Aaron and Adam discuss the headlining making news from 2016 that had the biggest impact on Canadian commercial real estate.
A number of brand new office towers in Vancouver remain nearly 100% vacant. For example, 32-storey Exchange tower to be completed in 2017 for $240M. Described as ‘white elephants’ – state of the art, near transit, well located, and to top environmental standards. Vancouver’s office vacancy remains at decade high levels just under 10%.
Edmonton City Council approves another 550 units downtown. Brings total to over $3.0B in downtown Edmonton developments in a provincial market still struggling heavily…… $45M Hyatt Place, $180M MacEwan University Centre for Arts and Culture, Stantec’s 60 Storey Office tower.
Starwood accepts higher offer from Marriott for $17.8B. Trumping a bid by Chinese Anbang Insurance Group.
RioCan starts construction on 770,000SF mixed use (retail/residential) space in downtown Calgary. The Calgary market slowdown is exactly why RioCan is moving ahead with the project.
British Columbia Investment Management Corp (bcIMC) creates QuadReal Property Group to develop, acquire and manage real estate asset’s around the world – starting with bcIMC’s own $18B in Canadian assets.
The creation of QuadReal impacts GWL Realty Advisors and Bentall Kennedy. GWL was the property manager for bcIMC and Bentall Kennedy’s former president, Remco Daal, leaves to head QuadReal’s domestic Canadian operations.
KingSett Capital and Alberta Investment Management Corp (AIMco) set to acquire 50% of Scotia Plaza for well over $500M– Canada’s second largest office building from Dream Office REIT. Dream and H&R REIT had purchased the complex four years ago for $1.3B.
The Devimco project called Solar Uniquartier, a $1B mixed use development on the South Shore of Montreal is announced. Including a light rail train, the development is described as the biggest mixed property project in Quebec.
Toronto announces potential plan purchase air rights from CP Rail to develop Rail Deck Park at an estimated cost of $1B over stretch of rail yard. Shortly after a group of developers claim they already purchased the air rights years ago.
The concept of Omni-channel retail slowly creeps its way into the collective social psyche. Colliers International announced $23B of what it calls “non-retail sales” occurred in 2015 – 4.7% of all retail sales for the year.
The Canadian Federal goverhment announces $81B in infrastructure or capital works over the next decade. In total, the federal government plans to spend $180 billion in the coming decade on things like public transit, transportation, “green” infrastructure, and “social infrastructure” which would include affordable housing.