Value is in the eye of the CRE beholder

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.

Continue Reading

Verbal Offer is No Offer

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.”

Continue Reading

The line is drawn between easements & encroachments

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.

Continue Reading

The mall needs to be okay

I’ve not been shy about my love affair with the traditional interior mall as a retail institution.

While skeptics have been predicting their inevitable death, the interior mall seems to innovate and survive in spite of its critics.

But could the disruption of the Covid-19 pandemic finally have done them in?

Continue Reading

The oxymoron of office culture for remote workers

The dialogue is starting around this latest experiment in the office sector.

We’ve seen other experiments in recent years such as the open office concept and co-working concept. COVID-19 has accelerated a work-from-home (WFH) trial that might otherwise have taken years to duplicate.

Will WFH emerge as the disruptor that some are suggesting?  

Will organizations be able to maintain culture within, while the experiment is underway?

Continue Reading

Fair is fair

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?

Continue Reading

Don’t miss this critical element in CRE investment purchase

If you’ve purchased a commercial or residential condo, you would have encountered an estoppel certificate. 

There are many reasons for obtaining a condominium estoppel. They provide insight into the project reserve fund, illustrate if there are any unpaid contributions or arrears and determine if its bylaws and policies are in good standing.

Estoppels are just one of many due diligence items I encourage buyers to ask for.

The information I’m discussing here is applicable only to single and multi-tenant investments (excluding multi-family rentals).

Let’s look at the importance of obtaining estoppel certificate(s) during your investigation of an investment property.

Continue Reading

New challenges await social distancing office users

Despite patting ourselves on the back for flattening the curve in Saskatchewan, we flatlanders are not out of the woods yet.

In the anticipated build up to employees returning to their traditional workspaces, stringent protocols will be in place for office users in particular.

A return to our previous normal practice seems a long time away and some speculators predict the Covid-19 pandemic will change office interaction permanently.

Continue Reading

May the Fourth be with you

Last week Saskatchewan Premier Scott Moe announced a phased in plan to reopen the province for business in the wake of Covid-19.

While some people are saying it is too soon, most agree that it has been long enough.

So how will this unfold for commercial real estate tenants?

Continue Reading

Industrial will evolve as the preferred CRE asset class

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 too early to assess how property values will be affected.

It is however, becoming clear which sector will emerge as strongest asset class.

Continue Reading