Commercial Real Estate News Toronto – August 2010

The market has been busy for me over August.  I didn’t get to take a holiday!  If you would like additional information on the Toronto commercial real estate market reach out to me.

Artis REIT targets expansion in Toronto area – Artis REIT

Artis REIT is moving east, buying C$116.5 million ($114 million) worth of Toronto real estate after years of focusing nearly exclusively on Western Canada. Winnipeg, Manitoba-based Artis is part of a wave of Canadian real estate investment trusts targeting acquisitions this year, betting on Canada’s economic recovery and renewed demand for office space.

Reuters Wed Aug 04 2010 – Canada News Wire – Globe and Mail

Whiterock REIT’s Q2 operating profits rise – Whiterock REIT – WRK.UN-T

Whiterock REIT, a Toronto-based property owner, reports its operating profits in the second quarter rose to nearly $9.6 million from $9 million. The company said Tuesday its funds from operations, a widely used measure that reflects the financial health of publicly traded real estate companies, jumped to just over $6 million or 41 cents a diluted unit from $3.4 million or 39 cents.

Winnipeg Free Press Wed Aug 04 2010 – Canada News Wire

TREB Commercial REALTORS® Report Monthly Commercial Figures

In July, TREB Commercial Members reported 724,590 square feet of leased space – a 132 per cent increase from the 312,771 square feet of leased space recorded in July of 2009. By category, TREB Commercial Members leased 644,830 square feet of industrial space, up 176 per cent over last July’s total of 233,342 square feet. In addition, they leased 47,406 square feet of commercial space, up 20 per cent over July 2009’s 39,575 figure.

Market Wire Mon Aug 09 2010

$3.5-million, 125 metre flagpole planned for North York

Councillor Giorgio Mammoliti and one of his struggling North York neighbourhoods are on the verge of building the tallest flagstaff in North America. The 125-metre pole would bear a Canadian flag the size of a football field. Mr. Mammoliti and the Emery Village BIA approved in May a one-time special levy that will see the BIA’s 2,500 business owners pay the full $3.5-million cost of the flagpole.

Globe and Mail Fri Aug 13 2010

HST has greater impact than interest rates, says survey

A survey conducted by Royal LePage Real Estate Services says that people in Ontario and B. C. have misconceptions about how the Harmonized Sales Tax (HST) affects real estate transactions. When respondents were asked to provide examples of comments heard from buyers and sellers regarding the HST and its effect on the housing market, almost half of the comments indicated that confusion about HST remains more than one month after its introduction.

REM Online Mon Aug 16 2010

Commercial real estate rebounds in first half of 2010

The Canadian commercial real estate market rebounded sharply in the first half of 2010, with the value of deals increasing by 60 per cent as the debt markets recovered from the recession. CB Richard Ellis said in its Midyear National Investment Report that there were $7.8-billion of deals done from January to June, compared to $4.9-billion during the same period in 2009.

Globe and Mail Wed Aug 18 2010 – Financial Post – Market Wire

Office-Leasing Rebound Could Be Deceiving

Companies that sat on the sidelines during the darkest days of the economic downturn are increasingly making leasing commitments. In the 12 months that ended June 30, office tenants signed 161.3 million square feet in leases nationwide, according to Studley, a commercial real-estate brokerage firm. That is a 5.7% increase over the 12-month period ended in March.

Wall St. Journal Wed Aug 18 2010

Connect bike lanes through downtown, cyclist says

It’s a chance to finish an “incoherent patchwork” of bike lanes downtown, says a passionate cycling advocate, who is bringing a petition to do that to Toronto’s public works and infrastructure committee Wednesday. Alan Heisey wants city council to ensure there’s at least one more continuous north-south route between Bloor St. and the lake, and at least one complete east-west route south of Bloor St. for downtown cyclists.

Toronto Star Wed Aug 18 2010

Waterfront Toronto unveils plan for 1,700 condos, 2,400 jobs – Waterfront Toronto

Waterfront Toronto unveiled plans to build a massive $800 million neighbourhood Thursday. Developers have dubbed the new neighbourhood Bayside. Waterfront Toronto chose Hines, an American development company based in Houston, to build the project from a field of four finalists. Plans include 1,700 condominiums, office space for 2,400 jobs, a boardwalk and public access to a green roof overlooking the water.

