We were recently called in to value and market a single
tenant property with an existing lease in place. The tenant had been granted an
option to renew during their last renewal negotiation.
I informed the owner that we would have been able to achieve
a higher price if we were able to go to the market as a vacant property.
Oh sure, everyone has ideas about how to get a space leased
But when is the last time someone made a list about how not
to get a space filled?
Wait no more, landlords, I have a list as such for you.
There are important elements to consider when reviewing a business with the intent to purchase.
Taking the time complete a thorough investigation is critical to discover the hidden facts.
As I looked into the eyes of a classroom of entrepreneurs
last week I wondered what wisdom I could impart.
My first thought was, good on you. You’ve found a passion
and you want to share it with the world!
My secondary thought was, awesome, here comes a commercial
real estate agent ready to deflate all your hopes and dreams.
But I have heard this comment before, so let’s get it out in
the open and have a chat about it.
As reported in our first quarter Saskatoon office survey, we
currently have over 400,000 SF or 16.7 per cent vacancy in our Saskatoon
downtown competitive office market.
Those numbers do include the vacancy within River
Landing’s 185,000 SF East Tower which is nearing completion.
The numbers do not however reflect 40 per cent of the
space yet to be leased within the 300,000 SF Nutrien Tower which has just
recently started construction.
Once that additional vacancy is accounted for, we will be
reporting core area vacancy in excess of 20 per cent.
Saskatoon’s office market is in transition.
The demand for new Class “A” inventory is coming from users
There are not enough new tenants entering the market and the
“flight to quality” is projected to continue.
Let’s talk solution.
It’s easy to see the bad news stories about brick and mortar
stores shuttering from the overwhelming move of consumers to e-commerce.
But I don’t think retail will ever die completely.
Rather, there is a disruption to the way we’ve known it to
be and commercial real estate landlords will have to navigate their way through
this new landscape.
While both the industrial and office sectors have displayed somewhat volatile vacancy rates over the past five years, the retail sector has consistently performed well.
Aside from Regina straying slightly over 4 per cent in 2017, both cities have otherwise achieved a number below 4 per cent since 2013.
Let’s take a closer look at each city.
Our Lady of Paris, the literal translation for Notre-Dame de
Paris, has received an outpouring of public sympathy following a devastating
fire last week.
Having seen Notre-Dame in person I can tell you it’s something
The full cost of the fire is still being tallied but I’m not
sure you can put a price on something that is nearly irreplaceable.
There are times when it is not wise to invest in commercial
Alternatively, many potential investors don’t take the plunge out of fear of the unknown and years later regret it.
Let’s look at some examples of when you’d be advised not to
Last week, Saskatchewan’s
Minister of Finance Donna Harpauer released her second budget, which projects a
$34.4-million surplus for 2019.
Thinking selfishly, I wondered:
how does this budget impact commercial real estate sale investment in our