I promised you that I’d hold myself accountable in my Jan 2020 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 5.65 per cent per cent in 2019 to 4.8 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.
Have you ever come across a roadblock, turned to take an alternative route and found yourself up against another obstacle?
During Saskatoon’s construction season (basically anytime not designated Winter), it can be frustrating trying to find a route without some hurdle.
Likewise, commercial real estate buyers and sellers can potentially encounter endless roadblocks during the course of a transaction.
Unlike driving, though, you can anticipate these snags and potentially veer around them.
The past year has been a roller coaster for the commercial real estate industry.
Just when it looked like were gaining traction it seemed the world had another thing in store for us.
But I’m hopeful for 2021 and therefore I choose to focus on what’s in store for us.
This may sound counterintuitive as we navigate the economic impact of a pandemic.
But I’ve recently reported that our Saskatoon industrial vacancy rate actually dropped in 3Q20 demonstrating the economic resilience of this asset class.
Two industrial properties I recently brought to the market sold within one week.
There is one thing universal to commercial real estate transactions when it comes to investment buyers and sellers.
Buyers want the highest cap rate they can find; and sellers want to challenge the market with the lowest cap rate it will withstand.
Often the value of the property lies somewhere in between.
If in a negotiation you hear the Seller say: “I’ve already been offered $X sum of money,” and that amount seems somewhat unrealistic, ask if it the offer was in writing.
It’s interesting how many times the response is, “no, it was not in writing.”
Although Saskatchewan’s GDP is projected to decrease by 5.5 per cent in 2020, our latest quarterly industrial market survey shows the industrial vacancy rate in Saskatoon has dropped.
A remarkable fact when you consider the financial hit that our economy has just endured due to the pandemic.
I have a pretty wide range of expertise as a commercial real estate professional.
I’m not an engineer, electrician, or city planner, but I need to understand some working knowledge in all these areas (and others) to properly advise my clients.
An issue that comes up pretty regularly in our world is dealing with easements and encroachments on properties.
In spite of the negative economic impact of COVID-19, the sale and lease activity within our existing industrial market continues.
The vacancy rate has risen marginally by 0.12 per cent to 5.86 per cent, according to our recent Q2 market report.
Fair is a pretty relative term in the commercial real estate universe.
It depends entirely on which side of the transaction you are as to what your perception of fair may be.
In regard to commercial leasing, does fair apply to the landlord or tenant?