2012 Global Market report - NAI Global

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Canada sectIon contents Calgary, Alberta, Canada Edmonton, Alberta, Canada Vancouver, British Columbia, Canada Victoria, British Columbia, Canada Halifax, Nova Scotia, Canada Ottawa, Ontario, Canada Toronto, Ontario, Canada Montreal, Quebec, Canada Regina, Saskatchewan, Canada 43
Calgary, Alberta, Canada Edmonton, Alberta, Canada Contact NAI Commercial Calgary +1 403 214 2344 Country Data Area (Sq Mi) GDP Growth GDP 2011 (US$ B) GDP/Capita (US$) Inflation Rate Unemployment Rate Interest Rate Population (Millions) 3,855,100 2.7% $1,632.89 $47,340.29 2.0% 7.5% 1.0% 34.493 Calgary is the largest city in Alberta with a population closing in on 1,100,000. It is located in the southern half of Alberta, just two hours north of the US border and one and a half hours east of the Rocky Mountains. Calgary is a distribution center for western Canada as well as home to the head office city for the Alberta Oilsands. 2011 was a recovery year in Calgary as projects are taken off the shelf and vacancy rates return to historical averages. Calgary’s downtown office market is on the verge of eclipsing 40,000,000 SF due to the development of over 10,000,000 SF in the last six years. This unprecedented building boom had caused vacancy rates to climb to a high of 14% in the CBD and 22% in the suburban markets/beltline, leaving a total of +/-9,000,000 SF vacant in 2009. 2011 has proven to be an exceptional recovery year for the market with the absorption of over 2,000,000 SF. Buoyed by high oil prices and reduced rental rates, office absorption has now eclipsed 3,000,000 SF in the last 24 months and shows no signs of easing. There is approximately 32,000,000 SF of retail premises in Calgary, boasting a vacancy rate of approximately 5%. New construction underway equals approximately 300,000 SF with another 200,000 SF of new construction anticipated over the next six months. Significant news in the retail sector includes; the acquisition of Zellers by Target, acquisition of Sport Chek by Canadian Tire and the emergence of American retailers such as Five Guys Burger and Fries, Buffalo Wild Wings and the potential for more including Nordstrom’s, Walgreen’s and Big Lots Inc. Calgary’s industrial market has been relatively stable over the past several years with vacancy rates steadily decreasing to just over 4%. With minimal new developments commenced, it is forecasted that vacancy rates will continue to decline and rental rates will increase. Average rental rates for space start at $6/SF for larger areas and increases to $9 to $10/SF for smaller areas. The industrial market consists of +/-110,000,000 SF of space with +/- 2,000,000 SF planned for construction within the next 12 month. Calgary’s outlook is extremely positive and poised for strong growth in the coming years, provided the Alberta Oilsands remain a globally accepted source of oil. The outlook for office, industrial and retail are all well balanced with land supplies available, construction prices back in balance and steady demand by all tenants across the board. Contact NAI Commercial Edmonton +1 780 436 7410 Country Data Area (Sq Mi) GDP Growth GDP 2011 (US$ B) GDP/Capita (US$) Inflation Rate Unemployment Rate Interest Rate Population (Millions) 3,855,100 2.7% $1,632.89 $47,340.29 2.0% 7.5% 1.0% 34.493 Edmonton continues to expand with an influx of US retailers, while the industrial and office markets, with historically low vacancy rates, are dealing with tenant's global concerns and their continued state of caution. $162 billion in projects have been scheduled in Edmonton and Northern Alberta. Oil, Gas and Oilsands projects make up 75% of this total. Edmonton is a staging ground for the north. The potential for growth is immensely supported by statistics, such as in the month of June 2011 there were more jobs created in Alberta than throughout the entire United States (22,000 vs. 18,000). The Investment market has experienced increased activity with mainly large scale transactions and there continues to be limited availability of small investment properties. Edmonton’s first new office tower in 20 years opened this past September. The first of four towers planned for the site, Epcor Tower is a 30 story, 618,000 SF building, home to Epcor, Capital Power and the Federal Department of Justice. This ‘Epcor Effect’ has resulted in a reduction in lease rates as landlords have become more competitive to offset the increased inventory available. The suburban