Tuesday, April 28, 2015
WELCOME AND OPENING REMARKS: FORUM CHAIRMAN
Introduction of the Forum Chairman:
Phill Elenko, Partner, ICR Commercial Real Estate
UNDERSTANDING SASKATCHEWAN’S COMPETITIVE ADVANTAGE: HOW RESILIENT IS IT?
President & CEO
Concorde Group of Companies
WHAT ARE THE MAJOR ECONOMIC DRIVERS IN SASKATCHEWAN? WHY IS THIS PROVINCE OVERTAKING ALBERTA AS CANADA’S LEADER IN GROWTH?
Within the Canadian context, Saskatchewan has had one of the best economic performances and GDP growth of all provinces since 2010. More importantly, many economists predict that the trend will likely continue. This presentation will examine the most significant elements of this unique market including some global, national trends, economic fundamentals, and their potential implications for Saskatchewan. It will also examine the outlook and major economic drivers responsible for the province’s strong results, and the forecast for continued employment and population growth. How do the prospects for this market compare with other Canadian provinces? What implications will the decline in oil and other commodity prices have on Saskatchewan?
Mario Lefebvre, Former Director, Centre for Municipal Studies, Conference Board of Canada
REGIONAL GROWTH MANAGEMENT AND INFRASTRUCTURE PLANNING: FOCUS ON THE TWO MAJOR MARKETS IN SASKATCHEWAN
Over the past ten years, Saskatchewan has been experiencing unprecedented growth which is not expected to decline. As a result, Regina and Saskatoon markets have been experiencing many strong pressures. Some of the resulting trends include increases in the price of land in all four municipalities, unabated interest in residential and industrial development, and a need for additional infrastructure to support the growth. The leaders of these communities will examine these trends along with a number of other related ones, e.g. revitalization projects within inner city areas, the potential for mixed-use development in downtown cores, the use of municipal land corporations as a means to manage growth, the development planning and approval process in each municipality. How much growth is likely over the next decade? What are the key policies that the municipalities will be using to try to effectively manage the trends?
|Larry Hiles||Mayor Donald Atchison||Mayor Michael Fougere||Reeve Judy Harwood|
Larry Hiles, TEC Chair – Regina, TEC Canada
WHAT ARE THE MAJOR CONTRIBUTORS TO SASKATCHEWAN’S COMPETITIVE ADVANTAGE? WHY IS THIS PROVINCE ON TRACK TO BE CANADA’S LEADING ECONOMY?
In the current global environment, economies that are tied to commodities and resources were experiencing the strongest growth until recently. Saskatchewan is the sixth-best place in the world for mineral investment – out of 93 jurisdictions surveyed across Canada and around the world. But just as importantly, the province has evolved into the most diverse economy in Canada that includes: agribusiness, biotech, a mining industry larger than Ontario’s, fabricated manufacturing, engineering, prospecting, and a hydrocarbons market that includes a portion of the oil sands. World class companies are headquartered here. This economy has been very strong and is well positioned to remain that way including the lowest unemployment rate in Canada. The speakers will offer some insights on the strong competitive advantage that this province offers and why it is attracting the attention of a wide range of investors.
Vice President, Canadian Manufacturers & Exporters and Founder & Executive Director, Saskatchewan Manufacturing Council
Established in January 2013, the Saskatchewan Manufacturing Council is an exclusive, CME-led group that brings together more than 40 chief executives and other senior industry influencers to speak with one voice on priority issues impacting manufacturers in the province.
President & COO, Des Nedhe Development
Driven by the entrepreneurial spirit of English River First Nation, Des Nedhe Development is expanding its portfolio to explore new development opportunities in construction, mining, retail, and real estate. Its portfolio is strongly potential for growth and further diversification that can take advantage of opportunities to expand existing partnerships and develop new ones, all over the province.
