OPPORTUNITIES AND CHALLENGES IN THE MONTRÉAL OFFICE MARKET: IS IT HEADING TOWARDS TENANT FAVOURABLE CONDITIONS?
This session will examine several major aspects of the Greater Montréal Area office market. Discussion will begin with some insights into corporate real estate expectations in today’s environment. How are accessibility to knowledge workers, transit, flexible workplaces, and quality of life considerations being balanced against location, costs and newer buildings? How are the downtown, midtown and suburban markets competing with each other? What are the tenants looking for in each of these sub-markets? How are new office developments reflecting the changes in occupant priorities? How strongly is LEED certification and greener buildings being embraced by owners? How much new space is the market able to absorb from both new buildings along with the millions of square feet of former industrial space that has been converted to office? How large is subleasing market? At what pace is it growing? Are we now heading into tenant favourable conditions? Where are vacancy rates, cap rates and other underlying leasing and investment fundamentals heading at this time? What will most likely occur in this market in 2014 and beyond?
Andrew Bissett, National Director and Executive Vice
President, Jones Lang LaSalle
Lloyd Cooper, Vice Chairman, Cushman & Wakefield Ltd.
Richard Hylands, President, Kevric Real Estate Corporation
Sal Iacono, Senior Vice President, Development and Portfolio Management, Eastern Canada Portfolio,
The Cadillac Fairview Corporation Limited
Julie Martineau, Vice President, Leasing, Eastern Region, Ivanhoé Cambridge
DEBT FINANCING: WHERE ARE SPREADS HEADING? WILL IT CONTINUE TO BE ACCESSIBLE OR WILL IT PLAY HARD TO GET?
A panel discussion will focus on the debt market and examine what borrowers can expect for the remainder of 2014 and beyond. What impact are the Bank of Canada, Minister of Finance and OFSI’s concerns having on the lending practices of major banks? Are significant amounts of capital still attracted into the real estate? Are they finding accessibility through mortgage investment funds and secondary markets? Are pension funds attracted to some of the lending opportunities? What underwriting criteria are lenders in Montréal using in 2014? How are they assessing potential deals and pricing them? Are there any property classes that they are avoiding or reducing their exposure to? How available are mezzanine financing and other secondary sources of debt? How are they being priced? Discussion will also briefly examine construction financing for condominiums and loans for smaller assets and smaller projects. How concerned are lenders about the housing market?
Pierre Leduc, Vice President, Capital Markets, Colliers
René Demers, Associate Vice President, Real Estate Financing, National Bank
Vince Faustini, Senior Director, Québec, Equitable Bank
Nicolas Mastandrea, Vice President & Partner, Murray & Company
Andrée Roy, Senior Director, Real Estate Investments, Otéra Capital
Lyne Roy Payette, Vice President, Commercial Mortgages, Desjardins Asset Management
INDUSTRIAL REAL ESTATE MARKET: IN WHAT DIRECTION ARE DEVELOPMENT, LEASING AND INVESTMENT TRENDS HEADING?
Last year was one of the best for the Montréal industrial market with cap rates continuing to compress and occupancy levels rising.The session will open with a brief overview on current and projected investment trends, and vacancy and absorption rates in industrial real estate in the Greater Montréal Area. A comparison discussion will follow on off-island markets (e.g. the South Shore and Laval) vs. the challenges in more mature markets closer to the city (e.g. St. Laurent, Pointe Claire, Lachine, East End). Is new demand for industrial space growing and if so in which locations? Why are industrial assets attracting a wide spectrum of very strong investor interest? From whom and at what prices? Is the only development activity tenant initiated? What does the future hold for the older industrial properties that do not easily meet the needs of today’s users? Can they be sold for a premium to investors with redevelopment or renewal plans? What is the outlook on how the Montréal industrial market will perform over the next 12 months?
