AtlanticBroadcast. Summer 2017

Transcription

1 AtlanticBroadcast Summer 2017

2 Atlantic Market Trends Office New office construction is in progress in Halifax, St. John s and Saint John, and planned in Moncton and Fredericton. Nova Centre, Halifax, is now focused on interior construction, with two office tenants announced. Queen s Marque, also in downtown Halifax, is busy with site preparation with its opening anticipated for early Downtown office vacancy rates have risen in Halifax and St John s, fallen in Moncton, and dropped slightly in Fredericton and Saint John. Suburban vacancy rates have risen in the five Atlantic cities surveyed. Asking rental rates remain basically flat in most markets with tenant improvement costs rising, adding pressure to net effective rents. St. John s office rates have fallen slightly over rates reported in Office Vacancy Rates: Q % 10.9% 14.9% 15.5% 15.7% Saint John Fredericton Halifax Moncton St. John s Industrial Leasing activity during the first half of 2017 pushed the Burnside Industrial Park s vacancy rate down 170 basis points to 14.5%. With this decline a new industrial building at 24 Gloria McCluskey Drive is now 100% leased. Planned new inventory includes an additional two buildings on this site in addition to planned development on Wilkinson Avenue by East Port Properties, with the site being able to accommodate up to five buildings. Rental rates remain stable, with warehouse rents ranging from $5.50 to $8.00 per square foot net, while new construction is seeking rates above $10.00 per square foot net No significant industrial transactions took place during the first half of 2017; however, a number of older buildings in Burnside are available for sale. Burnside Industrial Park 16.2% 14.5% Q Q

3 Multi-Residential The Halifax rental market conditions are stable-to-improving with the lease-up of recently completed projects exceeding expectations. Pre-leasing in projects under construction is also reported to be active. In Moncton, the rental market conditions are stable with increasing rental rates and decreasing vacancy rates Rental market conditions in Fredericton continue to be strong, with the lowest vacancy levels and highest rental rates in all of the three largest NB urban centres (Fredericton, Moncton and Saint John), as well as adding upwards of an additional +100 units before year end. Conditions in Saint John CMA remains stable, however Saint John continues to be labored with high vacancy and low rental rates, with little growth expected in the near term. Availability of quality multi-residential product is limited in Charlottetown, as its strong immigration trend continues and vacancy rates are at all-time low. Rental market conditions within the St. John s CMA are beginning to normalize as higher vacancy experienced in late 2016 begins to decline. Rental rates remain stable with little growth expected in the near term. Overall Multi-Residential Vacancy Rate, 2012 to 2016 (%) Source: CMHC Halifax Moncton Fredericton Saint John Charlottetown St. John s 2

4 Retail The grand opening date for IKEA has yet to be announced; however media reports that a fleet of transport trucks are arriving with inventory with staff already in place setting up. H&M opened at the Halifax Shopping Centre, its second location in Metro Halifax, and also opened a store at McAllister Place in Saint John, NB. Bed Bath and Beyond is coming to Bayers Lake Power Centre opening a second Metro location in the Fall. The Cabot Power Centre in St John s welcomed discount retailer Marshall s. Mapleton Power Centre, Moncton, is growing with Mastermind Toys, Pannizza and Rossano s Italian Grill. Sunrise Records and Globo Shoes opened at Champlain Mall in Dieppe. We expect more nationals could be considering the Moncton market despite overall weaker conditions in this sector. 3

5 CONDOMINIUM RESERVE FUND STUDIES Julie Clarke, BComm, AACI, Director RVA As a provider of condominium reserve fund studies, I am constantly asked the question, Why do we need to have a reserve study done, it seems like an unnecessary expense to our condo corporation? Well, if you live in the provinces of New Brunswick, Nova Scotia and Newfoundland- Labrador, it is the law. That being said, there are definite benefits to having a healthy reserve fund in place. The purchase of a home is typically the single largest investment anyone will make during their lifetime. Protecting that asset should be their number one priority. Having a reserve fund study completed is the best way to protect, not only you, but the rest of the unit holders. The reserve fund is simply a future budget plan that sets aside monies to cover the cost of future repairs of a capital nature, i.e.: roof, windows, foundation, etc., and since not all people are in the same financial position within the condominium corporation, it is very important to contribute to a reserve on a relatively consistent basis to ensure the money is available when required. Nobody living in a condo, or any other type of housing for that matter, wants to be given a special assessment whereby they need to write a cheque for a large sum of money to cover the cost of a repair that hasn t been anticipated. The reserve fund, if administered properly, foresees these costs and accounts for them on an annual basis. A reserve fund, together with an effective repairs and maintenance plan, will keep major repair costs down and extend the life of capital improvements. A reserve fund, above all else, protects your investment, making it more marketable when and if the time comes to sell. For more information on Reserve Fund Studies for condominiums, please contact Julie Clarke at or Julie.clarke@altusgroup.com. 4

