Oct 23

Will the Current Stock Market Plunge Impact Real Estate Investing?

Written by: Richard Crenian

Richard CrenianNews headlines have been buzzing with alerts about the latest stock market plunge. While this may be a temporary slump in the stock market, analysts have been predicting as much as a 60 per cent dive in stock prices for some time. It’s difficult to estimate a precise moment, but the current fundamentals of the stock market suggest that a steep sell-off is inevitable.

Money markets have already been reacting to the mayhem with mortgage interest rates reportedly edging even further down. This creates significant opportunities for Canadian investors to expand in commercial property acquisitions with low rate financing, which will enhance the property’s cash flow and NOI.

Existing commercial property owners can find lower rates ideal for restructuring debt leverage to improve investment property performance. Individual investors can also find it to be an ideal moment for refinancing their homes and even accessing additional capital to invest.

Posted in Commercial Real Estate, Investing Alberta, real estate investment, Richard Crenian
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Oct 23

Smart Leasing Strategies for Canadian Property Investors

Written by: Richard Crenian

Richard Crenian

Many Canadian retailers are fighting for space in Canada’s top markets like Edmonton. Some commercial centers, such as the West Edmonton Mall and Calgary’s Chinook Centre have even been reportedly combating each other for brand name tenants.

Attempting to draw big name tenants and offering exclusivity has long been common practice in retail property investment and management, but this may not be the most profitable strategy going forward.

Historically, lower demand for retail space used to dictate that retailers could demand exclusivity in their domain within a shopping centre and landlords would oblige. However, this is quickly changing, especially in markets such as Alberta where retailers are competing with each other to secure floor space.

Big names are desirable, but they can also present issues. For example, well-known retailers may already have an extensive e-commerce presence. This can become a disadvantage, as it can reduce in-store sale performances and additional traffic to the shopping centre.

Furthermore, popular retailers are not always the most profitable tenants due to their negotiating power and prestige. Competing for these tenants gives the larger retailers more negotiating power, thus decreasing the landlord’s profit even further.

In order to combat this, landlords should diversify their tenants. Local and boutique tenants, especially stores revolving around services and food, can prove to be just as profitable as big name tenants.

Posted in Canadian Economy, Commercial Real Estate, Richard Crenian
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Oct 23

Alberta’s Startup Entrepreneurs Can Benefit from Investing in Properties

Written by: Richard Crenian

Richard Crenian

According to Benjamin Tal and a new CIBC World Markets report, Alberta remains the “most favourable place for small business to flourish.” A recent infographic via Medium, documents a dramatic and exponential rise in new business startups and investment activity in Edmonton, flowing through 2014. Popular pitching and funding platform AngelList listed 87 startups and almost 4,000 angel investors in Edmonton.

However, while tech and startups are hot, there are many good reasons for angel investors and entrepreneurs to be prioritizing commercial real estate investments right now too.

For a start, these small businesses need to secure and maintain affordable office spaces going forward. Whether they remain boutique-sized, work in co-working office spaces or plan to expand into retail storefronts, one of the best ways for them to ensure survival in this rapidly appreciating commercial real estate market is to own a slice of it.

Many might not be able to afford or justify acquiring a whole office building, office condo, or shopping plaza, but they could utilize partnerships to own part of a building without having all the obligations. This will also provide them the benefit of sharing the wealth created from the lift in values.

For many it can be a strategy to pull in additional income, depending if they sublet part of the building or invest close to home.

 

Posted in Canadian Economy, Commercial Real Estate, Edmonton, Richard Crenian
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Oct 22

Commercial real estate investing in Canada

Written by: Richard Crenian

July 22, 2014 - Optimistic CanadiansCanadian home sales fell for the first time in nine months. However, despite this drop in price, combined with the prospect of higher interest rates and assertions that Canada’s housing boom is too dependent upon large markets, the strong Canadian housing market is driving a prospering retail property investment sector.

Sears Canada Downsizing

For years, Sears Canada’s struggle for profitability was underpinned by the failure to capitalize on their flagship location in Toronto’s Eaton Centre, which was opened in 2000 after buying assets from then-failing department store chain Eaton’s. Since June & October 2013, they have raised almost $600 million by closing the following six locations and arranging a sale of their leases to their landlords:

  • Yorkdale Shopping Centre in Toronto, ON
  • Square One Shopping Centre in Mississauga, ON
  • Sherway Gardens in Toronto, ON
  • London-Masonville Place in London, ON
  • Markville Shopping Centre in Markham, ON
  • Richmond Centre in Richmond, BC

U.S. Retailers Look North Click here to read more.. »

Posted in Canadian Economy, Commercial Real Estate, Richard Crenian
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Oct 17

Mobile Shopping Boosting Retail Investments

Written by: Richard Crenian

UntitledA new report shows that almost 80 per cent of Canadians are now using smartphones to shop and make their purchases.

Furthermore, coverage of the latest surveys by the Edmonton Journal shows that 79 per cent of Canadians between the ages of 18 and 29 years old and as many as 77 per cent of those aged 25 to 54 are using mobile devices in conjunction with shopping in Canadian retail stores.

While 10 per cent of the surveyed Canadians have used mobile payments, less than a quarter of shoppers say they feel comfortable using their smartphones to make payments, rather prefer  to use credit cards and cash in stores. Click here to read more.. »

Posted in Commercial Real Estate, real estate investment, Richard Crenian
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Oct 17

How to Finance Your Next Commercial Property Investment In Canada

Written by: Richard Crenian

UntitledThere have been no better time than now to capitalize on the opportunities in Canada’s commercial real estate market. Values and demand are both trending up and interest rates remain low.