Yves Roy, Executive Vice President, Newmark Knight Frank Devencore
Michel Cohen, President, Vista Properties
Roberto Giglio, Director of Leasing, Bentall Kennedy (Canada) LP
Gil Kastner, Vice President, Leasing & Business Development, Landmark Properties
Michael Mikelberg, Managing Partner, The Luger Group
Richard Stern, Principal, Olymbec Corporate Group
THE DYNAMIC MONTRÉAL RETAIL MARKET: URBAN FORMATS, SUBURBAN DEVELOPMENT, INVESTMENT ACTIVITY, LEASING TRENDS
This session will examine the Greater Montréal retail market from the perspective of investors, developers, tenants and consumers. How is the supply and demand balance at this time with respect to the various types of retail formats being offered, tenant interest in this market, and consumer spending trends? What has been the impact of suburban retail projects like Quartier 1030? Are new urban retail formats emerging as a result of condominium and mixed-use projects in downtown Montréal? Will the revitalization of St. Catherines Street begin with the major projects by Angus Development, FTQ and Canderel? What plans do other retail owners have with respect to new projects or upgrading their existing properties? What new retailers have entered or are coming into this market? Are there any particular formats and development innovations growing in popularity? How many investment transactions are likely over the next twelve months? How is the leasing market absorbing the new space? Is there any evidence of an impact from online shopping?
Jean-François Grenier, Senior Director, Altus Group
Guy Charron, Executive Vice President, Operations - Retail, Cominar REIT
Éric Foster, Partner & Vice President, Leasing & Marketing, Carbonleo Story Builders
Michal Kuzmicki, Managing Partner, Brookfield Financial
Jim Murdoch, President, Real Estate Services, Canada, Oberfeld Snowcap Inc.
MIXED-USE DEVELOPMENT AND INTENSIFICATION IS PROJECTED TO BE THE TOP TREND IN CANADIAN CITIES IN 2014: HOW IS MONTRÉAL FARING?
The trend to inner city development activity continues to sweep across Canadian cities. Montréal is certainly no exception with a wide range of mixed-use developments occurring across the island. The evidence is very strong that successful cities need a vibrant mixed-use core where people gather and where commerce, culture, recreation, entertainment, education and inspiration meet. This session will examine the changes that the urban fabric of Montréal is undergoing, and wide range of real estate development activity that the city is continuing to experience. What type of innovative projects and city building are emerging in the inner city areas? What is the profile of their target groups? What are the key factors responsible for the growth of mixed-use formats? How is the concept of “work, live, play and learn” applying to the downtown Montréal market? What are challenges associated with creating a mixed-use project and its ownership structure that developers need to understand?
Tom Godber, Principal, Avison Young Québec
Michael Broccolini, Real Estate Manager, Broccolini Construction Inc.
François Lacoursière, Executive Vice President, Senior Partner, Sid Lee
Pierre Laliberté, Director, Research, Valuation & Advisory, Altus Group
Stéphane Tremblay, Associate, IBI Group
HOW DO YOU REPOSITION OLDER BUILDINGS TO COMPETE WITH NEW GREEN DEVELOPMENTS? WHY IS THE MIDTOWN SUBMARKET ATTRACTING TENANTS?
All new office development in today’s market is being designed with high levels of LEED certification in mind. However, new construction still only represents1% of the building stock. What are the options facing the remaining 99% of buildings with respect to their ability to be competitive in this market? This session will examine three specific trends that can respond to the impact of new green buildings. Initial discussion will focus on some 5 million sq.ft. of former industrial space that has been converted to office space ideal for high technology, gaming and communications/advertising firms. What are the key dynamics of what is commonly referred to as “the brick and beam” market? Secondly, why is the midtown submarket morphing into an office hub? This is a new kind of office district emerging midway between downtown Montréal and the suburbs on and off the island. What role is easy access to public transit and quality of life attributes playing in this trend? Finally, what steps can owners of existing buildings take to improve the operational efficiencies of their properties and to ensure that their space remains competitive in the market? What can you do with challenged properties to maintain tenants and improve their attractiveness?
André Plourde, President, Groupe immobilier
Martin Galarneau, Partner & Vice President for Corporate
Affairs and Development,
Thibault, Messier, Savard & Associés
Peter Picciola, Vice President, Office Leasing, Québec, Ivanhoée Cambridge
Gideon Pollack, Vice President, Business Development, Claridge Inc.
Natalie Voland, President, Gestion Immobilière Quo Vadis