commercial real estate real estate development infrastructure asset management 2013 Halton Real Estate Forum

Transcription

1 commercial real estate real estate development infrastructure asset management 2013 Halton Real Estate Forum Presented by Joshua Kaufman, Vice President Retail and Commercial Development

2 About DREAM Firelight Infrastructure Partners is part of the DREAM Group of Companies DREAM is a leader in multiple platforms Long history of generating superior returns for our investors DREAM Over $13 Billion of Assets Under Management Dundee International REIT Dundee REIT Dundee Industrial REIT Residential Land Housing Renewable Power German Office $2.3 Billion 15.4 million sf. Largest international REIT in Canada Canadian Office $7 Billion 24 million sf. Largest office REIT in Canada Owns 4% of the Canadian office space Canadian Industrial $1.6 Billion 16 million sf. Largest industrial REIT in Canada 9,000 Acres Single Family Homes / 3,300 Condos 250 MW

3 2013 Retail Headlines Source: Source: Financial Post Source: / July Source: The Star / Oct Source: globalnews.ca 3

4 What are we watching? EMPLOYMENT Unemployment Rate Employers POPULATION AND DEMOGRAPHICS Immigration Statscan And Other Projections Household Income And Consumer Spending HOUSING MARKET Affordability Housing Starts New And Resale LAND Availability Opportunities Price 4

5 What are we watching? Cont d CONSTRUCTION Costs Inflation RETAIL LANDSCAPE Competition Type And Size Opportunities Changing Tenant Requirements Vacancy Rates Local And Regional INTEREST RATES Borrowing Rate Trends INVESTMENT Institutions And Pension Funds Cap Rate Valuations PUBLIC POLICY 5

6 Cap Rates By Sector 10% 9% 8% 7% 6% 5% Mid-2013 OFFICE RETAIL INDUSTRIAL MULTI-HOUSING 6

7 Cap Rates - Retail 10% 9% 8% 7% 6% 5% Mid-2013 Retail Average Neighbourhood Regional Strip Power 7

8 Bank of Canada Prime Lending Rate 8

9 What s Changed? I. LAND ACQUISITIONS WHOLESALE OR RETAIL Serviced Or Unserviced Brownfield, Greenfield, And Greyfield BUY AND HOLD May Appear Crazy Today.Wait Until Next Year VENDORS EXPECTATIONS $1million Per Acre..Again! Something For My Kids Staying In Or Cashing Out Tax Implications CREATIVE ACQUISITION STRATEGIES Option Agreements Land Lease JV 9

10 What s Changed? II. PLANNING APPROVALS POLICY AND REGULATORY CHANGES Places To Grow And Growth Plan Official Plan Development Charges APPLICATION PROCESS ZONING AMENDMENTS AND SITE PLAN APPROVALS Timing Supporting Studies And Application Requirements Discussions Required With The Municipalities And The Agencies Early In The Process PUBLIC / PRIVATE PARTNERSHIP WE ARE IN THIS TOGETHER Meet Regularly Encourage Pre-application Meetings Speak With Economic Development And Review Development Incentives Follow The Growth 10

11 What s Changed? III. LEASING Suburban Vs. Urban The Americans Are Here! Target, Nordstroms, Saks Fifth Avenue Who Else Is Coming? Outlet Malls Gaining Momentum Premium Outlet And Tanger/Riocan Megamall Or Neighborhood Centre? Trade Area s Expanding And Tenants Shrinking Rental Rates Relatively Unchanged Flexibility Required In Existing Centres Consolidation Within The Industry E-commerce Impact 11

12 What s Changed? IV. SITE DESIGN AND CONSTRUCTION PARKING Ratios decreasing Municipality vs. Tenant Conflict? LANDSCAPING Percentages increasing Municipalities encouraging green development standards Bioswales and site infiltration RETAIL BUILDINGS Pedestrian scale/street orientated Elevation enhancement Multi-level retail? MIXED USE 12

13 What s Changed? IV. SITE DESIGN AND CONSTRUCTION CONT D OPPORTUNITIES FOR INTENSIFICATION Build Up Not Out Smaller Sites Provide Opportunities Infill Vacant And Redevelopment Sites Plan For The Future Underground Stormwater Management Systems CONSTRUCTIONS COSTS Consistent Escalation Take Advantage Of Off-peak Tendering Value Engineering Where Possible Innovative Building Materials And Techniques 13

14 CASE STUDY : TORONTO PREMIUM OUTLETS IN THE TOWN OF HALTON HILLS

15 THE PLAYERS THE DEVELOPERS CALLOWAY REIT/SMARTCENTRES SIMON PROPERTIES THE CONTRACTORS PCL THE ARCHITECTS THE COLLABORATIVE INC. PETROFF PARTNERSHIP ARCHITECTS TERRAPLAN LANDSCAPE ARCHITECTS THE MUNICIPALITIES TOWN OF HALTON HILLS REGION OF HALTON THE AGENCIES CONSERVATION HALTON MINISTRY OF TRANSPORTATION UNION GAS

16 THE LOCATION

17 MY INITIAL VISION

18 THE VISION

19 THE VISION

20 THE OPPORTUNITY Investment in the Town of Halton Hills of approximately $217 million Create over 500 new full and part time jobs Local and Regional Construction Jobs over 2 years Annual taxes of approximately $4.8 million upon project build out Catalyst for additional development within the Town and specifically the 401/407 Gateway Corridor

21 THE CONSTRUCTION

22 THE CONSTRUCTION

23 THE CONSTRUCTION

24 THE REALITY

25 THANK YOU Q&A 25