Subscribe to the CRE Podcast and connect on social media:

Commercial Real Estate Podcast

100% Canadian. 100% Commercial.

Mastering the 2023-2024 Industrial Real Estate Market with Teresa Neto of Granite REIT

By

On this episode of the Commercial Real Estate Podcast, hosts Adam Powadiuk and Aaron Cameron sit down with Teresa Neto, Chief Financial Officer at Granite REIT, to discuss the current state of the industrial real estate market. Located in Toronto, Granite REIT’s portfolio consists of 134 investment properties representing approximately 55.9 million square feet of leasable area. During their conversation, the trio cover the challenges and opportunities in 2023-2024, Granite’s strategic approach to growth, and the necessity of balancing unsecured and secured debt.

Teresa is a seasoned CFO with an outstanding career spanning over three decades in finance and management who is actively seeking opportunities to broaden her expertise through her board position. She is also a Trustee at BSR REIT. Before that, Teresa held the CFO role for Pure Industrial Real Estate Trust, NorthWest Healthcare Properties REIT, NorthWest International Healthcare Properties REIT, KEYreit, and Retrocom Mid-Market REIT.

The CRE Podcast is powered by First National.

In partnership with Canadian Real Estate Forums.

Podcast: Play in new window | Download

Subscribe: Spotify | TuneIn | RSS | More

Apartment Tenant Survey Key Findings with Amy Erixon of Avison Young

By

Amy Erixon is welcomed for a second time on today’s episode. She is the Managing Director of Investments with Avison Young in Toronto. Each year, Amy administers the Canadian Multi-Res Tenant Rental Survey and presents it at the Toronto Real Estate Forum. She has recently gotten the results of the 2018 survey which she is here to share with us.

The survey reveals the preferences of tenants in large cities and small towns in Canada. She provides insight into key topics such as what amenities tenants are willing to pay more for and how satisfied they are with their landlord.

Topics covered include:

  • The number one feature that people said they wanted in the first year of the survey.
  • Rental features that tenants are willing to pay more for.
  • The growing participation in the survey from tenants in smaller communities.
  • The methodology of collecting information from surveys.
  • Statistics uncovered about car ownership.
  • Correlation between decision making and actual use.
  • Technology choices that allow tenants to protect their privacy.
  • Wanting an additional bedroom without necessarily wanting a bigger apartment.
  • Building apartments that share common living areas.
  • The overall satisfactions of tenants with their landlords.
  • The most popular amenities that renters want in-suite and in-building.
  • Adding questions about cannabis to the survey.

A bit about our guest…

Amy Erixon founded and heads Avison Young’s Global Investment Management practice which is active across all major and select specialty property types in Canada, the US, Mexico, Germany and UK on behalf of major institutional investors.

Prior to joining Avison, she was CEO of IGRI, a full service development and investment firm that built the first LEED certified projects across Canada in the mid 2000s. With more than 30 years of industry experience she has acquired, developed, and repositioned portfolios valued in excess of $9 billion, and completed large scale rezoning and development projects in numerous North American cities.

Amy is a member of Avison’s Executive Committee, and leads its Investment Committee. She is a founding member of both the Sustainability and Fund Governance committees of REALpac, and participates in its CEO council. She serves on the Ontario Board of the Nature Conservancy of Canada, and is a past board member of several publicly traded Canadian REITs. She is an active member of the ULI Responsible Property Investing Council, the Carbon Impact Initiative, and serves on MIT’s Educational Council. A recognized industry leader in real estate technology, greening strategies and smart cities she has advised public agencies, pensions and federal, state and local governments on issues ranging from affordable housing to ecological urbanism. With a B.S. and M.C.P. in City Planning and Real Estate Development from the Massachusetts Institute of Technology, she is an active speaker, blogger and publisher of topical reports.

Links…

Video of Amy Erixon presenting the Tenant Survey Results at the Canadian Apartment Investment Conference on September 5, 2018: Link.

