The sudden, real impact of COVID-19 can be seen in supply
chain disruptions, lower consumer confidence and reduced consumer spending.
Trying to measure the macro picture, the scope and duration
of the economic stoppage is not easy.
For those corporations who are currently sitting on surplus
capital, waiting for the bargains to surface, it is still to early to assess
how property values will be affected.
It is however, becoming clear which sector will emerge as
strongest asset class.
There is no question about the effects of the Covoid-19
pandemic on Canada’s economy.
This sudden misfortune has tested the strength of the commercial real estate industry in ways we’ve never encountered before.
So what does the future hold for tenants when this is all
Megatrends are often described as powerful and transformational
forces that can change economy, business and society over the course of
Obvious examples of this would be the use of electricity,
the creation of the automobile and in the most recent past, the adoption of the
We follow quarterly and annual trends in our markets, but
what are some of the megatrends being predicted for our economy as they may
affect commercial real estate specifically?
After reaching a record high vacancy rate of 10.3 per cent in 2016, the multi-family sector has rebounded.
The latest CMHC report, which was just released, indicates as of Oct 2019 that rate dropped to 5.7 per cent. That’s a significant decrease in just three years, 4.6 per cent to be exact, despite a rising supply of new rental units.
I promised you that I’d hold myself accountable in my Jan 2019 post and report back to you.
So, how did I do? At that time, I predicted a decline in the
overall Saskatoon Industrial vacancy rate from 6.8 per cent to 6 per cent.
That’s after a significant 2 per cent decline in 2018 and a 0.9 per cent decline to 6.8 per cent in 2019.
I’ve never professed to be a psychic, but I think looking over the trends of the past year I can safely make a few bets on the commercial real estate market for Saskatoon in 2020.
Ongoing expansion in our Saskatoon commercial retail sector has resulted in the overall supply exceeding demand.
Our 3Q19 retail market update reports the average vacancy rate has edged up to 4.6 per cent.
Let’s look at where that expansion is taking place and the
market locations where the most interesting vacancy story can be told.
The City of Saskatoon has tabled their epic discussion on a
two-year budget for 2020/2021.
While the preliminary budget released this summer projected a 3.97 per cent property tax increase overall, we can all breathe a sigh of relief because it will only be 3.7 per cent.
Wait, what the heck?! That’s still a lot!
This is not good news for anyone, especially commercial
property owners who already carry a greater tax load than their residential
The overall Saskatoon vacancy rate has been trending lower
since its peak in 2016. Our Q319 Industrial Market survey reports an overall
current vacancy rate of 6.04 per cent.
That one number does not, however, reveal the complete story.
I consider a rate under 5 per cent to reflect a relatively
How close are the eight submarkets to regaining balance?
Here’s an overview along with the factors that are important to consider surrounding that question.
Canadians have never been more in love with household pets.
According to the latest statistics from the Canadian Animal
Health Institute (CAHI), there are 8.2 million dogs and 8.3 million cats in
That’s a ten per cent increase over the past ten years,
This equates to approximately 41 per cent of all homes
having one dog, or 37 per cent having one cat.
It’s no surprise then that the pet business is booming.