top transaction was the $30-million sale of 15 Walmer Rd.in Toronto’s Annex neighbourhood, representing nearly $385,000 per unit and a cap rate of 2.2%,” the report noted. “Starlight Investments, among the sector’s most active players in 2018, also made the top five with its purchase of a 79-unit Mississauga townhouse complex for almost $27 million.” A significant drop was observed from Q4 2018 (activity representing a total of $602 million), which itself already suffered an even more massive decline from Q3 2018 (activity reaching a peak of $1.2 billion). GTA’s overall commercial sales – covering industrial, retail, office, multi-residential, and ICI properties – fell by 18% quarter-over-quarter to end up at $2.7 billion.Q1 2019 was the second consecutive quarter
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing   April 25, 2019 373   0   0   0   0   0
Metro Vancouver’s robust industrial market has seen sales activity surpass $150 million during the first quarter of the year alone, according to Avison Young’s Spring 2019 Metro Vancouver Industrial Overview. Continuing the red-hot trend set by the record-breaking $1.8 billion in investment last year, the market reached a historically low vacancy rate of 1.2% at the end of Q1 2019. Strong demand and constrained land supply pushed the region’s vacancy level down to the lowest level nationwide for the quarter, Avison Young noted in its study. The crucial factor is “the ravenous appetite for industrial real estate among tenants, owner-occupiers, developers as well as private and institutional investors to date in 2019,” the report added.“Developers remain unable to keep up with demand as industrial vacancy in Metro Vancouver has now remained at less than 2% for the past three years (and less than 1.5% through 2018) despite the addition of more than 10.2 million square feet in the past 36 months.” “While construction of lease product is continuing by institutional investors seeking to hold assets long term as well as by those developers who acquired land at historical costs, the volume is unlikely to have much of an impact on vacancy,” Avison Young principal Garth White explained. “Much of this
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing   April 23, 2019 360   0   0   0   0   0
The federal and Quebec governments have announced the first of a series of new developments aimed at the growing post-graduate student demographic in Montreal. Woodnote Co-operative is slated to be a 90-unit affordable housing project, and it will herald the construction of over 160 affordable rental units in up to three separate developments across the city. “Post-secondary students in Quebec will soon have new affordable housing options thanks to a new funding model dedicated to creating affordable rental units specifically for students,” the governments stated. “This innovative financing model allows student unions and similar organizations to more easily obtain equity and acquire additional funds to develop affordable rental housing projects.This is a first in Canada.Further, this financing model allows the construction of student housing at little to no risk for universities and colleges.” The governments added that as much as $3 million will be invested in the creation of the housing complexes. Montreal is home to two of Canada’s leading universities and a thriving AI research scene.The market is expected to enjoy accelerated commercial development in the near future, brought about by sustained demand from tech firms seeking even more space. “[R&D is] encouraging the development of new purpose-built rentals to meet the growing demand.Rental rent growth will remain robust this year despite
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing   April 23, 2019 350   0   0   0   0   0
The GTA office market saw the absorption of 763,000 square feet during the first quarter of this year, with much of the activity occurring in the downtown and Toronto West areas. This volume has pulled down availability to a decade-low of 8.6%, according to Avison Young’s First Quarter 2019 / Office Market Report:Greater Toronto Area report. Vacancy also went down to 5.6%, with the downtown experiencing even tighter market conditions at a vacancy rate of 1.9%. The absorption has considerably outstripped the addition of 503,000 sq.ft.of new supply.Additionally, 94% of this new volume has already been preleased. “The Greater Toronto Area (GTA) office market recorded impressive results in 2018, fuelled by the insatiable demand for downtown office space – not only from traditional occupiers, but also a growing cohort of technology and co-sharing tenants,” the study noted. Q1 2019 represented the continuation of these trends, characterized by declining availability, robust development activity, and “significant upward pressure on rental rates in select markets and asset classes.” Around 11.2 million sq.ft.of office property is either confirmed or being currently built, representing 6% of the GTA’s existing office stock.However, only 1.1 million sq.ft.is scheduled for completion by the end of this year. Most of this new space will be situated
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing   April 21, 2019 169   0   0   0   0   0