Amy’s previous appearance on the CRE Podcast. Technology Disruptors in Real Estate

Amy’s LinkedIn

Podcast: Play in new window | Download

Subscribe: Spotify | TuneIn | RSS | More

Succeeding in Small Markets with Mike Bonneveld of Skyline

By

Joining us  is Mike Bonneveld, Vice President of Skyline Asset Management. They’re located in Guelph, Ontario, which is a small market for a firm of this magnitude. Their geography reflects their investment strategy; Skyline prefers to invest in small markets. Mike takes us through the reasons for this and the nuances of succeeding in this environment. We also hear about Skyline’s expansion into provinces outside Ontario and branching out into different asset classes.

Topics covered include:

  • Negative cashflow in the industry when Mike began his career and the discounted cash flow model. 
  • Sourcing deals and making connections in small markets.
  • Problems with real estate syndication.
  • The locations of Skyline’s assets and why they are small market-centric.
  • Commercial mortgage backed securities (CMBS) in the late 90s.
  • Expanding across Canada and entering small markets in other provinces.
  • Branching out beyond apartments into different asset classes.
  • The impact of online retailers being diminished in small markets.
  • Cap rates in Skyline’s markets. 
  • Partnering with developers in growing markets.
  • A look at Midland, Ontario and the smallest markets that Skyline operates in.
  • What’s coming up in 2019 for Skyline Asset Management.
  • Green energy initiatives.

A bit about our guest…

Mike Bonneveld is the Vice President of the Asset Manager. He leads the Skyline acquisitions and asset management teams, and is responsible for all acquisitions and dispositions, due diligence, and closing portfolio transactions for Skyline’s three real estate investment trusts and for Skyline Mortgage Trust.  Mike is also a Trustee of Skyline Clean Energy Trust and of Skyline Mortgage Investment Trust and has been heavily involved with new product development for the Skyline Group of Companies.  Mike has over 24 years of real estate experience. He has worked with a number of Canadian investment banks in the field of real estate corporate finance, as well as public real estate companies running acquisitions departments. He is focused on the continued growth and expansion of Skyline’s real estate portfolios and new business ventures. Mike holds an Honours BA in Urban Development from the University of Western Ontario.

Mike Bonneveld LinkedIn

CMBS episode of the CRE Podcast

Podcast: Play in new window | Download

Subscribe: Spotify | TuneIn | RSS | More

The Demise of the OMB with Jane Pepino of Aird & Berlis LLP

By

Jane Pepino joins us to talk about the reform of the Ontario Municipal Board (OMB) and the creation of the Local Planning Appeal Tribunal (LPAT). Jane is a municipal and land use planning lawyer with Aird & Berlis LLP with a career spanning 40 years. Her clients range from provincial governments, to large developers, to small landowners.

Jane speaks about how Bill 139 has dramatically changed the development process. As someone who was been following the evolution of these changes for over a decade, Jane is able to give us insight to how the policymakers got to this point. She shares why the new LPAT has been established, how it is different from the OMB, and what she believes we can expect to see from this transition.

 Topics covered include:

  • The demise of the Ontario Municipal Board (OMB).
  • Political involvement regarding planning at a municipal level.
  • The introduction of Local Planning Appeal Tribunal (LPAT).
  • What Jane’s clients are saying about the recent changes.
  • The history of events that led to these changes.
  • The effect on real estate value.
  • The timing for development and the new process at the municipality.
  • Some positive aspects of LPAT and how it can succeed.
  • The Mike Harris Red Tape Commission.
  • The new Doug Ford government.
A bit about our guest…

Jane is the founder of the firm’s Municipal and Land Use Planning group. Her practice includes providing advice on all aspects of the statutory scheme for planning, zoning and land development throughout Ontario, as well as on a broad range of municipal and provincial licensing and other regulatory matters. She advises governments, landowners and lenders on maximizing the value and utility of land in light of rapidly changing economic and political agendas. Jane’s clients include provincial, regional and local governments or agencies, large development corporations, small landowners, and citizen and special interest groups.

She regularly appears before various decision-making bodies controlling land development, including local planning committees and councils, conservation authorities, the Local Planning Appeal Tribunal (formerly the Ontario Municipal Board) and the courts.