CONCURRENT SESSIONS (SELECT A1, A2 OR A3)
HAVE THE OFFICE MARKETS IN SASKATOON AND REGINA PEAKED? WHAT CAN WE EXPECT IN THE REMAINDER OF 2015 AND GOING FORWARD?
This session will examine the current trends and future outlook for the office markets in Regina and Saskatoon. Where are the leasing fundamentals in both cities heading at this time? Having had the lowest office vacancy rates in Canada for several years, Regina is turning into a tenant’s market. Having a negative absorption, Saskatoon’s office market is also following this trend. What does the future hold for the downtown and suburban office markets in both cities? What is needed to drive demand to turn the tide? How much development is in the pipeline at this time? How are Class B properties like to perform compared to Class A space? What strategies are smaller landlords pursuing in these markets? What role do the policies of Regina and Saskatoon play in facilitating office development in the suburbs vs. downtown area?
Rosanne Hill Blaisdell, Managing Director, Harvard Buildings Inc.
Dale Griesser, President & Broker, Avison Young Commercial Real Estate (Sask.) Inc.
Andrew Reial, Senior Vice President, Portfolio Management, Dream Office REIT
Basil Waslen, Vice President, Finance & CFO, Secretary, Pillar Properties Corp.
HOW HOT ARE LAND AND RESIDENTIAL DEVELOPMENT IN THE GREATER REGINA AND SASKATOON MARKETS?
Saskatoon and Regina continue to entice commercial and residential investors looking to develop land. Aside from a solid demand created by population growth, residential land development activity and housing projects have been quite vibrant. They have also been affected by a wide range of factors including: municipal planning policies, the impact of issues with the MDs surrounding the two cities, and the cost and limitations on the availability of serviced land. What is the price and inventory of residential lands in the Regina and Saskatoon markets within the cities and within the RMs? Where are land values across the province heading for 2015 and beyond? What is the outlook for housing demand over the longer term? What infrastructure and transportation improvements should be priorities going forward to meet the need of growth in these communities? This session will examine some of the major housing developments underway in the Regina and Saskatoon markets.
Barry Remai, Partner, Remai Group
Don Armstrong, Vice President, Land, Dream Development
Neil Braun, Co-Chief Executive Officer, Porchlight Developments
Chris Le Fevre, Sole Principal & CEO, Le Fevre & Company Property Agents Victoria
Denis Jones, President & CEO, Deveraux Developments
Ron Olson, General Manager, Boychuk Group of Companies
ENTREPRENEURIAL OPPORTUNITIES: FROM THE RENEWAL OF OLDER ASSETS TO DEVELOPMENT AND INFILL ACTIVITIES
Entrepreneurs are experienced at looking at assets and Fdafinding opportunities. They are often privately owned firms. While they do not dismiss risk, they often have the ability to see value and reward where many others do not. What are some examples of projects that have been completed or are underway in Saskatoon or Regina? What niches do they strategically focus on to find the highest potential value opportunities that will provide quality returns? They range from major mixed-use development to the renewal of a single asset property. What have been the most significant challenges that they have had to endure? Given the present environment in the Canadian economy and real estate market, how do they see investment opportunities unfolding in the future?
James Youck, Principal & Architect, P3 Architecture Partnership
Ken Achs, President & CEO, Mid-West Group of Companies
Mitch Molnar, Chief Executive Officer, Mitchell Developments
Eric Wesling, President, First West Properties
CONCURRENT SESSIONS (SELECT B1, B2, OR B3)
WHY CANADA’S LEADING INDUSTRIAL REAL ESTATE MARKET MIGHT GET EVEN HOTTER
The industrial real estate markets in Regina and Saskatoon are characterized by some of the lowest vacancy rates and higher NERs in the country. This session will examine major factors contributing to these trends. Specific projects like the BizHub Industrial Park in Saskatoon and Regina’s 2,000 acre Global Transportation Hub (GTH) will also be examined. To what extent are these two cities becoming western Canadian transportation and logistics centres? The panel will also examine other characteristics of the market including: how much space has been added in the past few years; to what extent has there been a resurgence of spec development; how much availability of land is there for additional industrial development; what type of product is in highest demand in Regina and in Saskatoon; and what is the outlook for the industrial sector over the next 12-24 months.
