Blog | The Real Estate Consulting Group of Canada Ltd.

Mar 8
1 min

SELLERS ARE BUYERS & BUYERS ARE SELLERS

There has been much talk as of late about interest rate trends. Interest rates have been temporarily and unrealistically low due to the impact of the pandemic. This has caused a frenzy among both sellers and buyers. A low interest rate environment will not benefit property owners in the long run. A seller that gains on a higher purchase price due to low cost of borrowing will pay it back when the table is turned on them and they become a buyer in the same market. In the end,

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demitryomrin

Feb 8
1 min

GOOD LOCATIONS ARE GOOD LOCATIONS

COVID has been often referred to as an "accelerator". It would be an understatement to say that is the case in the world of retail. Shoppers transitioned overnight from in person purchases to online or e-commerce. Another company listed below in the article is helping small business digitize and sell to the same customers virtually. This leaves some retail space that is available for a re-positioning into alternate use(s). Amazon for example has purchased former retail s

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demitryomrin

Jan 22
1 min

PANDEMIC BUYING SPREE

In uncertain economic times a stronger balance sheet translates into greater buying power. It is therefore no surprise that the larger well capitalized institutional investors are actively pursuing real estate assets in an effort to seek better returns for their investors. #recg #pensionfund #commercialrealestate #commercialvaluations

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demitryomrin

Jan 21
1 min

PANDEMIC RE-DEFINING RISK

One of the words used to describe the pandemic is "accelerator". Certain commercial real estate asset classes were pushed into being obsolete due to the onset of the pandemic. What is not spoken of often is how it has re-defined risk. A few months prior to the pandemic taking hold, our firm was retained by a commercial landlord of a medical office building that was underperforming. Our role was to conduct a highest and best use study (i.e. re-positioning) and make recomme

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demitryomrin

Jan 20
1 min

COMMON DENOMINATOR - BEHAVIOUR OF MONEY

There is no shortage of coverage relating to incoming President Biden in the USA. Traditionally, a new government coming into power when a country is in a state of uncertainty is viewed positively by the citizens. As a valuator I remind myself of how important stability is to the capital markets. There is an important linkage between capital markets and commercial real estate. The common denominator among every investment is capital. Where investors decide to place that

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demitryomrin

Jan 20
1 min

MITIGATING VALUE - NEW NORMAL

Even after vaccinations take place it is expected that a new normal will still prevail. To that end, a company has created an application that automates the flow of patrons at retail and other operations. It will help maintain social distancing and ensure businesses are facilitating commercial traffic. Commercial traffic is central to commercial valuations. #recg #retail #covid19 #commercialvaluations https://www.retail-insider.com/retail-insider/2021/01/canadian-company-t

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demitryomrin

Jan 19
1 min

INCREASING VALUE THROUGH TECHNOLOGY

Small retailers now have a common supply chain source thanks to innovative technology. This could create collective buying power on par with larger retailers if the service is true to its claim. Real estate value is somewhat tied to business value. As businesses do well in an area this creates greater value for their bottom line and the increased traffic (business) often results in higher rent, all else being equal this will translate into higher valuations. #recg #commer

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demitryomrin

Jan 18
1 min

RISK OF CHASING TRENDS

There has been much discussion on the pandemic causing buyers to look outside of urban regions. Isolation under a lockdown has caused buyers to seek more space as a trade-off against an urban location. While it is important to pay attention to trends, we must be mindful of the fact that it is especially risky to overpay on a trend and become saddled with increasing debt particularly when interest rates are unrealistically low and can only go up at some point in the future r

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demitryomrin

Jan 16
1 min

DEFINITION OF ESSENTIAL CONSTRUCTION

As we all know by now the Provincial Government recently enacted new rules for the construction industry. If this lasts for too long it will kill the small cap construction companies in favour of the larger well capitalized developers/builders. #RECG #ontarioconstruction #torontoconstruction #commercialvaluations https://torontostoreys.com/ontario-new-covid-19-measures-ontario-construction-industry/

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demitryomrin

Nov 3, 2020
1 min

ADDRESSING HOUSING SUPPLY:

Just west of Toronto in Cambridge is a new community that was created without the usual approval process. It received "Ministers Approval" and by-passed the usual development process. This investment represents a re-development of a retail site and will address lack of housing supply, particularly as the Fed's announce increased immigration levels. #recg #development #cambridge #commercialvaluations #landvaluations #ministersapproval https://renx.ca/smartcentres-reit-huge-gta

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demitryomrin

Oct 18, 2020
1 min

NEGATIVE INTEREST RATES

When the impact of the pandemic began to take hold earlier this year, the incoming BOC governor Tiff Macklem first mentioned the notion of negative interest rates. Among other considerations, negative rates are intended to stimulate economic activity by engaging savers or "hoarders" of money to spend and invest. This concept of negative rates would infer that an economy is at such a low point that negative rates would be a last resort to force economic stimulus. However, if a

