Northern Saskatchewan Real Estate Overview. Presented By: Rick Brunsdon, AACI, P.App

Transcription

1 Northern Saskatchewan Real Estate Overview Presented By: Rick Brunsdon, AACI, P.App

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 Rick Brunsdon: Web Site: Regina Office:

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4 The Saskatoon Office Staff Rick Brunsdon, AACI, P.App Wayne Johnson, AACI, P.App Grace Muzyka, AACI, P.App Steven Thair, BA, AACI, P.App, LL.B Kimberly Maber, B.Comm, AACI, P.App Cameron Walker, B.Comm, AACI, P.App Janelle Baerg, B.Comm, AACI, P.App Amanda Conley, BA, Research Coordinator Don Junor, CRA Kristene Johnson, CRA Sandy Antonini, BA, JD, CRA

5 Saskatoon Local Economy & Real Estate Market The Saskatoon 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 Saskatoon is now in a slow growth stage. Economies of Saskatoon like the whole province depend mainly on commodity prices. Oil, natural gas, potash & uranium are currently low priced. Agriculture is stable to relatively good with a significant amount of the 2016 crop in west central Saskatchewan still to be harvested. Saskatoon has weathered the slow down in the uranium & potash sectors well

6 Saskatoon Serviced Land Prices Land Type Median Price Per Acre Highway & Suburban Commercial $1,100,000 Multifamily/Townhouse $1,000,000 Industrial $500,000 /$600,000 Industrial Outside City Limits $200,000/$250,000 Very Little Suburban Commercial Land for Sale

7 Number & Value of Building Permits Issued, Total, Saskatoon, Historical Year Number Value ($000 s) , , , , , , , , , , , , , ,196 1,082, ,020 1,089, , , ,327 1,020, , ,000 Source: City of Saskatoon

8 Housing Starts, Saskatoon CMA, Year Single Detached Multiples Total , , , , , , , , ,798 1,196 2, ,213 1,540 3, ,882 1,098 2, ,793 1,738 3, ,217 1,076 2, , , (3 mths) Source: cmhc-schl.gc.ca Historical

9 Residential Buyer s Market. Highest demand is for low to mid-range homes. Saskatoon Median House Prices (Excludes Condominium) Sale Price Median Month of March 2012 $217, $333, $226, $223,100

10 Multi-Family Good demand by investors due to low interest rates. Vacancy rate 10.3%. (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 OCR Range 4% - 6%

11 Industrial / Warehouse Good demand by owner occupiers and investors especially for smaller buildings. Fair demand by tenants Although rents have softened vacancy is still low 2014 vacancy 6.5% vacancy 7.5% 2016 vacancy 8.25% Source: Colliers Saskatoon Saskatoon Industrial Rents $8 - $12 psf OCR Range 5% - 7%

12 Office Weak demand by tenants. Vacancy is rising due to new buildings constructed, sublease space on the market and weaker economy. Landlords are offering incentives up to $50.00/sq.ft.to maintain face rents Vacancy Dec % Dec % Dec % Estimated Current 16.5% Saskatoon Office Rents 2014 $24 psf 2015 $21 psf 2016 $18 psf Suburban Office Rents $10.00 = $18.00 per square foot

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

14 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

15 New Retail Developments 1. Preston Crossing in final stage of build-out 2. Stonebridge in final stage of build-out 3. Blairmore in final stage of build-out 4. Dream s Brighton Neighbourhood land being serviced 5. Rosewood Arbus commercial area starting development, anchored by second Costco

16 Martensville & Warman Population 7,000 & 5,000 respectively Generally stable to strong real estate market as bedroom communities to Saskatoon Rental rates and cap rates similar to mid-range of Saskatoon rates

17 Prince Albert Population 43,100 Real estate market is stable. Cornerstone Retail Development nearing 100% build-out. This project has increased the retail trading area. CMHC October 2016 Apartment Vacancy 5.3% 2 Bedroom Rent $837 OCR Range 6% - 7% The Apartment market is showing increasing vacancy rates.

18 The Battlefords Population 17,000 Generally weak real estate market, still a good investment for long term due to agriculture and some oil/gas sector. Construction of Northland Power Station (fired by natural gas) was completed in October 1, This was a short term boost to the economy and the market has returned to more historic norms. CMHC October 2016 Apartment Vacancy 10.6% 2 Bedroom Rent $796 OCR Range 6% - 7% The Battlefords receive strong competition in the retail sector as it is less than 1½ hours away from Saskatoon and Lloydminster.

19 Agricultural Land Values 25% 20% 19.5% Canadian farmland values: 5-year history 22.1% % change 15% 10% 14.3% 10.1% 7.9% 5% 0% Farmland Value Change 2016 Saskatchewan (Overall) 7.5% Region Comparisons North Western 10.3% North Eastern 9.3% East Central 0.0% West Central 7.8% South Western 16.6% South Eastern 0.0% *Source: 2016 FCC Farmland Values Report

20 Questions??

21 Thank you to our session sponsor! Information Services Corporation of Saskatchewan