Tag Archives: commercial real estate

TARGET Coming To Waterloo, London, Cambridge, Guelph, Stratford & Fergus

Big news for the Retail market in WATERLOO Region:

Target Opening in Waterloo, Cambridge, Guelph

That’s right – Target is coming to South Western Ontario in a BIG way!

There are five stores opening within a quick drive of Waterloo Region:

Conestoga Mall

Cambridge Centre

175 Stone Road West, Guelph

Gates of Fergus

Stratford Mall

Plus, 2 in London (Masonville and Westmount), several in the GTA and 2 in Hamilton.

None of the Zellers in Kitchener are being converted in the first round of Target Stores.

This is great news for the local COMMERCIAL REAL ESTATE market, and comes on the heels of the announcement of Apple’s new store in Waterloo.

Here is the full list of Target stores announced in the first round:

The rest of the stores in Canada are as follows:

Alberta
•       Chinook Centre, Calgary
•       Forest Lawn Shopping Centre, Calgary
•       Market Mall, Calgary
•       Shoppes at Shawnessy, Calgary
•       Signal Hill Centre, Calgary
•       Sunridge Mall, Calgary
•       Bonnie Doon, Edmonton
•       Kingsway Garden Mall, Edmonton
•       Mill Woods Town Centre, Edmonton
•       Prairie Mall, Grande Prairie
•       Bower Place, Red Deer
•       St. Albert Centre, St. Albert
•         Sherwood Park Mall, Sherwood Park

British Columbia
•       Abbotsford Power Centre, Abbotsford
•       Metropolis at Metrotown, Burnaby
•       Discovery Harbour Shopping Centre, Campbell River
•       Cottonwood Mall, Chilliwack
•       Coquitlam Centre, Coquitlam
•       Driftwood Mall, Courtenay
•       Tamarack Mall, Cranbrook
•       Scottsdale Mall, Delta
•       Willowbrook Shopping Centre, Langley
•       Haney Place Mall, Maple Ridge
•       Nanaimo North Town Centre, Nanaimo
•       Pine Centre, Prince George
•       Oakridge Shopping Centre, Vancouver
•       Village Green Mall, Vernon
•       Tillicum Mall,  Victoria

Manitoba
•       Shoppers Mall, Brandon
•       Grant Park, Winnipeg
•       Kildonan Place Shopping Centre, Winnipeg
•       Polo Park Shopping Centre, Winnipeg
•       Southdale Centre, Winnipeg

New Brunswick
•       McAllister Place, Saint John

Newfoundland and Labrador
•       Corner Brook, Corner Brook
•       Cabot Square, St. John,s

Nova Scotia
•       Bedford Place, Bedford
•       Mic Mac Mall, Dartmouth

Ontario
•       Durham Centre, Ajax
•       Aurora Shopping Centre, Aurora
•       Bramalea City Centre, Brampton
•       Shoppers World Brampton, Brampton
•       Trinity Common, Brampton
•       Burlington Mall, Burlington
•       Millcroft Centre, Burlington
•       Cambridge Centre, Cambridge
•       Woodbine Centre, Etobicoke
•       Gates of Fergus, Fergus
•       175 Stone Road W., Guelph
•       Centre Mall, Hamilton
•       South Hamilton Square, Hamilton
•       Hazeldean Mall, Kanata
•       Cataraqui Town Centre, Kingston
•       Lindsay Square Mall, Lindsay
•       Masonville Place, London
•      Westmount Shopping Centre, London
•       Milton Mall Shopping Centre, Milton
•       Erin Mills Town Centre, Mississauga
•       Square One, Mississauga
•       Meadowlands Shopping Centre, Nepean
•       Upper Canada Mall, Newmarket
•       1899 Algonquin Ave., North Bay
•       Centerpoint Mall, North York
•       Orillia Square Mall, Orillia
•       Place D,Orleans, Orleans
•       Five Points Mall, Oshawa
•       Bayshore Shopping Centre, Ottawa
•       Billings Bridge Plaza, Ottawa
•       RioCan St. Laurent, Ottawa
•       Hillcrest Mall, Richmond Hill
•       Bridlewood Mall, Scarborough
•       County Fair Mall, Smiths Falls
•       Niagara Pen Centre, St. Catharines
•       Stratford Mall, Stratford
•       Sudbury Supermall, Sudbury
•       Intercity Shopping Centre, Thunder Bay
•       Cloverdale Mall, Toronto
•       Shoppers World Danforth, Toronto
•       East York Town Centre, Toronto
•       Flamborough Power Centre, Waterdown
•       Conestoga Mall, Waterloo
•       Taunton Gardens Power Centre, Whitby
•       Devonshire Mall, Windsor