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demitryomrin

Oct 14, 2020
1 min

STATE OF THE MARKET:

This is a great summary of how real estate investors are pivoting amidst COVID-19. The article speaks to several key asset classes and delves into relative demand, land intensification (density increase), conversions, re-definition of risk, etc. All of these are considerations that were made back in the recession years of the early 1990's in order to build equity against valuation decline due to market forces. COVID-19 has certainly complicated how fund managers create opport

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demitryomrin

Sep 25, 2020
1 min

ECONOMIC UPDATE

The Conference Board of Canada's chief economist comments on the recent Throne Speech by the Fed's. He points out that some of the spending will be permanent, resulting in the government being forced to find new sources of revenue. I believe it is only a matter of time before the reach of capital gains will extend into new territory. #recg #capitalgains #conferenceboard #commercialvaluations #realestate https://www.conferenceboard.ca/insights/featured/canadian-economics/can-

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demitryomrin

Sep 24, 2020
1 min

EQUITY SHARING = CAPITAL GAINS

During early 2019 when the Fed's announced an equity sharing plan for first time buyers I wrote an article on this because I felt it was important to talk about the gradual over-taxation on those that have invested and generated wealth. My thought at the time was that the notion of equity sharing was a precursor to some form of capital gains tax. As time passes I feel more convinced that we are on a path towards a capital gains tax on investment property at first and than lik

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demitryomrin

Sep 23, 2020
1 min

CALGARY OFFICE MARKET

A good sign of what may be coming for Alberta. It is smart for the office market to take a pivot towards gradually positioning itself as another tech hub. #recg #officeleasing #calgaryofficemarket #commercialvaluations https://product.costar.com/home/news/shared/1393120995?utm_source=newsletter&utm_medium=email&utm_campaign=weekly&utm_content=p3

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demitryomrin

Sep 3, 2020
1 min

2nd Class Space Pays a Price

Toronto office leasing market has shifted with significant drop in large transaction deals since the onset of COVID-19. During the course of our work in our office we have noticed more recent lease transactions are undisclosed. Traditionally, this signals concessions being made by landlords, which they understandably do not want revealed to the market. When markets shift, lower tier assets at times are more at risk than top tier product. For example, if an office tenant is in

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demitryomrin

Sep 1, 2020
1 min

CONSTRUCTION COSTS & VALUE

COVID-19 is credited with significantly increasing construction costs. The length of the pandemic has to some degree disrupted supply chains and dwindled inventory levels in certain sectors. How do you think this will impact valuation of real estate? When we conduct feasibility studies cost is of paramount importance. If increasing construction costs prohibit or reduce new construction would existing commercial/industrial buildings contribute more value than they do now?

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demitryomrin

Aug 17, 2020
1 min

FINANCIAL PROJECTIONS - MISNOMER

When times are uncertain most of us tend to hold off on taking on risk. Yet this is the most crucial period to stick with the long-term fundamentals. A down period is an opportunity rather than a barrier. Real estate is in fact cyclical. When capital chases a geographical market or asset class everyone jumps on board willingly paying more. When times are uncertain those that retreat are missing out on opportunity for potential growth. The investors that stay on track with the

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demitryomrin

Aug 11, 2020
1 min

CREATING VALUE - Re-Positioning to New Use(s)

A long awaited development plan reveals itself in Toronto. Cloverdale Mall was originally built in the 1950's and was ripe for a re-positioning. The new plan submitted to City of Toronto encompasses a mix of uses including residential (rental & condo), retail, recreational, etc. What may be lacking from the plan that would enhance value is the fact that transit to that part of the city already under serves its community. Value would be positively influenced if transit is

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The Real Estate Consulting Group of Canada Ltd.

Analysts, Appraisers, Consultants, & Mediators

SELLERS ARE BUYERS & BUYERS ARE SELLERS

GOOD LOCATIONS ARE GOOD LOCATIONS

BOOM: Post Covid

PANDEMIC BUYING SPREE

PANDEMIC RE-DEFINING RISK

COMMON DENOMINATOR - BEHAVIOUR OF MONEY

MITIGATING VALUE - NEW NORMAL

INCREASING VALUE THROUGH TECHNOLOGY

RISK OF CHASING TRENDS

DEFINITION OF ESSENTIAL CONSTRUCTION

ADDRESSING HOUSING SUPPLY:

NEGATIVE INTEREST RATES

STATE OF THE MARKET:

ECONOMIC UPDATE

EQUITY SHARING = CAPITAL GAINS

CALGARY OFFICE MARKET

2nd Class Space Pays a Price

CONSTRUCTION COSTS & VALUE

FINANCIAL PROJECTIONS - MISNOMER

CREATING VALUE - Re-Positioning to New Use(s)