An old address has been re-configured for the new era. 10 Dundas Street East in downtown Toronto has been completely overhauled. Everything from one of the largest digital billboards in the country to well capitalized tenants, to catering to tourists. The interplay between the mix of uses attempts to maximize rental income and hedge against future risk. #recg #commercialvaluations #thetenor https://retail-insider.com/retail-insider/2021/12/iconic-10-dundas-street-east-buildin

Office workers at Google are apparently venturing back into the office despite the OMICRON variant. I see this as a sign that people are coming to terms with the fact that the answer to dealing with COVID is to manage it rather than avoid it. As with other viruses from the past, when a virus enters the atmosphere it is here to stay but as medical science learns more on how to deal with it, it is effectively eradicated or managed to the degree it will ever be. That is reality

Employee's are now apparently including the flexibility to work remotely as a health benefit according to a recent survey. During the onset of the pandemic I felt that there was too much uncertainty or moving parts to predict the future. However, if the sentiment towards remote work remains into the long term this may have implications on office space into the future. For a copy of the report on this from EDC please see the article link below. #recg #healthbenefits #remotewor

The gradual prominence of cryptocurrency is garnering attention from the regulatory bodies. Apparently, cryptocurrency cannot be easily traced as with current forms of currency. It may seem extreme to even fathom the thought of currency in the form of anything else we are accustomed to. However, we should learn to become more open-minded to this as it appears to have had some impact on the underground economy, which indirectly impacts the wider economy and everything else we

Despite the economic shutdown during the onset of the pandemic in early 2020 many of the large institutional real estate investors weathered this well. This was due in part to the fact that they are well capitalized. A "deep" balance sheet became more valuable during turbulent times. In this vein, the notion of corporate consolidation or mergers and acquisitions is garnering attention from the Competition Bureau. They want more power to regulate how various companies are form

Amazon is opening another distribution facility. The scale of industrial property is being re-defined. This one being proposed at 720,000 square feet is considered small relative to some other large bay industrial assets in play. The more subtle consideration is the trickle down effect on less desirable industrial assets that the prime industrial assets create. Please feel free to reach out to us if you have questions - 416-322-7888 or info@recg.ca #recg #industrial #largebay

There has been no shortage of news on the impact of the pandemic on enclosed retail real estate assets. An example of how one group of asset managers are dealing with the decline in retail sales comes from Oxford Properties. They have combined the need for affordable housing and given life to enclosed retail into one compelling offering. Oxford properties is in the process of making major change to some of its retail properties by building high density rental apartments on si

A new development in Western Canada begins to take hold. With heightened industrial valuations in Ontario it is not unexpected that industrial asset gains spread to other markets. #recg #development #canada #markets #industrialassets #industrialrealestate #commercialvaluations #realestatedevelopment https://leaderpost.com/news/local-news/new-industrial-business-park-being-developed-north-of-regina

Since the onset of the pandemic the Federal Government has understandably reacted by invoking various economic stimulus. The negative consequence of this is that we have to borrow money to pay for the stimulus and than print money to service the debt. It is widely known economic theory that when the money supply increases drastically, vendors of goods and services pick this up by increasing price levels. This is in addition to the supply chain issues that have been blamed for

Since the onset of COVID there has been no shortage of speculation on the future of the office market. So far, the consensus is that most office workers want the flexibility of a remote work environment with some time spent in the office. In this vein, a recent article predicts that office space requirements will shrink over the coming years and decades. On the surface this would imply high office vacancy. However, if you factor in the fact that new product coming on-stream w

Real estate value can be influenced by many factors. What is less talked about is the notion that market value may be impacted by elements that have no basis in fact yet are perceived to exist. Over the past 30+ years of valuation experience we have seen a varied degree of valuation files. From time to time we receive very unusual requests. One in particular is the perception that a building is haunted or otherwise has a reputation for "bad luck". The detailed valuation

The Bank of Canada recently conducted a survey of Canadians and found positive sentiment. Generally, consumers are on board with a higher degree of spending and see inflationary pressure as a temporary occurrence. The survey goes on to explain how workers have re-evaluated their work situation among other factors. This is all important information to real estate valuation. Whenever we make projections in commercial real estate we appraise the value of future expectations.

We all have a tendency to gravitate towards what we know and understand. Cryptocurrency has drawn much attention in recent years. Vancouver is using this new form of currency as an energy source. In my view it is only a matter of time before there are other mainstream alternate forms of currency that will make up the new notion of "value". Value can take many forms so it is up to us to expand our thinking beyond traditional currency. #buildings #naturalresources #heat#cryptoc

It is well known that the pandemic and pre-longed shutdowns have disrupted production of various products and created shortages. The initial thought was that this would create temporary inflationary pressures on price levels. However, when combined with the fact that the Federal Government is printing large sums of money to pay for economic stimulus the question becomes whether inflation will be temporary or more structural in nature. The cost of borrowing has recently risen

The discussion over how to tackle the lack of affordable housing continues. Options include sharing real estate among other thoughts. However, I would rather address the underlying problem of why housing affordability became an issue in the first place and see where that takes us. More on this coming from me in the near future. #recg #housing #future #sharedliving #commercialrealestate #commercialvaluations https://product.costar.com/home/news/shared/1332877759?utm_source=new

There is no doubt that inflation is creating pressure on interest rates to rise. To understand what is likely to occur with interest rates going forward, I believe one important variable to look at is what the low interest rate environment has created. Low cost of capital has certainly created opportunity by allowing businesses to grow but it is also responsible for inflated asset valuation levels that have come mostly from the ability to borrow. In other words, there is an i

A creative spin on retail of the future may bring it into the social forum. Interesting pitch! #retail #onlineshopping #consumerbehavior #retailing #salesandretail #commercialrealestate #commercialvaluations #recg https://retail-insider.com/retail-insider/2021/09/reimagination-required-for-long-term-survival-of-shopping-centres-in-canada-expert-feature-interview/

There is reportedly an emerging trend in real estate where some buyers are inserting clauses into their offers to purchase where the deal is not contingent on the outcome of a building inspection. It is being pitched as a solution to situations in hot markets because the seller will be more likely to accept the offer if there is no chance of a consequence stemming from a building inspection. In my view, the entire purpose of a building inspection is to have the building condi

The new CIBC Square office development is reported to be fully leased. Of note is the quality of the tenant mix. From the onset of the pandemic we were all speculating on the future of office space. This is testament to the natural tendency of people to want human interaction particularly in quality settings. CIBC square is a high quality office development with a strong tenant covenant that adds value to the asset. #recg #commercialvaluations #spaceplanning #towers #interna

The Bank of Canada recently announced that it is clawing back its purchase of GOC bonds. We all know that from the onset of the pandemic the BOC made significant effort to hedge against risk and inject liquidity into the financial markets through its bond buy-back's. On the surface it would appear that easing of the previous policy would signal good news. What I am watching however is the impact that monetary policy has on inflation. Inflation has spiked and if not curtailed