Michael Bischoff, Chief Investment Officer, Concorde Properties and BizHub Industrial Park
Rhonda Ekstrom, Vice President, Business Development, Global Transportation Hub Authority
Frank Long, Director of Saskatoon Land, City of Saskatoon
Chuck Maher, Manager, Real Estate Branch, Planning Division, City of Regina
CREDIT AND DEBT MARKETS: DOES ANYONE KNOW WHAT LIES AHEAD? WHERE ARE SPREADS HEADING? WHAT ARE THE MAJOR SOURCES?
A discussion focusing on the debt market and examining what borrowers can expect for the remainder of 2015 and beyond. What is attracting greater amounts of capital into the real estate market? Are we possibly heading for a market with too much potential credit and capital again? Who are the most active lenders in Saskatchewan and what are they looking for? How are they likely to assess a deal and price it? Are there any property classes are they avoiding, reducing exposure to, or increasing pricing for? How will the strategies vary among the various types of debt lenders – from major banks and MICs to credits unions and private sources? How available are mezzanine financing and other secondary sources of debt? Discussion will also briefly examine construction financing and loans for smaller assets and smaller projects.
Neil Foran, Partner, MillarForan
Franca Cerqueti, Regional Director, Real Estate, MSNWO Region, RBC Royal Bank
Greg Dwyer, Vice President, Commercial Mortgages, Addenda Capital
Steven Hart, Managing Director, Prairie Region, CMLS Financial Ltd.
Tim Schroh, Executive Vice President & COO, Affinity Credit Union
TWELVE SECONDARY MARKETS: THERE IS LIFE AFTER REGINA AND SASKATOON
While the Regina and Saskatoon markets are large enough to attract the attention of some national and international investors, there are many smaller investors and developers who have found good opportunities in up to twelve secondary communities across northern, central and southern Saskatchewan. These markets include one of Canada’s fastest growing communities (White City) along with Prince Albert, Moose Jaw, Lloydminster, Swift Current, Yorkton, North Battleford, Estevan, Martensville, Warman, Humboldt, and Weyburn. What opportunities have investors and developers quietly and patiently found in this towns? How much liquidity do assets in secondary markets offer? Which of these communities is experiencing the strongest growth and have the strongest development and investment potential?
David Calyniuk, Vice President, Acquisition and Real Estate, North Ridge Development Corporation
Eric Watson, Chief Operating Officer, MasterBUILT Hotels
Thomas Williams, Vice President, Engineering, Walker Projects Inc.
CONCURRENT SESSIONS (SELECT C1, C2, OR C3)
INVESTOR INTEREST IN SASKATCHEWAN: WHO WANTS TO INCREASE THEIR PRESENCE IN THIS MARKET?
An insightful discussion about investment activity in the Saskatchewan market. The session will open with a brief overview of some of the bellwether transactions over the past twelve months.
The panel will address a range of questions including: What have been the major challenges facing investors trying to buy assets in Regina or Saskatoon? What is the profile of investors who are looking at these markets? Has the availability of too much low priced capital and an ever increasing number of potential buyers created a disconnect between supply and demand of product? Where do you project that cap rates will be by 2016 relative to today’s prices? Which product types appear to most strongly favoured by investors? What is driving the development of more than 10 hotels in Saskatoon alone? How do the investment markets in Regina and Saskatoon compare with other Canadian cities?
Craig Bell, Chief Operating Officer, PIC Investment Group Inc.
