Commerical Real Estate News
Will One of Blackberry’s Commercial Properties Be the Site of Your Next Corporate Expansion?
Considering moving your business to a new commercial facility? Well, if you had your sights on the Mississauga, Waterloo or Ottawa regions, one of Blackberry’s commercial properties might just be right for your business.
Last week, Blackberry announced that it is planning to sell off their 19 Canadian commercial properties totalling over 3-million square feet of commercial space. What does that mean for other Canadian businesses?
Well it may change competition in the marketplace as businesses, both domestic and foreign, will now have the opportunity to increase their presence in the Canadian market place.
Companies that , at one time or other, wanted to move into the Waterloo, Mississauga or Ottawa commercial properties that Blackberry originally purchased will now have their chance to claim those properties for their own corporate expansions.
But who is going to jump at the chance? Will other educational institutions follow the example of the University of Waterloo, which bought four of the 19 commercial properties to expand their campus? Will property management companies purchase the buildings and lease the space out to small or medium-sized companies. Will other Canadian companies band together to purchase these commercial properties? Will foreign investors jump at the chance to own some of the property holdings?
Regardless of the mix of potential buyers, one thing is certain – Blackberry remains committed to maintaining its Canadian presence.
Though Blackberry is selling off their commercial properties, the company plans to lease back some of the space needed for their corporate operations. They are already leasing back space in two of the buildings that the University of Waterloo has purchased.
CBRE is handling the sale and leasing of the properties. Transactions are expected to happen between now and the spring 2014.
So, with all this in mind, I ask: Looking for a new location to expand your business?
‘Commercial Property for Sale’ Demand Drives Anticipated Double-Digit Increase in Vacant Leased Office Space in GTA by 2016
Major real estate companies agree—the current demand for commercial property for sale will definitely impact vacancy rates of leased commercial property within the GTA over the next three to four years.
A report by commercial leasing company, Colliers International, notes that demand and vacancy rates for leased commercial property, particularly office space in the GTA region, has been steadily decreasing over the last two quarters of 2013, so much so that the vacancy rates in Toronto’s downtown core hit an all-time low of 3.9 percent in the third quarter of 2013 (1.2 percent less than last year). At the same time, a recent annual commercial report from RE/MAX noted that demand for industrial buildings and retail storefronts for sale along the subway and other major transit lines has remained unprecedented despite the lack of inventory of such commercial property for sale.
Such demand activity for commercial property for sale seems to be driven primarily by the arrival of smaller investors, young professionals and end users taking advantage of the low interest rates and healthy rates of return and looking to buy shops and other commercial properties rather than rent, because they know the rental market remains so tight and vacancy rates are so low in Toronto that, according to commercial realtor Michael Davidson, they could easily lease out units above a store for top dollar.
“There’s a lot of money chasing a limited supply of commercial product, be it multi-unit residential, industrial, or retail storefront,” says Gurinder Sandhu, Executive Vice President, Regional Director, RE/MAX Ontario-Atlantic Canada. “In some areas of the country, we’re seeing unsolicited offers on product not available for sale—often well above market value.”1
Currently, in response to the current commercial property demands, the City of Toronto has more than 7.3 million square feet of new commercial property space under construction, largely in fast-growing areas such as the new South Core between Union Station and Lake Ontario.
“But there’s no doubt that tenants are keenly anticipating the coming glut of new office space and “trying to hit the opportunistic window” by signing leases now that only last until 2016 or 2017 so they are more firmly in the driver’s seat and able to negotiate renewals or moves with incentives or lower rates as vacancy rates are likely to soar close to double digits”. Susan Pigg, Business Reporter, Toronto Star 2
References:
1 RE/MAX Media Newsroom, “Tight commercial inventory levels impede sales activity in most major Canadian real estate markets, says RE/MAX”, Mississauga October 29, 2013,
2 Susan Pigg Business Reporter, Toronto Star, “Glut in office space to hit GTA: report”, October 9, 2013 (Reposted October 29, 2013)
3 Susan Pigg Business Reporter, Toronto Star, “Commercial real estate a hot commodity in GTA”, October 29, 2013
4 Colliers International, “GTA Industrial Report for Fall 2013”
Related articles
- Glut in office space to hit GTA: report (thestar.com)
- Vacancy rates for GTA office space to soar: report (rexdaleclc.wordpress.com)
New Corporate Office Developments in Toronto
Last November 2012, Google unveiled its new global headquarters in Canada— 89,000-sq.ft. space on Richmond St. The opening of its huge new office building for its more than 400 employees (or Googlers, as the firm would call them) helps to prove that Toronto is one of the busiest and most exciting places to live and work.