Prince Edward Island
•       Charlottetown Mall, Charlottetown

Quebec
•       Galeries d,Anjou, Anjou
•       Faubourg Boisbriand, Boisbriand
•       Carrefour Angrignon, Lasalle
•       Mega Centre Notre-Dame, Laval
•       Galeries Chagnon , Levis
•       Place Longueuil, Longueuil
•       Place Alexis Nihon, Montreal
•       Place Vertu, Montreal
•       Terrarium Shopping Centre, Pointe Claire
•       Les Galeries De La Capitale, Quebec City
•       Place Fleur De Lys, Quebec City
•       Place Laurier, Quebec
•       Le Carrefour Rimouski, Rimouski
•       Promenades Saint-Bruno, Saint-Bruno-de-Montarville
•       Carrefour Saint-Georges, Saint-Georges
•       Carrefour Richelieu,  Saint- Jean sur-Richelieu
•       Carrefour du Nord, Saint Jerome
•       Carrefour de L,Estrie, Sherbrooke
•       Les Rivieres Shopping Centre, Trois Rivieres

Saskatchewan
•       Northgate Mall, Regina
•       The Centre, Saskatoon

Market Update for Kitchener Waterloo Real Estate MLS

 Monthly/Yearly Kitchener-Waterloo Real Estate MLS Stats for March 2010 – Residential KW real estate sales UP 47.1% and 52.3% for the year.

Best March EVER with 731 homes sold in Kitchener Waterloo

Click play to watch:
Days on market is down from 55 to 43 for the year.

Sales to active ratio 25.8% was 16.2% in 2009, meaning 1 in 4 listed homes is selling each month, or that we currently have a 4 month supply of listings.

Sales$ to list$ ratio was 98.4% – it was 97.7% 2009. That means that the average home for sale in Waterloo ended up selling for 98.4% of the price it was listed for – so on average, a home listed for sale at 200K is selling for $196,800

Average sale price for a detached home is up 14.2% to $322,974 for the year.

Average sale price for a semi-detached house in Kitchener Waterloo is also up 6.1%, to $213,602 for the year.

Average sale price for freehold townhomes down 8.9% to $228,768 for the year.
New listings up 23.2% for the month to 1133 and number of listings for the year 2892 is up 13.5%.

In terms of the Condo market in Kitchener Waterloo, there were 117 condos sold in march, (MLS areas 1,2,3 & 4), a 51.9% increase from march 2009

Why has March been so busy?

It’s a good question, and I think there are two main reasons, relating to the way you can finance properties.

1) New CMHC Mortgage Rules

-As of April 19, people will now have to be able to qualify for a more expensive fixed rate loan, even if they choose a variable rate.

-The new mortgage rules in Canada (see: How will CMHC’s new mortgage rules impact real estate investors in Canada?) that is having the biggest impact, I think, is that Real Estate Investors will have to put down (in most cases) 20% per rental property, whereas now that minimum downpayment rate is 5%. Investors looking to get into the market may be rushing to do so before the rules change

2) Interest Rates Going Up!

I love cheap money, but rates have nowhere to go but up (and that’s actually healthy for our economy). People know that if they buy a house in 6 months, and rates have gone up, that home will cost them more money, even if the price is the same,

If you have any questions about the Kitchener Waterloo Real Estate market, contact me at Benjamin@BenjaminBach.com or 519 772 4376

Understanding Investment Real Estate Terms

One of the questions I get a lot is “whats the cap rate on this one?”  Real Estate Investors looking to gauge their return will often use the cap rate as a rule of thumb, a quick (but very limited) statement of value. 

What is a cap rate?  Is it a good indicator for the return you hope to generate on your return? Is there a better figure to look at?

This video takes a look at these questions, so we can better understand some commercial real estate terms

Watch the video here: Investment Real Estate Terms: Cap Rate & Cash on Cash Return or http://www.youtube.com/watch?v=5VfCIN-SqNI

Cap Rate, or capitalization, expresses the ratio between the net operating income a property produces, and the value.  It shows up, based on income, what a typical investor (or ‘the market’) is willing to pay for the income the property produces. 

Cap rate = Net Operating Income / Price (or value)

When we’re evaluating properties and we want to determine what we’ll pay for a certain apartment building, we will rework the formula to look like this:

Value = Net Operating Income / Market (or desired) Cap Rate

Cap rate does not take into the financing available, so unless you are buying a property in CASH, that is, without a mortgage, you’re going to want to factor in the cost of debt into your return calculations.

That brings us to Cash on Cash return, which is:

Cash Flow Before Taxes / initial investment

We calculate Cash Flow Before Taxes by:

Gross Rent – owner’s operating expenses – mortgage payments = Cash Flow Before Taxes.

Cash on Cash gives you a more precise return, because it accounts for the cost of the debt we use to purchase the property

If you have any questions about commercial and investment real estate in Kitchener Waterloo, Ontario, send me an email to Benjamin AT BenjaminBach.com, call me at 519 772 4376, or @benjaminbach on twitter. I’d love to connect with you!