6 New Infrastructure Spending for the Atlantic Provinces With the budget released earlier this year, infrastructure spending in the Atlantic Provinces are seen in public infrastructure for projects such as schools, municipal buildings, hospitals, long term care facilities, water/wastewater, highways and museum heritage sites. Here are the highlights for each province for the fiscal period for the planning, design and construction of buildings and infrastructure, focusing on transportation, healthcare facilities, and school projects. Nova Scotia The Province of Nova Scotia s budget for the period features infrastructure dollars allocated to the development of public sector projects such as those for transportation, education and healthcare. Project Highlights Include: $390M for a 7 Year Highway Improvement plan including the development of three new twinned highway projects, the construction of four new interchanges and the revitalization of roadways $21.9M for healthcare construction/renewal including healthcare facilities in Halifax, Dartmouth and Hants County $99.5M for school construction/reno including 9 new schools in Spryfield, Tatamagouche, Bridgetown, Bible Hill, Sheet Harbour, Eastern Passage, Dartmouth, Halifax and Yarmouth Source: Budget : Highlights, Finance and Treasury Board, Province of Nova Scotia 2017 Source: Budget Opportunities for Growth, Budget Address Province of Nova Scotia Source: Capital Plan , Province of Nova Scotia,

7 New Brunswick The New Brunswick budget for the period features record investments in healthcare and education. Public sector infrastructure dollars are allocated towards transportation, long term care and municipal buildings throughout the province for the period. Budget Highlights Include Capital Allocation for: $11.8M focus on energy retrofits and renewable energy projects for public buildings $60.2M in healthcare projects $95.9M investment in schools $5.6M in universities and community colleges for the planning, design, construction and renovation of public buildings throughout the province Source: Prince Edward Island Prince Edward Island is experiencing the largest increase in healthcare funding in nearly a decade. Infrastructure dollars are allocated to health facilities, long term care facilities, school construction, vand highway projects for the period. Budget Highlights Include Capital Allocation for: $24.7M in health and long term care facilities $10.2M in school construction and renovations $29M in national and collector highway projects including the Cornwall Perimeter Highway Source: Prince Edward Island Capital Estimates Fall

8 Newfoundland and Labrador The Province of Newfoundland and Labrador is investing infrastructure dollars into public sector projects such as those for transportation (including roads, highways and marine transportation), healthcare facilities and schools through the budget period. Budget Highlights Include Capital Allocation for: $217M for transportation projects including the 5 year provincial roads program, the Trans Labrador Highway, Team Gushue Highway construction continuation, marine transportation vessels and associated infrastructure $88.8M in healthcare infrastructure $53.8M for new school projects, the maintenance and repair at existing schools and for the construction of school extensions Source: Budget 2017: Realizing Our Potential Altus Group s Atlantic Cost Division can be reached at tammy.stockley@altusgroup.com or deanne.bain@altusgroup.com. 7

9 ALTUS GROUP NOW DOES BOMA MEASUREMENTS. With Altus Geomatics becoming a part of Altus Group Expert Services, it only made sense to complete BOMA floor measurements. Altus Geomatics are experts in measuring anything. This division is comprised of Land Surveyors, Survey Engineers and other measuring experts. They measure anything, including land, pipelines, bridges, mechanical plants, buildings and much more. Having equipment and staff that can accurately measure to a few millimeters combined with our expertise in real estate made it an easy decision to offer a BOMA measurement service. Having accurately measured floor plans is critical for all real estate transactions. Too often outdated or improperly calculated square footage area is used to complete these transactions. Accurate area analysis is an important part of any premises for lease or sale. Having BOMA standard measurements completed can benefit you in many ways. Current BOMA standards may be able to capture areas previously not considered as Rentable space. In most cases the increase in rentable space per the latest standard will offset the cost of measurements. BOMA is an industry-wide standard. You can now accurately compare your building with others. As a National Standard, BOMA measurements can assist in courts and protect you from possible lawsuits of incorrect square footage. Altus Group offers a full range of building measurement services including BOMA Measurements, as-built floor plans, 3D laser scanning and Building Information Models (BIM). If you are not sure your building has been measured to BOMA standards let us know. Altus Group will make sure you are getting paid for every square foot. For more information contact Jaret Guimond, NBLS, P.Eng., Branch Manager, Altus Geomatics, or jaret.guimond@altusgroup.com. 8

10 The leading source of real estate intelligence in Atlantic Canada In order to serve you better, Altus Group has five offices located across Atlantic Canada. Here, our regional experts work together, as one integrated office, to provide Atlantic Canadians with the most diverse services and solutions for all their commercial real estate advisory needs. Atlantic Canada Offices Halifax St John s Charlottetown Moncton Fredericton