Links:

Aird Berlis

Jane Pepino LinkedIn

Podcast: Play in new window | Download

Subscribe: Spotify | TuneIn | RSS | More

The Treasury Guy with Jason Ellis of First National Financial

By

Today we’re talking to the Treasury Guy. As the Senior Vice President and Managing Director of Capital Markets for First National, Jason Ellis is responsible for not only interest rate risk management, but the funding and securitization of commercial and residential mortgage originations.

In this episode, Jason walks us through his over 16 years of experience with First National Financial. We gain insight into the differences between CDOR (Canadian Dollar Offered Rate) and BAs (Bank Acceptances) and how they apply to mortgages. The common confusion with BAs and CDOR and the difference in points between the two.

Topics covered include:

  • The relationship between the Canada Mortgage Mond and Government of Canada Bond.
  • Importance of understanding the credit spread.
  • Controversy surrounding LIBOR.
  • Why it may be beneficial to utilize a swap rate.
  • Understanding the benefits of the Canada Mortgage bonds.
  • Semi-annual bullet bonds.
  • The vagueness between CDOR and BAs.

Jason Ellis is the Senior Vice President and Managing Director, Capital Markets for First National and is responsible for interest rate risk management, funding, and securitization for all commercial and residential mortgage origination.  Prior to joining First National in 2004, Mr. Ellis was with the Asset/Liability Management group at Manulife Financial and with RBC Dominion Securities in Toronto and New York where he traded fixed income and interest rate derivatives.  Mr. Ellis holds a BA degree from the University of Western Ontario, an MBA degree from McMaster University and is a CFA charter holder.

 

Links:

CMBS episode

Want to receive the Treasury Guy email every week? Sign-up here.

Treasury Guy articles

Jason Ellis on LinkedIn

First National Financial

Podcast: Play in new window | Download

Subscribe: Spotify | TuneIn | RSS | More

Growing a Large Portfolio with Noah Gordon of Menkes Developments

By

Growing a portfolio in a competitive market isn’t easy, even for the big players. Noah Gordon of Menkes Developments joins us to discuss managing and growing a 3 million square foot commercial portfolio in the GTA. Some of the topics covered include:

  • The history of Menkes Developments.
  • The profitability of spec build industrial.
  • Losing Target as a tenant.
  • What’s important to best-in-class users.
  • Why the GTA has low industrial lease rates.
  • What differentiates fulfilment centres.
  • The rise of cross-dock facilities.
  • Buying existing product vs building new.
  • Amenities in newly constructed office towers.
  • On market vs off market opportunities (also discussed in the Sean Fleming episode).
  • Having faith in your development numbers (also discussed in John English episode).
  • The viability of office and industrial condo conversions.
  • The “One Size Fits Most” strategy.

 

In the News…

Canada’s Biggest Cities Move to Regulate Airbnb, But it’s No Easy Task

 

A bit about our guest…..

Noah is the Director, Portfolio Management for Menkes Developments Ltd (website). He is responsible for managing assets in the company’s managed services portfolio as well as commercial acquisitions and development.

 

His background includes working in real estate asset management, private equity and investment banking. Previously, he has held positions with CIBC World Markets, Talon Asset Management and RioCan Real Estate Investment Trust.

 

Noah received a Bachelor of Arts (Business Administration) from York University and an MBA from the Richard Ivey School of Business. He is a LEED AP. Noah is a member of the Society of Industrial and Office Realtors (SIOR) and sits on the organization’s board. He is also a member of the National Association of Industrial and Office Properties (NAIOP) and recipient of the organization’s Developing Leader Award for 2016.

 

Noah is also involved in the community and is a member of the Jewish National Fund Future Executive and is an external champion for the Toronto Pearson Airport Propeller Project.

