Calgary commercial real estate transaction activity is likely to continue upward as property values adjust to the new equilibrium and the bid-ask gap narrows, says an Avison Young report released Monday.
"While both the number of transactions and total dollar volume are down, activity levels and values are reflecting quality, not quanty," says the report.
The average price per transaction has only declined 1.5% versus the 10-year average and 2.7% versus the five-year average.
Overall transaction volume for six asset classes (office, retail, industrial, ICI land, and residential land) for 2009 was $1.42 billion from 127 sales. Dollar volume dropped 58% from 2009 and 69% from 2007.
Retail properties accounted for the largest dollar volume share (36%) in 2009 while industrial led in number of sales (28%).
"Knowledgeable, well-capitalized buyers are actively looking for quality products with long-term leases and good-quality tenants," says the report. "There are a number of positive factors within the investment market today."
For the first time in more than a decade, office deals took a backseat to retail transactions. Office transactions dropped 59% to 15 from 37 while office dollar volume dipped 70% to $377.8 million from $1.2 billion in 2008. The average sale price dropped to $25.2 million, or $254 per square foot (psf) from $33.5 million in 2008 and $39.8 million in 2007.
Office vacancy finished the year at 11.6%, compared to 6% at the end of 2008.
Meanwhile, 28 retail property transactions valued at $509 in 2009 were "highly comparable" to 28 worth $540 million in 2008.
However, Calgary's industrial market experienced one of its slowest years in the past five as 35 transactions valued at $228 million were completed. Industrial dollar volume was off the record-setting pace of 2008 and 2007 while vacancy reached 10.6% at the end of 2009, up slightly from the third quarter and up significantly from 7.8% at the end of 2008.
Monday, March 29, 2010
Thursday, March 11, 2010
NAIOP panelists to assess recovering market
How can commercial real estate developers profit from the current economic recovery?
NAIOP Vancouver members will attempt to answer that question during this month's breakfast meeting, March 18 at the Hyatt Regency.
The panel will discuss the market's current and future prospects in wake of the global economic downturn and examine ways to profit heading into the next expansion phase. It should be a lively discussion, because the Vancouver market is extremely active right now with many deals in the works, especially in retail, which made a strong comeback in the second half of 2009 following a slow start to the year.
Bill Tucker, CEO of Omicron Canada Inc., which assists developers from design to construction and offers such services as architecture and engineering, will serve as the moderator. The panelists include Gino Nonni, president of Wesgroup Properties; Ron Emerson, president of Emerson Real Estate Group and Andrew Grant, president of PCI Group.
Wesgroup and PCI Group are two of Metro Vancouver's most active and prominent developers.
For more details NAIOP's monthly breakfast, click on the link below:
http://www.naiopvcr.com/eventCalendar.aspx#e38
NAIOP Vancouver members will attempt to answer that question during this month's breakfast meeting, March 18 at the Hyatt Regency.
The panel will discuss the market's current and future prospects in wake of the global economic downturn and examine ways to profit heading into the next expansion phase. It should be a lively discussion, because the Vancouver market is extremely active right now with many deals in the works, especially in retail, which made a strong comeback in the second half of 2009 following a slow start to the year.
Bill Tucker, CEO of Omicron Canada Inc., which assists developers from design to construction and offers such services as architecture and engineering, will serve as the moderator. The panelists include Gino Nonni, president of Wesgroup Properties; Ron Emerson, president of Emerson Real Estate Group and Andrew Grant, president of PCI Group.
Wesgroup and PCI Group are two of Metro Vancouver's most active and prominent developers.
For more details NAIOP's monthly breakfast, click on the link below:
http://www.naiopvcr.com/eventCalendar.aspx#e38
Tuesday, March 9, 2010
Former Watergate investigator joins Avison Young
Legendary commercial real estate executive Stephen Leopold has returned to his Quebec roots.
Avison Young announced Tuesday that Leopold has been appointed chair of the brokerage firm's Quebec operations.
Leopold, whose career spans four decades, will advise on strategy and growth in the Quebec marketplace.
In the 1970s, he served as an investigator on U.S. Senator Sam Ervin's Watergate Committee, which investigated former president Richard Nixon. In the 1980s, Leopold, a Montreal native, acted as executive assistant to Brian Mulroney during a successful Progressive Conservative Party leadership campaign that helped him become prime minister.
Leopold's many commercial real estate career highlights include serving as vice-president of Canada's largest mortgage bank, now known as RBC Capital; forming his own firm, Montreal-based Leopold Property Consultants, which became the largest North American company to represent corporate users of space; and conceiving and creating Skymarkets in the World Trade Center. In 2002, he was appointed chairman of William B. May International in New York, which was founded in 1866 and ranks as one of North America's oldest brokerages.
Avison Young chair and CEO Mark Rose says Leopold's appointment is part of the company's aggressive expansion plan and demonstrates its increasingly significant presence in North America.
Leopold will be based in Avison Young's Montreal office.
Avison Young announced Tuesday that Leopold has been appointed chair of the brokerage firm's Quebec operations.
Leopold, whose career spans four decades, will advise on strategy and growth in the Quebec marketplace.
In the 1970s, he served as an investigator on U.S. Senator Sam Ervin's Watergate Committee, which investigated former president Richard Nixon. In the 1980s, Leopold, a Montreal native, acted as executive assistant to Brian Mulroney during a successful Progressive Conservative Party leadership campaign that helped him become prime minister.
Leopold's many commercial real estate career highlights include serving as vice-president of Canada's largest mortgage bank, now known as RBC Capital; forming his own firm, Montreal-based Leopold Property Consultants, which became the largest North American company to represent corporate users of space; and conceiving and creating Skymarkets in the World Trade Center. In 2002, he was appointed chairman of William B. May International in New York, which was founded in 1866 and ranks as one of North America's oldest brokerages.
Avison Young chair and CEO Mark Rose says Leopold's appointment is part of the company's aggressive expansion plan and demonstrates its increasingly significant presence in North America.
Leopold will be based in Avison Young's Montreal office.
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