Rental completions in Toronto hit a quarter-century high during Q1-2019, and it’s buoying hopes that the city might finally be on its way towards solving a critical supply problem. The 1,849 units were nearly five times the quarterly average going back to the first quarter of 2016, according to Urbanation, which furthermore noted that, considering there have only been 13,250 units built in 14 years, it is a considerable improvement. “While vacancy rates surveyed within purpose-built projects (completed since 2005) remained extremely low at 0.6%, rent growth showed moderation in the first quarter,” said an Urbanation report.“Purpose-built rents for units available for lease during the quarter grew by 5% year-over-year on a same-building basis, slowing from a 9% annual pace at the end of last year in Q4-2018.As of Q1-2019, purpose-built rents in buildings completed since 2005 averaged $2,398, or $3.25 per square foot (psf) based on an average size of 738 sf.” Condo rents had a strong Q1 showing, although there are signs of cooling. “Condominium rents, on a same-building basis, grew 7.7% psf in Q1-2019, compared to a 9.2% annual increase in Q4-2018,” continued the report.“Monthly condominium rents for units leased during the first quarter averaged $2,376 ($3.28 psf) across the GTA, 7.8% higher than a year ago.” The Federation of
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing   April 21, 2019 374   0   0   0   0   0
The Canadian Civil Liberties Association has petitioned for a judicial review of the Quayside smart city project by Sidewalk Labs in Toronto, amid anxiety that Canadians will be used as “Google’s lab rats.” Among the chief attractions of the development is its widespread use of “Internet of things” sensors, a feature that has both earned praise for pushing the envelope in urban design, and alarm over possible privacy rights violations as the sensors would collect data gathered from residents, workers, and visitors. The fears have been amplified further by the fact that Sidewalk is planning to expand similarly sensor-laden communities into the Port Lands, should the Quayside development prove to be a success. To assuage the concerns, Sidewalk Labs – a subsidiary of Alphabet Inc., the parent company of Google – said that it will not be monetizing the data, and that it will depersonalize all such information collected by the sensors. The CCLA was not swayed by these assurances, however.The group, along with Toronto resident Lester Brown, filed an application with the Superior Court of Justice, seeking to invalidate any agreements established between Sidewalk Labs and the organization responsible for the area’s redevelopment projects. “Waterfront Toronto, and our federal, provincial and municipal governments sold-out our constitutional rights to freedom from surveillance and
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing   April 21, 2019 349   0   0   0   0   0
Vancouver real estate investment volume is shrinking due to perceived instabilities in the market’s regulatory regime, according to CBRE Ltd. The successive introduction of new regulations that target foreigners has done no favours for the market in terms of investment.If anything, Toronto is benefiting more from the situation. “You have policy changes on a snap, on a whim,” CBRE Ltd.executive vice president David Ho told Bloomberg in an interview. “Investors typically look at stability in a market and this is not stability.” CBRE figures indicated that from the $1-billion-plus volumes seen in 2016 and 2017, foreign investment in Vancouver sharply declined to just nearly $350 million in 2018. In comparison, Toronto significantly exceeded its 2017 volume with its $526 million in Asian investment last year. Speculation levies, a wealth tax on homes, and the recently proposed Landowner Transparency Act scared off a considerable number of foreign capital holders, CBRE added. Moreover, Toronto’s status as a vital global tech hub – which continues to magnetize millennials and immigrants – has proven to be a major boost for its commercial and industrial property sectors.Many members of the two demographic groups participate in the city’s flourishing tech and financial services market. “That spells money because young people have to consume, they’re growing
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing   April 16, 2019 202   0   0   0   0   0
There was an increase in purpose-built rental apartment completions in the first three months of 2019. Urbanation says that completions hit a 25-year high of 1,849 units, nearly five times greater than the quarterly average since Q1-2016 and represented significant growth considering only 13,520 units have been built since 2005. But for owners and investors, the increased supply meant weaker rent growth despite strong demand and low vacancy rate. Purpose-built rents for units available for lease during Q1, 2019 grew by 5% year-over-year on a same-building basis, slowing from a 9% annual pace at the end of last year in Q4-2018. As of Q1-2019, purpose-built rents in buildings completed since 2005 averaged $2,398, or $3.25 per square foot (psf) based on an average size of 738 sf. On a same-building basis, condominium rents grew by 7.7% psf in Q1-2019, compared to a 9.2% annual increase in Q4-2018.Monthly condominium rents for units leased during the first quarter averaged $2,376 ($3.28 psf) across the GTA, 7.8% higher than a year ago. Demand lags supply The volume of condominiums leased through MLS grew by 13% year-over-year in Q1-2019 to 6,005 units, but supply grew faster than demand pushing down the ratio of leases-to-listings to 73% — the lowest level in four years.