Noah Gordon LinkedIn

 

Podcast: Play in new window | Download

Subscribe: Spotify | TuneIn | RSS | More

Technology Disruptors In Real Estate with Amy Erixon of Avison Young

By

Technology is radically changing commercial real estate at a pace that is rapidly accelerating. We discuss what’s on the horizon with Amy Erixon of Avison Young:

 

  • 3-D printers used in construction.
  • 4-D printing (this will blow your mind).
  • Future proofing your development.
  • Cyber security and hacking building systems.
  • Autonomous vehicles.
  • Artificial intelligence and data collection to improve building performance.
  • Business continuity.
  • The adoption rate of smart homes.
  • Augmented reality (AR), virtual reality (VR) and computer-aided design (CAD).
  • The building sector’s large contribution to global warming.
  • Selling condos with virtual reality.
  • Why Amy doesn’t like the term “technology disruption”.
  • Drones in real estate.

 

In the news…

‘Banner year’ ahead for Ottawa CRE transactions: CBRE

 

A bit about our guest….

An industry expert in real estate technology, greening strategies and smart cities, Amy Erixon has advised public agencies, pensions and federal, state and local governments on issues ranging from affordable housing to ecological urbanism. She leads Avison Young’s Global Investment Management practice, which is active across all major and select specialty property types. Prior to joining Avison Young, she was CEO of IGRI, a full-service development and investment firm that built the first LEED-certified projects across Canada in the mid 2000s. With more than 35 years of industry experience, she has acquired, developed and repositioned portfolios valued in excess of $9 billion, and completed large-scale rezoning and development projects in numerous North American cities. Amy Erixon sits on the Ontario Board of the Nature Conservancy of Canada and Avison Young’s Executive Committee.

 

A graduate of MIT in city planning and real estate development, she is an active speaker, blogger and publisher of topical reports and white papers. Follow her on LinkedIn, Twitter @ErixonAmy, and YouTube. Her blog can be found at Blog.AvisonYoung.com

Podcast: Play in new window | Download

Subscribe: Spotify | TuneIn | RSS | More

Dirty Properties with Riyaz Punjani of S2S Environmental

By

Contamination can destroy a property’s value, delay development and kill a loan. Your best protection? An environmental consulting firm. We’ve invited Riyaz Punjani of S2S Environmental to discuss the finer points of:

  • Less obvious signs of potential contamination.
  • Managing the cost of remediation.
  • How lenders view environmental issues.
  • National tenants and their requirements for clean locations.
  • Asbestos risk in demolition.
  • How technology has improved the industry as a whole.
  • What a record of site condition is.
  • The differences in environmental standards between the provinces.
  • Why you want a Phase I.
  • The role of the Canadian Standards Association – a federal guideline for all environmental site assessments.
  • Migration of contamination and the legal and financial consequences.
  • The worst environmental disaster that Riyaz has ever encountered.
  • How to unlock the value in Toronto’s highly contaminated Port Lands.
  • Energy audits, loans and government rebates.
  • Energy savings as an investment.

 

In the news….

Wall Street Has Found Its Next Big Short in U.S, Credit Market.

For more information on CMBS in Canada, check out  Episode #5

Adam ends his adventure in small market land investment.

 

A bit about our guest…

Riyaz Punjani is the Senior Consultant and founding partner of S2S Environmental Inc. During his career of more than 25 years in environmental consulting, Mr. Punjani provides strategic advice and due diligence services to stakeholders in the real estate markets including Phase I and II Environmental Site Assessments and Property Condition Assessment. His passion in providing straight forward, practical and business-minded solutions to today’s environmental industry makes Mr. Punjani is a sought after speaker and consultant to both public and private organizations looking to minimize environmental risk. Riyaz and his team of environmental experts provide services across Canada and have been recognized as a leader in areas of environmental due diligence for acquisitions and financing of industrial, commercial and multi-residential properties. rpunjani@s2se.com www.s2se.com

 

Podcast: Play in new window | Download

Subscribe: Spotify | TuneIn | RSS | More

Big Data in Real Estate with Matt Popow of CoStar

By

CoStar is relatively new to Canada but a giant in commercial real estate research. In 2015 alone, the company’s 1,600 researchers made more than 12 million calls to verify critical property information and drove more than two million miles to accumulate on-site research data. Every commercial real estate practitioner can benefit from the data they’re bringing to the Canadian market. In this episode we discuss:

 

  • CoStar’s background and entry into Canada.
  • The scope of their research team.
  • The most difficult data to collect.
  • Their expansion plans within Canada.
  • The mobile platform.
  • The major U.S. and Canadian sub-markets they cover.

