Commercial 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)
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?
Corporate Space Planning & Relocation Advice 