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.
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
I purchased my second single family home in 1979. It was located at the end of a quiet cul-de-sac in a good neighborhood.
The downside was it backed onto a retail strip mall. That wasn’t a concern for me however because everything within that retail corridor was one storey.
Within a year of owning the home, it was announced that a five-storey office building would be constructed overlooking my rear yard.
I immediately sold the property.
Even though the project was public knowledge, I believed it would be easier to sell before it could be seen that the windows in that towering structure would have a full view of my yard.
From that early, first hand experience I can relate to
homeowners that are suddenly faced with a project that significantly impacts
the value of their home.
The Regina Leader-Post published an article in 2008 with Stu
Rathwell, a franchise partner in the new Regina’s Chili’s Grill and & Bar.
Stu shared that his Saskatoon location would be open by that
His optimism about the Chili’s brand was hopeful; if things
took off as he was hoping, he predicted people could expect to see several more
open across the province.
Fast forward to 2019.
If you happened upon Saskatoon’s Preston Crossing the last
week of February, you may have caught sight of Stu’s dream deflating right before
Entrepreneurs Louis and Shaol Pozez could not anticipate 63 years ago that the demise of their discount shoe business would be taken down by a network of computers
This isn’t a story from the rejected piles of Terminator franchise spinoffs; this is a reality.
The Pozez’ conception that grew into Payless ShoeSource brick and mortar stores across the U.S. and Canada are officially shuttering.
Their disregard for advancing online sales, in addition to highly leveraged assets, proved fatal.
I thought twice about writing this post!
Does it risk raising the question with the city
administrators: are our Saskatoon and Regina commercial property taxes too low?
Or… does it showcase just one more of the many benefits of
setting up shop in one of our two major Saskatchewan cities?
In an earlier post I referenced the 2018
Canadian Property Tax Rate Benchmark Report released by Altus Group, and
supporting partner REALPAC with a focus on the commercial to residential tax
There were substantial changes to the commercial real estate
landscape in Saskatoon as we close out 2018.
I think it’s is a story of renewal and growth, would you
The City of Saskatoon has officially put out a tender to lease the Farmers’ Market building in Riversdale.
At current, the facility is leased to and operated by the Saskatoon Farmers’ Market Co-operative Ltd.
In their original agreement to lease the property, they outlined their plans to expand the market hours over time.
That vision has only grown to three advertised full market days. The City is ready to let someone else take a run at it.