We also have a discussion about two markets covered by CoStar, Toronto and Vancouver. Topics include:

  • Supply or demand?
  • Foreign buyer’s tax.
  • The introduction of multi floor industrial and retail developments.
  • Urban sprawl.
  • Public transit.
  • Intensification in clusters.
  • Proposed changes to rent control for Post 1991 built apartments.
In the news….

 

The Top Three Tweets from the Vancouver Real Estate Forum

A bit about our guest….

 

Matt Popow is a Senior Account Executive at CoStar Group Canada, headquartered in downtown Toronto ,where he is responsible for sourcing and managing the sale of CoStar Group’s flagship products, CoStar Suite and CoStar Market Analytics. He works closely with Canada’s largest commercial brokerages, lenders and property owners to help them gain deep insights into the commercial real estate market. Understanding tenant movement, space absorption benchmarking to assess supply and demand, identifying market indicators and opportunities to develop new business are all in the scope of his focus. Prior to joining CoStar Group Canada in 2015, he was a Vice President and commercial real estate broker that managed investment sales transactions of retail, office and industrial assets while also completing land density and highest/best use studies for commercial developers in addition to securing facilities for corporate space users.

Matt Popow LinkedIn

Podcast: Play in new window | Download

Subscribe: Spotify | TuneIn | RSS | More

Ontario’s Fair Housing Plan with Jim Murphy of FRPO

By

Ontario apartment owners are facing a slew of changes from recent federal, provincial and municipal initiatives. At the federal level, CMHC has changed a number of their policies. Provincially we’ve been introduced to Ontario’s Fair Housing Plan. Toronto is examining a landlord licensing system. Are they positive or negative for apartment investors and builders? We asked Jim Murphy of the Federation of Rental-Housing Providers of Ontario (FRPO) to join us and try to answer that question. In this episode we discuss:

CMHC policy changes 

  • Higher LTV and recourse.
  • Construction and rental achievement hold backs.
  • The new insurance premium structure. 
  • Accepting bulk leases. 
  • Furnished suites. 
  • Allowable retail component in an apartment building.

Ontario’s Fair Housing Plan

  • The history of the 1991 rent control exemption, starting with Bob Rae and the NDP.
  • The media sensationalizing dramatic rent increases.
  • Alternative solutions to work within the new changes.
  • The difference between a speculation tax and a foreign buyers tax.
  • The impact on builders and investor certainty. 
  • How this impacts the condo rental market.
  • Standard lease agreements for apartments .
  • Building condos vs apartments from the developers perspective. 
  • Development charge rebates.
  • Taxation of vacant land to encourage development. 
  • The dangers of vacancy control.
  • The balance between protecting tenant’s rights and incentivizing developers and apartment owners. 

We end off the show discussing the proposed Toronto landlord licensing system.

In the News we discuss the stabilization of the damage to the Calgary office market.

A bit about our guest…

Jim Murphy is the President and CEO of 3,200 member Federation of Rental-housing providers of Ontario (FRPO).  FRPO’s members include owners, builders and mangers of over 350,000 rental homes in Ontario.

Prior to joining FRPO, Jim was CEO of the Insurance Brokers Association of Ontario (IBAO) and President and CEO of the Canadian Association of Accredited Mortgage Professionals (CAAMP) now Mortgage Professionals Canada.

Jim also served as Director of Government Relations for the greater Toronto Home Builders Association (GTHBA) now Building Industry Land Development (BILD).  Jim also served at Queen’s Park serving the Minister of Municipal Affairs and Housing (Hon Al Leach) and the Minister of Economic Development Trade and Tourism (Hon Al Paladini)

Jim holds a Bachelor of Environmental Studies in Urban and Regional Planning form the University of Waterloo and a Masters of Arts in Public Policy and Public Administration from the University of Toronto.

Jim Murphy FRPO

 

Podcast: Play in new window | Download

Subscribe: Spotify | TuneIn | RSS | More