John McKinlay, Senior Vice President, Investment, Bentall Kennedy (Canada) LP
Blair Sinclair, Executive Vice President, Investments and Development, Triovest Realty Advisors
Scott Thomson, Vice President, Real Estate & Franchise Development, Moxie’s Grill Bar | Chop Steakhouse Bar | Shark Club Sports Bar Grill
HOW BUOYANT ARE THE RETAIL MARKETS IN SASKATOON AND REGINA FOR INVESTORS, DEVELOPERS AND TENANTS?
This session will examine retail activity in Regina and Saskatoon and the extent of investor, developer and tenant interest in these markets. What are the major differences and similarities between the two markets from a leasing and development perspective? How is the supply and demand balance at this time with respect to the various types of retail formats and tenant interest in these markets? Who are the new retailers expected to be coming into these cities? Differentiation is also a key ingredient between older existing centres and newer projects. What developments have been completed in either market? How do older retail properties remain competitive? How are all the new and older assets performing? Are there any particular formats and innovations growing in popularity? What lies ahead for retail market activity in Regina and Saskatoon for 2015 and beyond?
Blair Forster, Vice President, Development, Harvard Developments Inc.
Brad Goerzen, Vice President, Leasing, Central Canada & U.S. Region, Artis REIT
Charles Walwyn, Director, Leasing & Development, Enclosed Mall, SmartCentres
Theresa Warnaar, Vice President, Retail, KingSett Capital
MANAGING CONSTRUCTION AND DEVELOPMENT COSTS IN THE SASKATCHEWAN MARKET
As the strength in the economy and the real estate market in Saskatchewan continues, construction activity is facing more and more challenges. Demand is emanating from across the entire market: office, industrial, retail, multi-unit residential, and hotel developments. On top of this is the very strong impact on materials and labour from the billions of dollars of construction in the mining, minerals and energy sectors in Saskatchewan and northern Alberta, and in public sector activities as well. This session will examine some of the challenges facing developers in this market environment, the most updated information on current and future direction of construction materials and labour, along with the availability of construction financing for both smaller and larger projects.
Ron Margolis, President, Margolis Capital – Commercial Mortgage Professionals
Steven Andjelic, Manager, Manitoba & Saskatchewan, National Real Estate Group, TD Commercial Banking
Brian Barber, Senior Vice President, Ledcor Construction Ltd.
Michael Gabert, Director, Saskatoon, BTY Group Inc.
John Williams, President, North Prairie Developments Ltd.
CLOSING ROUNDTABLE: ASSESSING THE RISKS, CHALLENGES, STRATEGIES AND OPPORTUNITIES FOR 2015 AND BEYOND
A discussion with senior real estate executives as they provide their perspective on real estate market fundamentals for 2015 and beyond for Regina, Saskatoon and the overall Saskatchewan market. They will offer their insights on what they see occurring over the next twelve months, and their strategic thinking going forward.
Among the other questions to be examined:
- What are the most significant challenges, trends, risks and opportunities for investors and owners in the Saskatchewan market?
- Do they expect the credit and capital markets to continue to be flush with cash for real estate for some time?
- What impact are investors armed with significant cash having on cap rates? Where are valuations likely heading?
- What can be expected with respect to investment velocity and deal flow in Saskatchewan?
- What challenges if any do the leasing markets face in Regina? In Saskatoon?
- What about development challenges?
- What asset classes and transactions will likely offer the best possible returns in 2015?
- What needs to change in order for the real estate markets in Saskatchewan to reach their ultimate potential?
David Dubé, President & CEO, Concorde Group of Companies
Muir Barber, President & CEO, Pinnacle Developments Inc.
Michael Cooper, President & CEO, Dream Unlimited Corp.
Darin Rayburn, Chief Executive Officer, Melcor REIT and EVP, Investment Property Division, Melcor Developments Ltd.
Stephen Taylor, Vice President, Real Estate, HOOPP
Ted Welter, Managing Director, Real Estate & Mortgages, Greystone Managed Investments Inc.