The Canadian office market tightened in 2019 and a repeat performance is expected next year, according to a recent report by Canadian investment firm Morguard, which has a positive outlook on the nation’s retail, industrial and apartment sectors. In its “2020 Annual Economic Outlook,” Morguard found that national office vacancy rate declined in the third quarter of 2019 to 11%, from 12.4% the year before. During that period, the average vacancy rate for suburban office markets fell 210 basis points to 12.6%, while downtown office markets recorded a 210-basis-point decline to 9.8%. “Generally positive demand patterns” driving these declines stemmed mostly from technology, shared workspace companies and traditional business sectors, according to Morguard. “A repeat of office property performance trends is projected over the near term,” the report states. “Conditions will be tight in most cities, except for Edmonton and Calgary where vacancy will hold near the record-high. Downtown vacancy in most regions will remain close to the cycle low, offering a few alternatives for tenants. Upward pressure on rents will also continue, given shortages of high-quality space.” The full report is available to download on its website. (Morguard)
It’s a very happy holiday season for employees of Baltimore-based commercial real estate investment firm St. John’s Properties. The company handed out $10 million in bonuses to its nearly 200 employees, with each individual bonus averaging $50,000. St. John’s issued the checks, decked in crimson envelopes, as a reward after the company achieved its 2019 goal of developing 20 million square feet of warehouse, office, retail and flex industrial space across 8 states. (Baltimore Business Journal)
Life sciences REIT Alexandria Real Estate Equities is digging deeper into the techy haven of Palo Alto, California, spending $291 million for a 24-acre parcel of land adjacent to land owned by Google. The parcel is home to a set of roughly 60-year old buildings located at 3825 and 3875 Fabian Way. The purchase follows about $250 million of acquisitions made by Alexandria in Palo Alto since 2018. (The Mercury News)
More News to Note:
Some Operators of Senior Living Properties are Investing into Workforce Housing for Their Employees
Buzzing Mixed-Use Property in Austin, Texas, Could Sell for $275M
New York-based Multifamily Exec Shares his Thoughts on 2020 Opportunities
