Canadian commercial real estate is setting some trends for innovation if the recent BOMA International Conference & Expo, which took place in Nashville, is any indicator. Of the 15 assets that won major awards, four of them were located in Canada.
They won in some pretty serious categories, too: Industrial Office Building, Medical Office Building, Retail Building and Over One Million Square Feet.
Since we haven’t reported on our neighbors to the North much recently, it’s a good time to take a brief look at each property and the overall commercial real estate market in Canada.
Kennedy Matheson Industrial Complex
This was the industrial office building winner. Operated by Menkes, the Kennedy Matheson Industrial Complex, in Mississauga, Ontario, is made up of three buildings totaling 624,425 square feet and has been 100 percent leased for about eight years. The asset also has a number of green features, including outdoor LED bulbs and back flow preventers in its sprinkler rooms.
East Calgary Health Centre
The Medical Office winner, East Calgary [Alberta] Health Centre, was built in 2012 and is operated by Bentall Kennedy, which runs several commercial real estate assets throughout North America in various asset classes.
CF Toronto Eaton Centre
One of the most famous shopping centers in Canada, CF Toronto Eaton Centre won for Retail. Owned by REIT Cadillac Fairview, and constructed in 1977, the mall is 1.5 million square feet with more than 250 stores, including a major Hudson’s Bay, Nordstrom and H&M.
Also owned by Cadillac Fairview, the TD Centre is a multi-use development that totals 4.3 million square feet. It includes office towers, as well as dozens of stores and eateries. The asset also boasts a number of sustainability benefits, including energy and waste management, conservation and recycling programs and tenant wellness.
Canada CRE Continues Strong Streak
Canada commercial real estate outperformed last year and expected to do the same in 2017, according to a JLL report. There were $34.7 billion in office transactions in 2016, a record for the country, and cap rates for its highest-end office properties were just as strong as New York City, London, Shanghai and other global gateway metros. Toronto has one of the lowest vacancy rates for downtown offices in North America, and Montreal and Vancouver are catching up. Limited supply, increased demand and asset innovation seem to be paving the way in Canada, so don’t be surprised if next year’s BOMA conference features more strong assets from the North.