Toronto Star Fri Aug 20 2010 – National Post – Globe and Mail

Combining the CNE and Ontario Place: Urban renewal on the lake

Once again we are about to experience the annual hand-wringing about the Ex: What will attendance be? Is it still relevant? And could this valuable site be better used? Coincidently, the province has just issued an RFI (Request for Expressions of Interest) seeking new ideas for its fading 39-year-old neighbour, Ontario Place.

Toronto Star Fri Aug 20 2010

Commercial real estate investment up in Toronto – Avison Young

Commercial real estate investment in Toronto in the first half of the year well exceeded its 2009 totals, new data from brokerage firm Avison Young shows, however the impact of the HST introduced in July remains to be seen. Overall investments in the Greater Toronto Area over the first six months of the year totalled $3.5-billion, more than double the $1.4-billion invested in the first half of 2009.

Financial Post Fri Aug 20 2010 – Canada News Wire

HST blamed for drop in sales across the country

Housing sales were down 30% in July from a year ago, and the Canadian Real Estate Association blames the drop on the new harmonized sales tax in Ontario and British Columbia. The Ottawa-based group, which represents 100 real estate boards across the country, said July sales fell 6.8% on a seasonally adjusted basis from the previous month, a decline “almost entirely the result of fewer sales in B.C. and Ontario.

Financial Post Sun Aug 22 2010

Goodbye office, hello ‘desk on demand’

Few rooms invite envy like your boss’s corner office. It has a desk that’s bigger than your cubicle, a great view and a nameplate on the door. The room is ridiculously big, and that’s the point – the extra space marks her status. One might expect a traditional hierarchy of offices at the Wellington St. W. offices of IBM, in the classic TD Waterhouse Tower.

Toronto Star Fri Aug 27 2010

TTC meets to discuss new head office

The Toronto Transit Commission will decide at a special meeting Friday whether to proceed with the lease of a new headquarters at Yonge St. and York Mills Rd. The new office space, being developed by Build Toronto, the city’s arm’s-length real estate corporation, would be located on TTC property and replace the transit agency’s Davisville headquarters.

Toronto Star Fri Aug 27 2010

Worldwide Parking Cost Report – Colliers International

And you thought Toronto was expensive… check out London!

Toronto Commercial Real Estate News – August 2010 – Business confidence improving as Greater Toronto Area office market

Toronto council approves Lawrence Heights redevelopment

Proud Lawrence Heights resident Marian Mohamud is thrilled “The Jungle” will soon be tamed. The 20-year revitalization, similar to one that is now transforming Regent Park, is moving ahead despite strong opposition from some north-end neighbours who argue the injection of up to 16,000 new residents will overwhelm the Lawrence Ave.-Allen Rd. area.

Toronto Star Wed Jul 07 2010

Ghostly Toronto structure could get new lease on life

It’s loomed for years overlooking Spadina Avenue like a ghostly, gabled reminder of Toronto’s Victorian past. But the 135-year-old Gothic Revival structure at 1 Spadina Cres. – just north of College Street – could soon undergo an ambitious renovation and expansion, according to a plan actively being considered by the University of Toronto and the John H. Daniels faculty of architecture and landscape design.

Globe and Mail Mon Jul 12 2010

Yahoo Pairs with Zillow on Real Estate Listings

In a bid to beef up its home-buying features and lure local advertisers, Yahoo! is adding home listings from Zillow, an online real estate service that lets users research the value of homes. Pairing with Zillow.com boosts Yahoo’s home listings to about 4 million from 3 million and gives the company a bigger slice of the ad market for smaller-sized businesses.

Business Week Mon Jul 12 2010 – Wall St. Journal

TTC must capitalize on its real estate

If the Toronto City Summit Alliance’s recent roundtable on funding the future of transit is any indication, Toronto is doomed to transit stagnation. Promoted as a ‘bold’ search for solutions, attendees discussed the merits of road tolls, congestion charges, commercial parking levies or increased property taxes — far removed from anything truly bold.

National Post Fri Jul 16 2010

Complete makeover for Ontario Place

Ontario Place, a fading Toronto icon, will soon be torn down and replaced by a newer version to restore the park to its former glory. The provincial Crown corporation has put out a formal request for ideas to completely redevelop its 39-hectare (96-acre) space along Lake Ontario, which will probably result in the removal of features, such as the once groundbreaking Cinesphere.

Toronto Star Fri Jul 16 2010

Spirit of Maple Leaf Gardens lives on in reno

With eight months left in the $60-million Ryerson University renovation of the upper portion of Maple Leaf Gardens, new sketches of the plans show an effort to keep the spirit of the former hockey shrine in the new, scaled-down rink. Ryerson, which is sharing the building with its new owner, Loblaw Cos. Ltd., is planning a student athletic centre for the building’s new second storey, with the rink on the floor above.

