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.
Although Saskatchewan’s GDP is projected to decrease by 5.5 per cent in 2020, our latest quarterly industrial market survey shows the industrial vacancy rate in Saskatoon has dropped.
A remarkable fact when you consider the financial hit that our economy has just endured due to the pandemic.
There has been a looming need for change, to provide a safe Saskatoon city centre.
What’s my definition of a digital detox? To me it means no screen time.
Screens include my computers, laptop, smart phone and televisions. I happened to grow up before the video game craze so that one’s not on my list.
Studies show that much of society today is addicted to digital. I could very well be included in that group!
I’ve experimented with withdrawing from use of electronics for a day in the past; I decided to make it a once a week, permanent habit early this year.
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?
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?
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.
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.
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?
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.