Coca-Cola, another mammoth brand, opened its Canadian headquarters in downtown Toronto last April on King St. E., atop the same building as the Toronto Sun. Before this, Coke Canada’s offices were located in Thorncliffe Park for the past 50 years.
Of the many companies setting up their office in Toronto, one of the most talked about is Twitter Inc. Recent news revealed that the San Francisco-based networking site is planning to open Twitter Canada and has in fact named its first employee: managing director Kirstine Stewart. Other career positions have also opened up, like account executive and account manager. It’s not surprising that Twitter Inc chose Toronto, where highly educated “Echo Boomers”, those between the ages of 20 to 39, are moving in to build their careers.
Another talked about office development is a 17-storey office tower at the east end of 351 King East. To be named the King East Centre, the building is a 500,000 sq. ft. office space that will have its first occupancy sometime in 2016. This is in addition to one of the latest office developments to break ground in One York Street last January: the One York. It will be 35 storeys high, and will have a total of 794,358 square feet of space.
For both office towers in the works, lead tenant status is still available—although office spaces are quickly being leased out to companies who want to be at the center of the accelerated urban growth in Toronto.
If your company is planning on moving to one of the many new office towers currently under construction in downtown Toronto, your first step should be to contact a reputable and talented corporate real estate agent. If you need assistance with finding a Toronto corporate real estate agent, we will be happy to recommend one to suit your needs. If you already have the agent that you feel confident with, your next step should be to secure a corporate relocation and renovation specialist to help you in every aspect of your move. Again, call us! We are here to help.
CanTech: Canadian Real Estate Technology Conference Arrives in Toronto
One week after the Green Real Estate Forum, CanTech, the single-day Canadian Real Estate Technology Conference, is taking place on April 18th at the Metro Toronto Convention Centre (MTCC).
CanTech will provide information and a platform to discuss the major technological advances, trends, issues and opportunities in regards to Canadian commercial real estate. According to the CanTech website,
“This focused program is designed to meet the needs of executives who are responsible for their organization’s technological strategies, as well as individuals who rely on technology for: Asset Management, Leasing / Brokerage, Financing, Development, Investment, Operations, Marketing, Social Media, Risk Management and Data Analytics. All production functions in commercial real estate are directly influenced by technology and proper use of this increases the efficiency of the factors of production.”
There will be a plethora of respected speakers at this conference, an opportunity to obtain RECO Continuing Education (CE) Credits and other educational credits for those who qualify, and plenty of opportunity for discussion and networking.
Here is a copy of the CanTech brochure and a complete program overview.
Will your firm be making an appearance at CanTech on April 18th, 2013?
Green Real Estate Forum, April 11th, 2013
Toronto’s Green Real Estate Forum is back at the Metro Toronto Convention Centre (MTCC) for the ninth consecutive year.
The goal of the forum is to provide ample opportunity for discussion on the economics, benefits, strategies and the viability of upgrading and developing green buildings. According to their website, the organizers of this event promise “one of the most comprehensive programs for real estate owners and investors offered in Canada on this subject.”
Here is a full program overview.
RECO Continuing Education (CE) Credits will be provided for those who qualify, as well as other educational credits. For more information, visit the Green Real Estate Forum website.
Is anyone from your corporate real estate office planning to attend the Green Real Estate Forum on April 11th? Do you believe there are major benefits to greening commercial space?
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