Here are some ideas to look at when analyzing gow to fund new investments in the current market.

Cash Purchases

Many Canadians are currently flush with cash or have cashed out other types of investments to help restructure and optimize their portfolios. Cash can be a great asset to have when capitalizing on attractive investment opportunities, as it enables investors to negotiate from a position of strength and achieve above average returns – all while retaining the benefits of a solid equity position.

It’s always wise to keep some cash on hand to retain liquidity and ensure diversification across your portfolio.

 

Commercial Mortgage Loans in Canada Click here to read more.. »

Posted in Canadian Economy, Commercial Real Estate, Richard Crenian
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Oct 17

How Canadian Retail Property Investors Can Boost Their Returns Now

Written by: Richard Crenian

UntitledWhat can Canadian retail property investors do to elevate their returns now?

Commercial property returns in Alberta and specifically Edmonton are already very healthy. However, it always pays to get ahead of the curve and maximize margins while the opportunity to get ahead is there.

Here are nine ways retail property investors in Canada can improve on their annual and lifetime returns;

1. Curb Appeal

Improving a shopping plaza’s curb appeal, including signage can go a long way to attracting new tenants, earning loyalty from existing tenants and boosting traffic.

2. Parking Spaces Click here to read more.. »

Posted in Canadian Economy, Commercial Real Estate, Richard Crenian
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Oct 14

Ending 2014 Strongly

Written by: Richard Crenian

REDEV - Best Moves for Canadian Real EstateThe end of the year is coming fast. The moves Canadian property investors make now can make all the difference in maximizing 2014 portfolio performance and setting themselves up for a great 2015. Here are some steps that can help end 2014 strongly.

1. Capitalize on Seasonal Acquisition Opportunities

This time of year traditionally yields many attractive real estate acquisition opportunities. Asset prices may rise significantly as we move deeper into the fourth quarter. So take another look at what’s on the market and act accordingly.

2. Take Advantage of Improving Retail Performance

Retailers are headed for a significant boost as we approach the holidays, carrying them into the new year on positive results.

Increased sales mean more revenues and better rental income for retail property landlords. So look out of retail property investment opportunities and opportunities to increase rent or execute performance based lease provisions.

3. Position Properties for Better Dispositions Click here to read more.. »

Posted in Canadian Economy, Commercial Real Estate, Richard Crenian
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Oct 10

Diverse Tenants

Written by: Richard Crenian

1Multi-tenant commercial properties can offer Canadian investors increased security and work to keep cash flow and investment returns consistent. The strategic diversification of tenants and property types can offer even more protection, higher yields and appreciating property values.

This concept of diversification is not as advantageous in multifamily apartment buildings where similar tenants work best together. In contrast, smart leasing and tenant selection in retail can enable investors to significantly elevate returns over other sectors and competing properties.

So what are some of the tenant types that shopping plaza landlords should be incorporating and what are their advantages and disadvantages?

Brand Name Anchor Tenants

Big name anchor tenants such as Target and Wal-Mart can be very desirable. Other retailers that can be placed in this category may be notable grocery store chains and to a lesser extent popular banks and fast food chains. Name familiarity helps bring in automatic traffic to the entire plaza or shopping center.

Founder of SkyFive Properties in Miami, Kaya Wittenburg, says this goes far beyond having a solid tenant to creating value in brand equity. At the extreme this has been seen in residential developments in South Florida where Porsche and Armani are attaching their names to buildings. Well recognized names in shopping, as with hotel flags can also help when it comes to obtaining attractive financing and can add real value to the price per square foot when it comes time to sell.

However, it is important to acknowledge that licensing names and national credit tenants can come with a high cost. Sometimes this can actually become counterproductive for yield seeking investors, as big name brands have a lot of negotiating power and can be very demanding.

Small Businesses

Small local businesses, boutique stores and startups are often seen as being riskier by experienced property investors and advisors. They typically have fewer back-up resources and may be more likely to fail or leave unexpected vacancies.

However, these tenants can also offer many advantages to commercial property landlords. Property owners have more negotiating power with these tenants, resulting in more opportunities for higher rents and performance-based bumps to rental rates. They can also bring new excitement and buzz to a shopping plaza.

Necessities

Necessity stores and services are the type of tenants that often fall in the middle of the large anchor tenants. Businesses such as auto service companies, pharmacies and coffee shops can bring in steady traffic to retail centers because they offer services that are necessary to the needs of the local community.

Commercial property investors should be careful about preconceived notions when it comes to tenants and property performance. By leveraging the points above, investors can further elevate their returns and create even more equity in their holdings.

 

Posted in Canadian Economy, Investing Alberta, real estate investment, Richard Crenian
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Oct 10

Five Steps to Consider When Expanding Your Bank Account

Written by: Richard Crenian

2Who wants to be a millionaire? Making smart moves and applying a few proven principles can help continually grow your bank account.

 

  1.  Diversify

Regardless of what type of investment you’re interested in pursuing, it’s always wise to stay diversified. There are few guarantees for the future, technology is constantly changing things and reshaping industries.

 

  1.  Don’t Rush

 There will certainly be moments when Canadians will need to move fast to get in at the right time. However, it’s not always a race. Newspapers are always covering stories of those that took unethical short cuts. Instead, opt for the steady path and leverage the benefits of compounding interests and returns.

Click here to read more.. »

Posted in Commercial Real Estate, Investing Alberta, real estate investment, Richard Crenian
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