Globe and Mail Fri Jul 23 2010

National office vacancy rates hit five-year high – Cushman & Wakefield

The national office vacancy rate reached 9% in the second quarter of 2010, continuing a trend that started in the fourth quarter of 2008. This rate was up from 8.8% in the first quarter and was its highest level since the second quarter of 2005. According to the most recent numbers from Cushman & Wakefield, the increase was largely due to the addition of 1.5 million square feet of new supply.

Daily Commercial News Wed Jul 28 2010

CBRE upbeat on global recovery – CB Richard Ellis – CBG-N

CB Richard Ellis Group, the world’s largest real estate consultancy, has reported the strongest growth in revenue and earnings since 2007 as it has benefited from the global recovery in commercial property activity. CBRE, whose main business is advising on the acquisition and leasing of commercial property around the world, has been one of the main beneficiaries of improving market conditions.

Financial Times Wed Jul 28 2010 – LA Time – Reuters

Business confidence improving as Greater Toronto Area office market – Avison Young

Despite continued rising vacancy levels in the Greater Toronto Area (GTA) office market, strengthening business confidence has led to a surge in tenant leasing activity – especially in Downtown Toronto. Though the market remains in the red, a shrinking new-supply pipeline and limited quality space alternatives for larger tenants may alter fundamentals in the coming quarters.

Canada News Wire Wed Jul 28 2010

Ghostly Spadina structure could get new lease on life

Full Article – The Globe and Mail

“The idea we’re exploring is a visual arts, architecture and urbanism complex,” Dean Richard Sommer said in an interview. “We see this site as a kind of bridge from the university to the city and this great artery of Spadina.”

Construction on island tunnel to start in 2011 – Porter Toronto

Full Article – National Post

The Toronto Port Authority says it will break ground in early 2011 on a $45-million pedestrian tunnel, linking the Western Gap ferry docks at the foot of Bathurst Street to the Billy Bishop Toronto City Centre Airport.

Complete makeover for Ontario Place

Province puts out formal request for ideas to recreate one-time “jewel along the waterfront”

Full Article – Toronto Star

Ontario Place, a fading Toronto icon, will soon be torn down and replaced by a newer version to restore the park to its former glory.

The provincial Crown corporation has put out a formal request for ideas to completely redevelop its 39-hectare (96-acre) space along Lake Ontario, which will probably result in the removal of features, such as the once groundbreaking Cinesphere, that have grown tired.

Commercial Real Estate News – Toronto 1/2 July 2010

OfficeSearchToronto.com

CB Richard Ellis Group, Earns Frost & Sullivan’s Global Excellence – CBRE

CB Richard Ellis Group announced that it is the first recipient of Frost & Sullivan`s Global Excellence in Outsourcing Award in the commercial real estate services sector. In selecting CB Richard Ellis as the world’s premier commercial real estate services outsourcing firm, Frost & Sullivan conducted an exhaustive and independent assessment of the CRE services industry globally.

Reuters Mon Jun 28 2010

Real estate giant eyes funds management: Cushman & Wakefield

One of the world’s biggest real estate agents plans a push into funds management to compete with listed rivals like CB Richard Ellis. NEW Cushman & Wakefield president and chief executive Glenn Rufrano started in the top role at New York-headquartered C&W in March after two years in Australia resuscitating struggling shopping centre owner Centro.

The Australian Sun Jun 27 2010

Whiterock REIT Completes Agreement To Manage Commercial Properties – Whiterock REIT – WRK.UN-T

Whiterock REIT a growth oriented REIT with a significant presence in major markets and a high quality long-term leased revenue stream, announced today that it has completed an agreement to manage eight commercial properties totaling approximately 600,000 square feet in the Greater Toronto Area. Management of these multi-tenant office buildings is set to begin July 1st, 2010.

Canada News Wire Mon Jun 28 2010

Building Toronto city hall green roof posed host of challenges

Construction crews building a living roof atop the second-storey podium at Nathan Phillips Square could be forgiven for thinking they were working inside a library. The $2.3 million living roof will stand as one of the city’s quietest projects. The real thing opened late last month and ranks as the largest living roof in Toronto.

Daily Commercial News Fri Jun 25 2010

Canadian new building permits plunge in May – Statistics Canada

Canada’s new building permits fell five times more than forecast in May, adding to evidence the country’s housing market is cooling. The number of new building permits issued by Canadian municipalities dropped 10.8% from the previous month to a total value of $6 billion, Statistics Canada said. That compares with economists’ forecasts for a decline of about 2%.

