Altus Group has recently released its 2022 “Canadian Property Tax Rate Benchmark Report,” which provides some interesting stats.
Although Saskatoon and Regina both raised commercial tax rates, with Saskatoon increasing by 3.3% to $16.15 and Regina by 2.74% to $17.14, Saskatchewan’s costs are far below the national average.
The raw data for our 3Q22 market reports have been compiled, and the findings are fascinating.
The four main categories, downtown and suburban office, retail and industrial sectors, have seen positive absorption since the last quarter.
Oil and gas prices will continue to drive economic growth in Saskatchewan and Alberta through 2024, according to the Conference Board. Saskatchewan will also benefit from higher prices for commodities such as wheat and potash.
Saskatchewan is reported to lead our country in 2022 with a growth of 7.6 per cent.
Patience is a virtue for multi-tenant investment sales final adjustments
All parties to a sale (brokers, property managers, buyers, sellers, and lawyers) must be prepared for the process necessary to calculate occupancy cost adjustments at sale closing.
If you’re selling multi-tenant commercial real estate, the final statement of adjustments that your lawyer provides could take a couple of months to complete.
The lack of inventory in Saskatoon’s industrial sector is further stymied by the type of properties that are available.
Many industrial users have needs that simply can’t be met by older product.
As brokers, landowners engage us to provide an opinion of value on development land.
At the same time, those landowners often offer, what is believed to be, comparable land sales within close proximity to the subject property.
What they may not realize is that there could be a whole back story to that supposed comparable land sale that render it incompatible as a sale comp.
There are many working parts in offering to purchase or lease a commercial real estate property.
Determining the strategy you will employ in a negotiation, however, can have a big bearing on the outcome.
There has never been a better time to cash-out of your Saskatchewan industrial and retail commercial real estate.
While there is currently demand from owner occupants for office buildings, that demand however is not the same for multi-tenant office due to typically higher vacancy in that particular asset class.
Insurance is a difficult line item to justify sometimes until you need it.
Do I have enough? Can I actually access it if I need to?
What happens if I just don’t have any?
It’s interesting to see the similarity that has been revealed between Regina and Saskatoon through ICR’s latest Market Update.
The difference in vacancy rates between the two cities, in this sector are less than 10 basis points.
You must go back to 2010 to find similar strength in absorption of vacant industrial property.