While we saw quarter over quarter decreases throughout 2020, the drop in Saskatoon’s industrial vacancy for the last three months has exceeded my prediction for the entire current year.
The industrial sector has seen a net absorption of almost 150,000 square feet (SF).
In January, I forecasted we would be at 4.8 per cent by year end.
Our recently released Industrial Market Report recorded that rate had already dropped to 4.71 per cent. That represents over a 60-basis points reduction within one quarter.
My review of the market stats would indicate that is the largest quarterly drop we have seen in over 10 years.
Renewals in commercial leasing can be almost as important as securing a lease in the first place.
There is quite a bit of finesse to this process.
Smart companies will look beyond potential cost savings and base their decision on how to best invest in their most important asset…their employees.
I’m often asked what I believe will be the impact of the work from home transition on office occupancy.
I think it’s a matter of planning and investing where the money will be best served.
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.
My short commute route takes me past two nationally branded gas stations.
Both locations seem to be compatible in exposure and traffic count with front elevations that showcase up-to-date versions of their respective brands.
Why then is one site far more successful than the other?
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.
No one can pinpoint a precise market number.
Run for the hills If a broker represents that they know exactly what your property is worth.
Doubly so if a commercial real estate broker tours you through property and does not point out the defects, as well as the features.
So who can you trust?
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.”
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.