Southern Saskatchewan Real Estate Overview. Presented By: Peter Lawrek, B.A., AACI, P.App, Fellow

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1 Southern Saskatchewan Real Estate Overview Presented By: Peter Lawrek, B.A., AACI, P.App, Fellow

2 Brunsdon Lawrek & Associates Real Estate Appraisals and Advisory Services Offices in Regina and Saskatoon 22 Appraisers and we cover the whole province Residential, Commercial, Industrial, Multifamily, Agricultural, Reserve Fund Studies, Property Tax Assessment Appeals Peter Lawrek: Web Site: Saskatoon Office:

3 Peter Lawrek, B.A., AACI, P.App, Fellow Darren Bird, B.Admin., C.M.A.,AACI, P.App Samantha Lawrek, B.A., AACI, P.App Rob Lawrence, AACI, P.App Leanne McLeod, BBA, AACI, P.App Adam Robitaille, B.Comm., AACI, P.App Murray Grapentine, Appraisal Analyst Brent Lawrek, Appraisal Analyst Dustin Cross, B.A. CRA Rosanne Wood, B.A., CRA Erin Kendel, B.Comm., CRA Amber Reynolds, B.Admin., Candidate CRA

4 Regina Photo by Peter Scoular

5 Regina Local Economy & Real Estate Market The Regina economy is currently experiencing slow but steady growth. The overall real estate market is relatively good but not as strong as during the recent economic boom of After several years of substantial growth Regina is now in a slow growth stage. Economies of Regina & the whole province depend mainly on commodity prices. Oil, natural gas, potash & uranium are currently low priced. Agriculture is stable to relatively good.

6 Regina Serviced Land Prices Land Type Median Price Per Acre Major Arterial Commercial $1,500,000 Multifamily $1,000,000 Industrial $500,000 Industrial Outside City Limits (Septic Tank) $250,000 Hard to find Major Arterial Commercial for Sale

7 Number & Value of Building Permits Issued, Total, Regina, Historical Year Number Value ($000 s) , , , , , , , , , , , , , , , , , , , , , , , , , , (3 mths) ,671.5 Source: City of Regina, DevelopmentServicesDepartment

8 Housing Starts, Regina CMA, Historical Year Single Detached Multiples Total , , , , ,289 1,804 3, ,246 1,876 3, ,516 2, ,084 1, , (3 mths) Source:

9 Regina MLS Residential Sales (Area 1-5 within City) Year Sales , , , , , , , , (3 mths) 442 Source: Saskatchewan Matrix

10 Residential Buyer s Market. Highest demand is for low to mid-range homes.

11 Regina Median House Prices (Excludes Condominium) Sale Price Median Month of March 2007 $122, $215, $250, $283, $290, $285, $277, $282,750

12 Multi-Family Good demand by investors due to low interest rates. Vacancy rate 5.5%. (CMHC Rental Market Report Oct/16). Average rent of a twobedroom unit (new and existing) is $1,109 per month. Only fair demand by tenants due to increasing supply and rising vacancy. In last few years there has been substantial new construction of rental apartments and apartment condominiums. The market is now overbuilt so very few projects planned for 2017 and 2018.

13 Procter Garden 117 Procter Place 24 suites, wood frame, built in 1963 Sale Date: July 27, 2016 Sale Price: $3,036,000 Sale Price Per Suite: $126,500 Cap. Rate: 5.47%

14 Rainbow Towers 111 Lockwood Road 94 suites, 10 storey, built in 1970 Sale Date: April1, 2016 Sale Price: $16,000,000 Sale Price Per Suite: $170,213 Cap. Rate: 5.24%

15 Industrial / Warehouse Good demand by owner occupiers and investors especially for smaller buildings. Fair demand by tenants This market didn t get overbuilt. Therefore, although rents have softened vacancy is still low Q vacancy 2.04%. Q vacancy 3.01% Q vacancy 3.26% Source: Colliers Regina Industrial Market Report Regina Industrial Rents $10 - $14 psf

16 455 Maxwell Crescent 26,350 sf, built in 1981 Sale Date: November 2, 2016 Sale Price: $3,450,000 Sale Price PSF: $ Hodsman Road 44,003 sf, built in 2012 Sale Date: March 1, 2016 Sale Price: $8,220,000 Sale Price PSF: $ Cap. Rate: 7.20%