Toronto Sun Tue Jul 06 2010

Thinking of investing in commercial real estate?

Early in my career, I owned a small marketing services business. Beyond a few computers and desks, we didn’t have any assets to speak of. I feared I wasn’t building any equity in my business but, rather, just peddling hours. I decided I would look into buying a piece of commercial property to operate from as a hedge in case my business turned out to be worthless.

Globe and Mail Wed Jul 07 2010

OMERS and Caisse in property swap

A decade long marriage between Ivanhoe Cambridge, the real estate arm of the Caisse de dépôt et placement du Québec, and Oxford Properties Group, a division of Ontario Municipal Employees Retirement System, has ended in an amiable divorce. The pension funds, which jointly owned six different shopping malls across Canada, have engaged in “a complicated monopoly game,” that involves a “$1-billion swap” of properties.

Financial Post Fri Jul 09 2010

REITs: Picking the winners

For income-minded investors, real estate investment trusts have long been a staple of the portfolio. REITs are a way for investors to participate in real estate without actually owning any real estate. That’s because the trusts own and manage the buildings, and its investors own units that can be traded in the market, providing the liquidity that you can’t get as a landlord.

CTV Fri Jul 09 2010

Ghostly Toronto structure could get new lease on life

It’s loomed for years overlooking Spadina Avenue like a ghostly, gabled reminder of Toronto’s Victorian past. But the 135-year-old Gothic Revival structure at 1 Spadina Cres. – just north of College Street – could soon undergo an ambitious renovation and expansion, according to a plan actively being considered by the University of Toronto and the John H. Daniels faculty of architecture and landscape design.

Globe and Mail Mon Jul 12 2010

Yahoo Pairs with Zillow on Real Estate Listings

In a bid to beef up its home-buying features and lure local advertisers, Yahoo! is adding home listings from Zillow, an online real estate service that lets users research the value of homes. Pairing with Zillow.com boosts Yahoo’s home listings to about 4 million from 3 million and gives the company a bigger slice of the ad market for smaller-sized businesses.

Business Week Mon Jul 12 2010 – Wall St. Journal

Q&A Is Commercial Real Estate Bouncing Back?

Commercial real estate is showing signs of a market bottom, says Mike Kirby, chairman of Green Street Advisors, a Real Estate Investment Trust (REIT) research firm. Kirby tells TIME which parts of the market are turning up and who’s doing the buying. You’ve said commercial property values are up 20% from the lows. Other reports say we’re still down 40%.

Time Wed Jul 14 2010

Construction on island tunnel to start in 2011

The Toronto Port Authority says it will break ground in early 2011 on a $45-million pedestrian tunnel, linking the Western Gap ferry docks at the foot of Bathurst Street to the Billy Bishop Toronto City Centre Airport. Mr. Wilson cited increasing traffic to the airport as the impetus for the tunnel’s construction. Last year, approximately 770,000 people used the airport, compared with 25,000 users just five years ago.

National Post Wed Jul 14 2010

TTC must capitalize on its real estate

If the Toronto City Summit Alliance’s recent roundtable on funding the future of transit is any indication, Toronto is doomed to transit stagnation. Promoted as a ‘bold’ search for solutions, attendees discussed the merits of road tolls, congestion charges, commercial parking levies or increased property taxes — far removed from anything truly bold.

National Post Fri Jul 16 2010

Complete makeover for Ontario Place

Ontario Place, a fading Toronto icon, will soon be torn down and replaced by a newer version to restore the park to its former glory. The provincial Crown corporation has put out a formal request for ideas to completely redevelop its 39-hectare (96-acre) space along Lake Ontario, which will probably result in the removal of features, such as the once groundbreaking Cinesphere.

Toronto Star Fri Jul 16 2010

Canada Pension Plan offers $3.2 billion for partial ownership of toll Hwy. 407

Ontario’s busy Highway 407 Express Toll Route could soon have another Canadian owner after one of the country’s largest pension funds bid on the Australian firm that owns a 30 per cent stake in the highway. The Canada Pension Plan Investment Board has made a non-binding $3.2-billion proposal to acquire Australia’s Intoll Group.