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing   April 16, 2019 218   0   0   0   0   0
The spring season is not expected to provide much relief for Canada’s challenged housing market. RBC Economics sees a continuation of the weakened demand resulting from a cocktail of negatives for homebuyers including the mortgage stress test, interest rates, economic uncertainty, and affordability. In a report this week, senior economist Robert Hogue says there was no break in March from the housing market slump. Sure, there were some positives, a slight pick-up in Toronto for example with sales up 1.8%.But this barely dented the effects of a 9% drop in the previous month.And tight supply accelerated price growth after a pause. Vancouver, Calgary, and Edmonton all saw a deepening of the slump and Vancouver sales were the weakest since the recession years. Hogue says the impact of poor weather earlier in the year may have been limited and he says it’s likely to be a quiet spring season, especially as measures to help first-time buyers announced in the budget will not be active until later in the year. Are you looking to invest in property?If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save
 
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Mortgage stress test has caused “near recession” housing demand
Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing   April 16, 2019 169   0   0   0   0   0
The impact of the mortgage stress test continues to be shown in home sales in British Columbia. British Columbia Real Estate Association says there were 5,707 sales through the MLS in March, down 23% year-over-year, while the average price was down 5.4% to $687,720. “BC home sales continue to be adversely impacted by federal mortgage policy,” said BCREA Chief Economist Cameron Muir.“The erosion of affordability caused by the B20 stress test has created near recession level housing demand despite the province boasting the lowest unemployment rates in a decade.” Total sales dollar volume was $3.9 billion, a 27.1% decline from the same month last year. Listings increased 36.2% to 34,295 units from a year earlier and the ratio of sales to active residential listings declined from 29.4% to 16.6%. “The sharp erosion of affordability caused by the B20 stress test is now creating pent-up demand, as many would-be home buyers are forced to wait on the sidelines,” added Muir.“Unfortunately, new home construction is slowing as well, which will likely lead to another housing supply crunch down the road.” Are you looking to invest in property?If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing   April 16, 2019 425   0   0   0   0   0
In an effort to curtail money laundering through real estate in British Columbia—a well-documented problem—a group of organizations are lobbying the provincial and federal governments with the appropriate steps to take. The British Columbia Real Estate Association, the Appraisal Institute of Canada-B.C.Association, B.C.Notaries Association, Canadian Mortgage Brokers Association-British Columbia and the Real Estate Board of Greater Vancouver collaborated on how to tackle the problem and also released their joint recommendations to the media. Given that multiple parties are involved in real estate transactions, the group says that it will require a coordinated effort to ensure that unscrupulous forces are kept at bay and prevented from washing dirty money through the province’s real estate. “A real estate transaction involves multiple professionals.It will take a coordinated effort by all involved, working in collaboration with government, to stop money laundering.The joint recommendations and best practices submitted by these organizations reflect their commitment to the professionals and consumers they serve,” read a media statement. A major barrier for would-be money launderers is insistence upon only accepting verified funds, and the group recommends all sectors of real estate align on that point. Additionally, mandatory anti-money laundering education is recommended for all real estate professionals so that they can identify suspicious activity and accordingly report it. “FINTRAC [Financial Transactions and
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing   April 16, 2019 367   0   0   0   0   0
Major developer Cortel Group is spearheading multiple high-rise condo projects in Ontario. The Towers 3 and 4 luxury condo buildings, representing the final phase in the much-anticipated Oak &Co.luxury condominium complex, are scheduled to officially launch on April 27, 2019. Towers 1 and 2 are already being build, while Towers 3 and 4 will be entering the Toronto market starting at the $300s, Cortel Group said in its announcement. “Located at Trafalgar and Dundas East in the Uptown Core, Oak &Co.will be pivotal in shaping the area’s visual landscape while providing countless amenities and creating its own identity,” the developer added. “Situated right in between Morrison Creek Natural Heritage Park and the Uptown Core community, Oak &Co.is a wonderful synthesis of the natural and urban setting that defines all of Oakville as a whole.Most units overlook the leafy landscape by means of generous balconies and large glazed openings.” Meanwhile, the newly announced 60-storey CG Tower is expected to become the tallest building in Vaughan, as well as the tallest structure in Cortel Group’s Expo City development. “Making its mark on the City of Vaughan was Cortel Group’s intention and overall aim.The tower will emerge as a landmark to the Vaughan skyline - anchoring an active urban community complemented by Edgeley
