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Local Market Reports - Recent News and Market Information
I like to keep an eye on local reports and share them with you, to keep you informed on market conditions.If you ever want to add something to this, feel free to contact me on (780) 504-6674 or e-mail me at ryan@philipenko.com.
Friday, July 15, 2011 - Housing Developer Looking For Housing Boom in Near Future
Edmonton’s housing market has not seen the upswing as cities like Toronto and Vancouver have experienced. Some people are wondering if it will ever happen. But Radhe Gupta, who founded and is the CEO of the Rohit Group of Companies in Edmonton, is convinced that upswing is right around the corner. His prediction is that the market is going to perk up by the end of 2011 or the early part of 2012.
There are skeptics that question Gupta’s prediction, but the man who has turned a family business into one of Western Canada’s premier developers does not operate on whims. The business he is in is high risk, competitive and he has one of the fastest growing firms this year. It also managed to remain untouched by the recession. Between the years of 2005 and 2011, the firm grew over 350 percent to be worth $160 million.
Gupta expects that by the end of 2012, his revenues will increase to roughly $240 million, a 50 percent increase, thanks to plans for the Fort McMurray area. They bought Parsons North, a 75 acre plot that they planning to develop by next year. That project alone is expected to create roughly $180 million in revenues. There is no more serviced land available in that area. Gupta bid on Parsons North when the government released the land earlier in 2011, and won. Other Edmonton holdings include Creekwood Chappelle, Infusion, Elements at Callaghan and Callaghan Ravines.
Wednesday, July 6, 2011 - Edmonton’s Industrial Leasing Market Getting Hotter
The energy industry in Alberta is back is full swing and this is having an effect on the industrial real estate availability in Edmonton. The vacancy rate is dipping into territory not seen since before the recession, back in 2008. During the second quarter of 2011, the rate fell to below the five percent mark, hitting 4.8 percent. During the same quarter in 2010, the rate was 6.8 percent.
Dave Young, who is a senior vice-president for DB Richard Ellis, as well as the Edmonton office’s managing director, notes that the entire province is showing positive growth. The industrial real estate market has seen more than two million square feet of positive lease absorption during the last nine months. This is having a ripple down effect, as construction increases, trying to ease the demand. There is a possibility of a tighter market towards the end of 2011.
As far as office space, the second quarter vacancy rate came in at 10.3 percent, which is down a bit from the 10.5 percent seen in the same quarter in 2010. It is also down from the 10.8 percent seen in this year’s first quarter. In the downtown office market, the first quarter of 2011 showed a vacancy rate of 8.8 percent. The second quarter came in at 8.4 percent, which is also lower than the 8.6 percent seen in the second quarter of 2010.
Downtown landlords, expecting the addition of space with the Epcor project about finished, are trying to hang onto their existing tenants by offering incentives and lower rents. These bargains most likely won’t be around for long.
Saturday, June 25, 2011 - Edmonton Continuing Affordable Housing Building on Surplus School Sites
In 2006 Edmonton introduced a program that would build affordable housing on surplus school land. The city received criticism from people afraid of having low-income housing in their neighborhood, and that were worried about the loss of open green space. The program enables first-time home buyers an affordable way to get into the market.
The first two sites were Canon Ridge in the Homesteader area, and Greenview in the Woodvale neighborhood. All 85 townhouses have been sold and most of the neighbors have had no complaints. There are 18 more sites under consideration, with the goal of having them finished by 2021. The city is hoping to have similar success with the additional sites.
New home buyers saved roughly$11,000 to $12,000 on the purchase of their homes, which, for many, made the difference between owning a home or not. Housing prices have gone down since the recession in 2008, so there weren’t as many participants as expected. The idea was to have a draw for the units, but it wasn’t really needed. Profits from the affordable housing program will be equally shared with the school boards.
Friday, June 20, 2011 - Edmonton’s Industrial Real Estate Market Gearing Up
What Edmonton lacks in downtown office space, it far more than makes up for with the amount of industrial real estate space available. The industrial market has seven times the amount of space taken up by corporate office buildings in the city’s core. Not only that but industrial space in Edmonton has Canada’s highest average per square foot rental rates.
Now that the oilsands are once again in full production mode, demand for that industrial space is heating up. Vince Lachance, who is with SCR Commercial Realty, notes that last summer things had sort of bottomed out. Nothing much was moving on either the industrial or commercial sides of the real estate market. Come the latter part of November and into December, demand started to increase and it has been going strong ever since.