Toronto Star Fri Jul 16 2010

Colliers Midtown Commercial Real Estate Submarket Updates – Q1 2010

Yonge and Bloor
Yonge bloor submarket dashboard q1 2010

Yonge and Eglinton

Yonge and St Clair

Colliers Toronto Office Market Statistics – Q2 2010

Key findings of our most recent GTA Office Market Statistics are:

· GTA’s office vacancy remains fairly steady at 12.3 M SF or 6.6 percent of the current inventory, up less than 600,000 SF compared to the end of Q2 2009.

· The same holds true for GTA’s availability totaling 19.8 M SF or 10.6 % of the inventory at the end of Q2 2010. Compared to Q2 2009, sublease availability has decreased by 850,000 SF, now amounting to 3.4 M SF or 17 percent of the available space.

· Asking Net Rent averages out to $16.25 per SF, which is down nine percent from the value observed at the end of Q2 2009. The highest average asking net rent is continuously quoted in the Downtown market.

· Occupied space sums up to approximately 167 M SF or 90 percent of the current inventory. While occupied space is below Q2 2009 levels by approximately 400,000 SF, it is up nearly 500,000 SF compared to Q1 2010.

Toronto Real Estate News – June 2010

Downsview plan set for North York council vote

In 1994, the federal government announced its future as a massive national park. Next week, the Downsview plan goes before North York community council when councillors vote on the latest iteration of the city’s proposals for the area, which make provision not only for 100 hectares of parkland and thousands of units of mixed-use residential development intended to pay for it.

Globe and Mail Wed Jun 16 2010

Commercial Firms Fight Back in a Post-Boom World

After taking a battering in the severest recession in modern memory, commercial real estate brokerage firms are trying different strategies to compete in a post-boom world. One of the biggest question marks is the future of Cushman & Wakefield, the world’s third-largest commercial real estate brokerage, according to National Real Estate Investor magazine. After losing $127 million in 2009 Cushman & Wakefield …

New York Times Wed Jun 16 2010

Toronto Eaton Centre unveils details of $120M facelift

A better food court featuring real china plates. A dramatic new lighting sculpture suspended from the iconic glass ceiling. And a lighter brighter more airy feel throughout the mall. These are the main elements of a $120 million facelift for the 33-year-old Toronto Eaton Centre,which attracts 52 million visitors a year.

Toronto Star Fri Jun 18 2010 – National Post

http://www.thestar.com/news/gta/article/824260–name-chosen-for-new-waterfront-park

Commercial real estate markets better than expected – Cushman & Wakefield

Canada’s major office and industrial real estate markets stood up better than expected during the global recession and continue to recover faster than many markets in the United States and Europe, according to Cushman & Wakefield’s 2010 Mid-Year Outlook released today. The comprehensive report covering 12 major markets across Canada found growth in demand was generally much stronger than expected.

Cushman & Wakefield 2010 Mid-Year Outlook Mon Jun 21 2010

Whiterock REIT closes the Toronto office building purchase – WRK.UN-T

Whiterock REIT has completed its previously-announced agreement to purchase Airway Centre 1 and to long-term lease Airway Centre 2-4. These office properties are located at 5915-5955 Airport Road, Mississauga. They are primary market assets consisting of four office towers located adjacent to Toronto Pearson International Airport, have excellent access to the major 400 series highways; and are within minutes of downtown Toronto.

Canada News Wire Mon Jun 21 2010

Office vacancy rates hold steady – CB Richard Ellis

Vacancy rates held steady in Canada’s office buildings and industrial properties through the last quarter, though they are sharply higher than this time last year as new buildings added millions of square feet of space in Toronto and Calgary. CB Richard Ellis said the overall vacancy rate for downtown and suburban markets was 10.1 per cent in both the first and second quarters of the year.

Globe and Mail Mon Jun 21 2010

The end of the office? Not so fast

Clive Thompson had a story recently in The Globe and Mail’s Your Business magazine about the end of the office, and how it is being driven by “technological and cultural shifts as the Web-literate Generations X and Y become the driving force behind entrepreneurship.” There is little doubt that “the office” as we know it is changing as more people work from home as opposed to dwelling in a cubicle.

Globe and Mail Fri Jun 25 2010

Air Canada, Continental win Toronto Island airport slots

Porter Airlines Inc. will lose its Toronto Island airport monopoly by the end of 2010 under a proposal that awards new takeoff and landing slots to Air Canada and Continental Airlines Corp. Since starting operations in October, 2006, Porter has enjoyed the monopoly on commercial flights at Billy Bishop Toronto City Airport, located on an island off downtown Toronto.

Globe and Mail Thu Jun 24 2010

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