17 Office Good demand by investors but weak demand by tenants. Vacancy is rising due to new buildings constructed and weaker economy. Landlords are offering incentives to maintain face rents Vacancy Sept % August % Sept % Dec % Dec % Dec % Source: Harvard Real Estate Survey Regina Office Rents Median Class A New $36 psf Class A $23 psf Class B New $26 psf Class B $15 psf Class C $12 psf

18 Harbour Landing Business Park 4561 Parliament Avenue 38,975 sf, built in 2013 Sale Date: September 18, 2013 Sale Price: $15,300,000 Sale Price PSF: $ Cap. Rate: 6.40% Currently for sale as part of Dream Office Portfolio, Conditional Sale

19 Cornwall Professional Building th Avenue & 1750 Lorne Street 60,000 sf, built in , Renovated 2008 Asking Price: $11,250,000 Sale Price PSF: $188 Cap. Rate: 7.5%

20 Dream Saskatchewan Office Buildings 9 Buildings 502,000 sf total 6 in Regina (258,203 sf) 3 in Saskatoon (244,015 sf)

21 Retail Good demand by investors. Relatively good demand by tenants especially for high quality locations. Vacancy Rate December 31, % December 31, % December 31, % (Survey by Colliers International) Rental Rates New Older $30 - $35 psf $15 - $25 psf

22 New Retail Developments 1. Excess land developments in NW & SE Regina adjacent to Superstores 2. Development in Grasslands in SW Regina continues 3. New Aurora development Victoria Avenue East with Costco & Landmark Cinemas 8 as anchors. Opening spring acres. 4. New Acre 21 on Arcola Avenue (21 acres) 5. Horizons/Westerra, Dewdney Avenue west Regina 6. Capital Crossing, Pasqua Street & Rochdale Boulevard. North end of Regina. 60 acres.

23 Dome South Plaza 4426 Albert Street 21,828 sf, built in 1978 Sale Date: December 5, 2016 Sale Price: $4,960,000 Sale Price PSF: $ Cap. Rate: 6.50%

24 nd Avenue Major Tenant: Remax Crown Real Estate 20,964 sf, built in 1991 Sale Date: March 1, 2016 Sale Price: $4,475,000 Sale Price PSF: $ Cap. Rate: 6.55%

25 Yorkton Population 19,000 Generally weak real estate market but still a good investment for the long term due to agriculture, potash, canola crushing & some light manufacturing CMHC October 2016 Apartment Vacancy 5.1% 2 Bedroom Rent $904

26 239 Hamilton Road Sale Date: In-Contract Sale Price: $1,987,000 Size: 10,440 sf Built in: 2001 Sale Price PSF: $ Cap. Rate: 7.34%

27 Estevan & Weyburn Estevan population 11,500 Weyburn population 11,000 Depressed market due to 2014 oil price crash but it appears 2017 will show some improvement. Oil prices will be the key factor. Small buildings are still saleable. CMHC October 2016 Apartment Vacancy 2 Bedroom Rent Estevan 27.6% $1,000 Weyburn 20.26% $806

28 54 Escana Street, Estevan Sale Date: March 10, 2017 Sale Price: $840,000 Size: 12,096 sf Built in: 1984 Sale Price PSF: $69

29 5-22 nd Avenue South, Weyburn Sale Date: September 14, 2016 Sale Price: $600,000 Size: 9,000 sf Built in: 2008 Sale Price PSF: $67

30 Moose Jaw Population 34,000 Real estate market is not strong but it is stable. Close to Regina (only 75 Km) which restricts growth CMHC October 2016 Apartment Vacancy 3.3% 2 Bedroom Rent $890

31 5 & 39 Manitoba Street East Sale Date: June 8, 2016 Sale Price: $6,035,000 Size: Bank 6,493 sf Retail 14,935 sf Total 21,428 sf Built in: 1920 & 2008 Sale Price PSF: $ Cap. Rate: 6.89%

32 Swift Current Population 17,000 Generally weak real estate market but still a good investment for long term due to agriculture and some oil/gas sector. Construction of Chinook Power Station (fired by natural gas) has started and will be completed by October 1, Up to 500 jobs during construction and 24 workers to run the facility. This will be a short term boost to the economy. CMHC October 2016 Apartment Vacancy 9.2% 2 Bedroom Rent $827

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