office market is now under further pressure reducing rates as the increased inventory/vacancy downtown will provide an incentive for office tenants to relocate. Edmonton’s retail market remains strong and has seen a significant reduction to an already low vacancy. Target has paid $1.8 billion to buy over 200 Canadian Zellers department store’s leases. Big Lots Inc. purchased Liquidation World Inc. for their first expansion outside of the US through a network of 89 stores. American retailers Cabela’s Outfitters and Lowe’s Home Improvement opened their first locations in Edmonton. Industrial buyers and tenants have few options to choose from as market activity increases. Small lease bays are taken up quickly and few availabilities present themselves for 50,000 SF plus users. Industrial Land has also seen an increase in sales activity and a rebound in pricing. A sampling of sales on parcels from one to five acres this year shows an average price of $636,000 per acre versus $512,820 a year prior. Whether you blog, tweet or read the headlines, current real estate markets are viewed cautiously. If you consider the strength in retail, our first new office tower in two decades and the Oilsands projects, Edmonton remains a great market to invest. Calgary At A Glance conversion 1.01 cad = 1 us$ NET RENT/SF/YR US$ NET RENT/SF/YR low High low High Vacancy doWntoWn offIce New Construction (AAA) Class A (Prime) Class B (Secondary) suburban offIce New Construction (AAA) Class A (Prime) Class B (Secondary) IndustrIal Bulk Warehouse Manufacturing High Tech/R&D retaIl Downtown Neighborhood Service Centers Community Power Center Regional Malls Solus Food Stores CAD 30.00 CAD 40.00 $ 29.70 $ 39.60 2.50% CAD 22.00 CAD 30.00 $ 21.78 $ 29.70 5.70% CAD 12.00 CAD 22.00 $ 11.88 $ 21.78 10.60% N/A N/A N/A N/A N/A CAD 19.00 CAD 25.00 $ 18.81 $ 24.75 7.30% CAD 10.00 CAD 19.00 $ 9.90 $ 18.81 12.50% CAD 4.75 CAD 6.00 $ 4.70 $ 5.94 4.20% CAD 5.25 CAD 10.00 $ 5.20 $ 9.90 4.00% CAD 9.00 CAD 17.00 $ 8.91 $ 16.83 4.60% CAD 5.00 CAD 50.00 $ 14.85 $ 49.50 5.40% CAD 20.00 CAD 33.00 $ 19.80 $ 32.67 3.00% CAD 16.00 CAD 36.00 $ 15.84 $ 35.64 2.80% CAD 15.00 CAD160.00 $ 14.85 $ 158.42 4.20% N/A N/A N/A N/A N/A deVeloPment land low//acre High/acre low/acre High/acre Office in CBD CAD 4,500,000.00 CAD 13,000,000.00 $ 4,455,445.54 $ 12,871,287.13 Land in Office Parks CAD 600,000.00 CAD 1,000,000.00 $ 594,059.41 $ 990,099.01 Land in Industrial Parks Office/Industrial Land - Non-park CAD CAD 450,000.00 CAD 450,000.00 CAD 800,000.00 $ 445,544.55 $ 800,000.00 $ 445,544.55 $ 792,079.21 792,079.21 Retail/Commercial Land CAD 700,000.00 CAD 1,300,000.00 $ 693,069.31 $ 1,287,128.71 Residential CAD 100,000.00 CAD 4,500,000.00 $ 99,009.90 $ 4,455,445.54 Edmonton At A Glance conversion 1.01 cad = 1 us$ NET RENT/SF/YR US$ NET RENT/SF/YR low High low High Vacancy doWntoWn offIce New Construction (AAA) Class A (Prime) Class B (Secondary) suburban offIce New Construction (AAA) Class A (Prime) Class B (Secondary) IndustrIal Bulk Warehouse Manufacturing High Tech/R&D retaIl Downtown Neighborhood Service Centers Community Power Center Regional Malls Solus Food Stores CAD 26.00 CAD 40.00 $ 25.74 $ 39.60 7.10% CAD 20.00 CAD 28.00 $ 19.80 $ 27.72 7.10% CAD 12.00 CAD 21.00 $ 11.88 $ 20.79 7.10% CAD 22.00 CAD 27.00 $ 21.78 $ 26.73 7.10% CAD 18.00 CAD 22.00 $ 17.82 $ 21.78 7.10% CAD 12.00 CAD 18.00 $ 11.88 $ 17.82 7.10% CAD 5.00 CAD 8.00 $ 4.95 $ 7.92 3.00% CAD 6.25 CAD 10.50 $ 6.19 $ 10.40 3.00% CAD 6.25 CAD 10.50 $ 6.19 $ 10.40 3.00% CAD 18.00 CAD 37.00 $ 17.82 $ 36.63 1.80% CAD 16.00 CAD 35.00 $ 15.84 $ 34.65 1.80% CAD 24.00 CAD 40.00 $ 23.76 $ 39.60 1.80% CAD 30.00 CAD 150.00 $ 29.70 $ 148.51 1.80% N/A N/A N/A N/A N/A deVeloPment land low//acre High/acre low/acre High/acre Office in CBD Land in Office Parks N/A N/A N/A N/A N/A N/A N/A N/A Land in Industrial Parks Office/Industrial Land - Non-park Retail/Commercial Land Residential CAD 200,000.00 CAD 550,000.00 $ 198,019.80 CAD 325,000.00 CAD 725,000.00 $ 321,782.18 CAD 400,000.00 CAD 1,200,000.00 $ 396,039.60 CAD 65,000.00 CAD 850,000.00 $ 64,356.44 $ 544,554.46 $ 717,821.78 $1,188,118.81 $ 841,584.16 2010 Global Market Report n www.naiglobal.com 44
Page 1 and 2: 2012 Global Market report Values, t
Page 3 and 4: n n n table of contents General Inf
Page 5 and 6: Global Outlook US Year in Review As
Page 7 and 8: On the Road to Recovery % of Loss S
Page 9 and 10: 55% (1.1 million) owning and 45% (8
Page 11 and 12: short-term leases, the multifamily
Page 13 and 14: Alberta is home to Canada’s oil a