Lachance notes that there has been interest in large parcels from investors as far away as Toronto. One in particular was looking for a serviced site of up to 50 acres. Another potential market is the companies developing the upgraders, which often need multi-acre sites and large warehouses.
Lachance also believes this will be a sustained demand, rather than the quick burst before the recession. Overseas companies, such as those from China and France who are already involved in the oilsands, are expected to increase their demand for space. They are also expected to stick around for the long haul, especially because they have formed partnerships with local firms.
Archived Reports
Wednesday, June 8, 2011 - Building Permits in Edmonton Still Slow Compared to 2010
Friday, June 3, 2011 - Environmentally Friendly Experimental Homes Built in Edmonton
Thursday, May 26, 2011 - Pilot Built-In Suite Project in La Perle Shows Promise
Monday, May 16, 2011 - Edmonton Enjoys Renewed Vitality in Industrial Real Estate
Friday, May 6, 2011 - Edmonton Shows Increase in Building Permits
Friday, April 29, 2011 - Chicago Financial Group Poses Plan For Downtown Arena Financing
Tuesday, April 26, 2011 - Mayfield Dinner Theatre Offers Latest Vision of Director Farren Timoteo
Thursday, April 14, 2011 - Minister Goudreau Wants to Tighten Home Construction Codes
Friday, April 1, 2011 - Edmonton Considers Tax Levy for New Arena Complex
Wednesday, March 23, 2011 - Canadian Homeowners Show Confidence in the Market
Wednesday, March 16, 2011 - Edmonton Home Starts Still Down
Thursday, March 10, 2011 - Edmonton Property Assessment Inquiries Due
Thursday, March 3, 2011 - Edmonton Home Sales Still Slow Despite New Mortgage Rules Looming
Friday, February 25, 2011 - Edmonton Still Trying To Find a Way to Fund Arena
Thursday, February 17, 2011 - Edmonton Must Recreate a Taste of Suburbia to Attract Residents
Friday, February 11, 2011 - Edmonton’s Downtown Neighbourhoods Getting the Once Over
Thursday, January 27, 2011 - Affordability of Homes in Canada Varies According To Where You Live
Wednesday, January 5, 2011 - Property Assessments in Edmonton Go Up Nine Percent
Tuesday, November 9, 2010 - Housing Starts Slow For October, but Yearly Total Is Right On Target
Friday, September 17, 2010 - Emmanuel House Expansion to Provide More Homes for Needy Seniors
Thursday, July 22, 2010 - Local Housing Market
Monday, June 22, 2010 - Years Before the BP Disaster, There was Atlantic No. 3 in Alberta
Saturday, May 15, 2010 - Arena Presentation Shares Little New Information
Saturday, April 24, 2010 - Air Miles Sets Green Rewards Trend
Tuesday, March 2, 2010 - Gem Theatre Demolished, yet Lawsuits Continue
Tuesday, January 19, 2010 - Olympic Torch Lights Up The City
Monday, December 14, 2009 - Average Resale Prices On the Rise
Tuesday, December 8, 2009 - 2009 Urban Design Awards
Thursday, November 26, 2009 - City Sees Recovery Signs
Saturday, November 21, 2009 - First Time Home-Buyer Advice
Wednesday, November 18, 2009 - Poll: Fair Government Response to H1N1, but Media Hype Not Acceptable
Friday, November 6, 2009 - Preserving The Garneau Theatre Building
Monday, October 26, 2009 - National Housing Market Picture
Friday, October 16, 2009 - August Increase Not As Much as Predicted
Tuesday, October 6, 2009 - 2010 Tax Bill Police Line Item
Friday, September 18, 2009 - Good News for Alberta Developers
Friday, September 11, 2009 - How Is The Market Doing?
Saturday, August 23, 2009 - Sports Fields a Disturbance to Area Residents
Wednesday, August 12, 2009 - Canadian Home Prices Coming Down
Tuesday, August 4, 2009 - Housing Starts Continue To Increase In Volume
Tuesday, July 14, 2009 - National Sales Go Up In The 2nd Quarter
Tuesday, July 14, 2009 - National Sales Go Up In The 2nd Quarter
Monday, July 6, 2009 - Market Sales Reach Near Record Levels In June
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