REGINA — Commercial realtor Avison Young says the impact of lower oil
prices on commercial and industrial real estate in Regina remains
“undetermined” at this point.
But in its 2015 market forecast,
issued this week, the firm says the Regina market is expected to perform
well, thanks to large, multi-year development projects including the
South Regina bypass, the city’s waste water treatment plant, new
university residences plus the $1-billion downtown revitalization
initiative (which includes a new stadium and development of other
structures on land opened up by the future demolition of Mosaic Stadium
at Taylor Field and the CPR land north of downtown Regina).
As well, the city’s population is expected to grow this year despite “an ongoing shortage of affordable housing for low-to-middle income earners.”
“Lower crude prices are definitely bad news for Alberta, but it’s “To Be Determined” for Saskatchewan,” said Richard Jankowski, the firm’s Regina managing director, noting that Saskatchewan not only has one of the most diversified economies in Canada, but traditionally competes with B.C. for having the economy least dependent on exports to the U.S.
Looking at office space, Avison Young expects a balanced market for the next few years with new construction (including Agriculture Place and a building new the Regina General Hospital) offset by consolidation of government requirements and the improvement of previously non-competitive space.
That also suggests that net lease rates will remain stable for good-quality office space, though the report noted that Class B space recently saw a “retrenchment” in price and incentives in order to attract tenants.
On the retail front, it expects the arrival of new tenants — Canadian Brewhouse, McDonalds, Ricky’s All-Day Grille, SaskTel and Willow Park Wine & Spirits — next year in Grasslands, which it adjudged the city’s premier retail destination.
It contrasted that with the eastern retail corridor, which last year saw only minimal leasing activity because new development land in it is limited.
The local inventory of industrial space was 2.1 per cent last year, with a “modest” increase expected in 2015, it said, noting construction in the expanded Ross Industrial Park, the Global Transportation Hub, the Parker Industrial Park (northeast of Regina in the Rural Municipality of Sherwood) plus the Carson Energy Business Park (east of Regina north of the Trans-Canada Highway) and the Great Plains Industrial Park near White City.
The investment market for property is expected to continue “relatively slow”.
Looking at the province’s economic big picture, Avison Young sees what it calls “mixed messages on growth” with declines last year in mining activity and agricultural income, the latter occasioned by a 2014 crop that was overshadowed by 2013’s unexpectedly large harvest.
“The economy is expected to rebound in 2015, based on a resumption of more typical production levels in the mining and agricultural sectors, and higher exports of manufactured goods due to a weaker Canadian dollar, while the impact of lower oil prices remains undetermined.”
As well, the city’s population is expected to grow this year despite “an ongoing shortage of affordable housing for low-to-middle income earners.”
“Lower crude prices are definitely bad news for Alberta, but it’s “To Be Determined” for Saskatchewan,” said Richard Jankowski, the firm’s Regina managing director, noting that Saskatchewan not only has one of the most diversified economies in Canada, but traditionally competes with B.C. for having the economy least dependent on exports to the U.S.
Looking at office space, Avison Young expects a balanced market for the next few years with new construction (including Agriculture Place and a building new the Regina General Hospital) offset by consolidation of government requirements and the improvement of previously non-competitive space.
That also suggests that net lease rates will remain stable for good-quality office space, though the report noted that Class B space recently saw a “retrenchment” in price and incentives in order to attract tenants.
On the retail front, it expects the arrival of new tenants — Canadian Brewhouse, McDonalds, Ricky’s All-Day Grille, SaskTel and Willow Park Wine & Spirits — next year in Grasslands, which it adjudged the city’s premier retail destination.
It contrasted that with the eastern retail corridor, which last year saw only minimal leasing activity because new development land in it is limited.
The local inventory of industrial space was 2.1 per cent last year, with a “modest” increase expected in 2015, it said, noting construction in the expanded Ross Industrial Park, the Global Transportation Hub, the Parker Industrial Park (northeast of Regina in the Rural Municipality of Sherwood) plus the Carson Energy Business Park (east of Regina north of the Trans-Canada Highway) and the Great Plains Industrial Park near White City.
The investment market for property is expected to continue “relatively slow”.
Looking at the province’s economic big picture, Avison Young sees what it calls “mixed messages on growth” with declines last year in mining activity and agricultural income, the latter occasioned by a 2014 crop that was overshadowed by 2013’s unexpectedly large harvest.
“The economy is expected to rebound in 2015, based on a resumption of more typical production levels in the mining and agricultural sectors, and higher exports of manufactured goods due to a weaker Canadian dollar, while the impact of lower oil prices remains undetermined.”
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