Page 15 and 16: Office The sovereign debt crisis an
Page 17 and 18: Area Type Q1 2010 Q2 2010 Q3 2010 Q
Page 19 and 20: obust telecom infrastructure and av
Page 21 and 22: egion’s cities. Nevertheless, lea
Page 23 and 24: For 2012, absorption in the commerc
Page 25 and 26: n us Highlights - northeast region
Page 27 and 28: n us Highlights - midwest region n
Page 29 and 30: n us Highlights - West region n Ari
Page 31 and 32: Adelaide, Australia Brisbane, Austr
Page 33 and 34: Sydney, Australia Beijing, China Co
Page 35 and 36: Shanghai, China Shenzhen, China Con
Page 37 and 38: Chennai, India Mumbai, India Contac
Page 39 and 40: Jakarta, Indonesia Tokyo, Japan Con
Page 41 and 42: Christchurch, New Zealand Wellingto
Page 43: Taipei, Taiwan Ho Chi Minh City, Vi
Page 47 and 48: Halifax, Nova Scotia, Canada Ottawa
Page 49 and 50: Regina, Saskatchewan, Canada Contac
Page 51 and 52: The Baltics (Latvia/Estonia/Lithuan
Page 53 and 54: Helsinki, Finland Paris - lle de Fr
Page 55 and 56: Tel Aviv, Israel Almaty, Kazakhstan
Page 57 and 58: Amsterdam, The Netherlands Oslo, No
Page 59 and 60: Moscow, Russia St. Petersburg, Russ
Page 61 and 62: Madrid, Spain Stockholm, Sweden Con
Page 63 and 64: Istanbul, Turkey Kiev, Ukraine Cont
Page 65 and 66: Leeds, England, United Kingdom Lond
Page 67 and 68: Latin America sectIon contents Buen
Page 69 and 70: Rio de Janeiro, Brazil Sao Paulo, B
Page 71 and 72: San Jose, Costa Rica Contact NAI Co
Page 73 and 74: Guadalajara, Jalisco, Mexico Guanaj
Page 75 and 76: Mexico City, Mexico Contact NAI Mex
Page 77 and 78: Saltillo, Coahuila, Mexico San Luis
Page 79 and 80: Lima, Peru Caracas, Venezuela Conta
Page 81 and 82: Birmingham, Alabama Huntsville/Deca
Page 83 and 84: Little Rock, Arkansas Bakersfield,
Page 85 and 86: Oakland, California Orange County,
Page 87 and 88: San Francisco, California Ventura C
Page 89 and 90: Hartford, Connecticut Wilmington, D
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Page 93 and 94: Miami, Florida Ocala/Gainesville, F
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Tampa Bay, Florida Atlanta, Georgia
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Boise, Idaho Southeast (Idaho Falls
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Fort Wayne, Indiana Indianapolis, I
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Des Moines, Iowa Sioux City, Iowa C
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Baton Rouge, Louisiana Lake Charles
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Greater Portland, Maine Baltimore,
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Greater Springfield, Massachusetts
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Minneapolis/St. Paul, Minnesota Jac
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Billings, Montana Bozeman, Montana
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Omaha, Nebraska Las Vegas, Nevada C
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Portsmouth, New Hampshire Atlantic
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Ocean/Monmouth Counties (“Shore M
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Las Cruces, New Mexico Albany, New
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Westchester, New York Asheville, No
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Raleigh/Durham, North Carolina Farg
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Cincinnati, Ohio Cleveland, Ohio Co
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Oklahoma City, Oklahoma Tulsa, Okla
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Berks County, Pennsylvania Bucks Co
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Philadelphia, Pennsylvania Philadel
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Wilkes-Barre/Scranton/Hazleton, Pen
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Sioux Falls, South Dakota Chattanoo
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Memphis, Tennessee Nashville, Tenne
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Corpus Christi, Texas Dallas, Texas
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Houston, Texas Contact NAI Houston
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Salt Lake City, Utah Washington Cou
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Northern Virginia Seattle/Puget Sou
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Madison, Wisconsin Milwaukee, Wisco
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n Glossary n Acre Area of land equa
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