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing   April 16, 2019 370   0   0   0   0   0
Vancouver’s tenants are in a mad scramble for usable office space amid a tight and competitive environment, according to Avison Young’s Tenant Profile Report Q1 2019. Supply scarcity and record-low vacancies are driving a steady increase in the city’s rental rates, which will go on to fuel future office price growth. “Rising rental rates and highly limited availability may start forcing tenants to consider locating outside of Downtown Vancouver in order to fulfill their office requirements.With limited relief until at least 2021 in terms of new development and vacancy expected to remain historically low through 2019 and 2020, upward pressure on rents is likely to continue for all tenant sizes,” Avison Young explained. Tight availability rates are forcing large-scale tenants (those with size requirements exceeding 30,000 square feet) to “plan much farther ahead than typical and explore future opportunities through preleasing or backfilling space that may become available in the future,” the report noted.“They will need to be proactive and flexible well in advance of their lease expiry simply to find an option that suits their existing needs, let alone improve on their current office space.” Meanwhile, tenants looking for space sizes of 10,000 - 15,000 sf are faced with punishing scarcity.From Q3 2018, the availability of such spaces declined by more than
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing   April 15, 2019 191   0   0   0   0   0
The spring season is a mixed one for Canada’s housing markets with some showing gains while others remain under pressure. More than a year on from the introduction of mortgage stress tests, the impacts are still being felt and new measures to help buyers have not yet taken effect. Despite some positive economic conditions, the Canadian Real Estate Association reports that activity remains at some of the lowest levels in years. Home sales via Canadian MLS® Systems edged up 0.9% in March 2019 following a sharp drop in February while actual (not seasonally adjusted) sales activity fell 4.6% year-over-year to the weakest level for the month since 2013;and was also almost 12% below the 10-year average for March. "March results suggest local market trends are largely in a holding pattern," said Gregory Klump, CREA's Chief Economist."While the mortgage stress test has made access to home financing more challenging, the good news is that continuing job growth remains supportive for housing demand and should eventually translate into stronger home sales activity pending a reduction in household indebtedness.” Mixed markets There are some areas where things are improving. While sales in British Columbia, Alberta and Saskatchewan were more than 20% below their 10-year average for March, activity is running well above-average in
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing   April 15, 2019 385   0   0   0   0   0
A digital challenger to Canadian banks has announced a merger than will help it accelerate its growth. Vancouver-based Mogo Finance Technology will combine with Difference Capital Financial with the combined entity expected to be named Mogo Inc. It will focus on its aim to become the leading fintech platform in Canada, offering a range of banking and financial products including a digital mortgage experience. "This transaction enables Mogo to continue to invest in new products and innovation, building on our leadership position in the Canadian fintech space," said David Feller, Mogo's Founder and CEO."We are excited by the opportunity that the Transaction presents for shareholders of Mogo and Difference and are very pleased to have the support of the Difference board.We look forward to working closely with the leadership team at Difference to complete the Transaction." Additional resources The combination will give Mogo immediate access to approximately $9 - $10 million in cash, which reflects proceeds from Difference's two recently announced monetizations. "The merger with Difference strengthens our financial position and represents a significant opportunity to create value for shareholders of the combined entity," added Greg Feller, Mogo's President."Difference has invested in many of Canada's leading technology companies and Mogo has built a valuable distribution platform.Shareholders of both companies will benefit from improved financial
 
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1133 results - showing 61 - 75
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