2020 Forum Program

Platinum

Gold

PropTech


Wednesday, April 15, 2020

7:00 am
REGISTRATION 
CONTINENTAL BREAKFAST

8:00 am
OPENING REMARKS
INTRODUCTION OF THE FORUM CHAIR

Laura Bradley, Leasing Director, Manulife Real Estate

Forum Chair:
Rohit Gupta
, President, Rohit Group of Companies 


8:10 am
ECONOMIC OUTLOOK FOR ALBERTA & EDMONTON: WHERE ARE KEY FUNDAMENTALS HEADING? WHAT GROWTH CAN BE ANTICIPATED FOR THE NEXT EIGHTEEN MONTHS?

Where are GDP, employment growth and other economic fundamentals heading for 2020 and beyond in Alberta and overall in Canada? How is Edmonton performing comparatively with other major cities? What impact could the outcome of the federal election and provincial government policies have on Alberta’s economy, i.e the spending cuts announced in the latest budget? This presentation will offer insights and perspectives on these and other trends and key fundamentals.

Speaker: 
Jean-Francois Perrault, Senior Vice President & Chief Economist, Scotiabank


8:45 am
BUILDING THE FUTURE OF ALBERTA’S OIL AND GAS ECONOMY

After five years of difficult adversity and a reduction in investment, our government sees 2020 as a great turn-around year for the oil and gas industry in Alberta. The context is cautiously changing for the better, with a number of important legal victories and policy developments that will help promote increased certainty for capital investment in Alberta’s energy sector. One of our government’s critical tasks is restoring investor confidence, both in our energy sector as well as the whole province, and showing the world that Alberta is a value opportunity for new investment. While we still have challenges, overcoming them is the number one focus for the government of Alberta in 2020.

Honourable Doug Schweitzer, Minister of Justice, Solicitor General and Deputy House Leader, Government of Alberta


9:20 am
ALBERTA’S INDUSTRIAL HEARTLAND: THE SECRETS ABOUT EDMONTON’S ECONOMY ARE EXAMINED 

While servicing the oil fields and being the seat of the provincial government are staple parts of the city’s economy, Edmonton is about much more than simply oil and public sector offices. With a young, well-educated, highly-skilled population in the prime of their working life, Edmonton is perfectly poised to be an ideal location for a wide range of other industrial and economic activities. The city is home to two world class petrochemical projects, significant global innovation in healthcare and technology, a centre of leading educational institutions, and large-scale agribusiness and manufacturing activity. This panel will examine the continued diversification of Edmonton’s economy and its implication for employment, growth, and consequently real estate demand.

Moderator:
Cory Wosnack,
Principal & Managing Director, Avison Young  

Panel will include:
Aaryn Flynn
, General Manager, Improbable North America
Myron Keehn, Vice President, Air Service & Commercial Development, Edmonton International Airport


10:00 am
UNDERSTANDING PROPERTY TAXES AND WHERE THEY ARE HEADING

A brief overview of commercial property tax trends in the City of Edmonton. What has happened over the past five years? How does the Edmonton situation compare with Calgary’s? What are the implications for developers, owners and tenants? What steps can be taken to modify the impact?

Speaker:
Kyle Fletcher
, Executive Vice President, Altus Group 


10:20 am
MORNING REFRESHMENTS

10:50 am
CONCURRENT SESSIONS (Select A1, A2 or A3)
SESSION A1:
THE STRATIFIED OFFICE MARKET: HOW MUCH IS TECH DRIVING DEMAND? WHAT DOES THE FUTURE HOLD FOR OLDER PROPERTIES? CAN THEY COMPETE? 

As of 2019, there were 299 office buildings in Edmonton, ranging from Class AA to Class C with an overall vacancy rate of 14%. Despite the uncertainty related the energy sector, leasing activity is showing positive signs of growth. Tech companies such as Jobber, amii and BioWare are in downtown Edmonton due to some of the building’s offering state-of-the-art facilities, proximity to public transportation, and new residential and commercial developments servicing the area. Are the needs of tech companies different from traditional tenants? Looking towards redevelopments, the transition of HSBC Place to an AA office building is targeting to have LEED Gold Certification and be one of the first office buildings in Western Canada to be Wired Certified. What are owners with older assets doing to remain competitive? Where are NERs heading? Will this be a stratified market? What is the outlook?                   

Phil Goh

Laura Bradley

Carolyn Bull

Kevin Humphrys

Bryce Margetts

Moderator:
Phil Goh
, Senior Vice President, Office, Brokerage, Colliers International   

Panel:  
Laura Bradley
, Leasing Director, Manulife Real Estate 
Carolyn Bull, Assistant Vice President, JLL 
Kevin Humphrys, General Manager, Epic Investment Services (Alberta) Inc.
Bryce Margetts, Vice President, Western Canada, Canderel


SESSION A2:
UNDERSTANDING THE MULTI-RESIDENTIAL MARKET: CAN DEMAND ABSORB ALL THE NEW PROJECTS OR WILL EDMONTON BECOME OVER-BUILT? 

Data has revealed that 782 rental units came onto Edmonton’s market in 2019. As tech companies begin to take space in the downtown office market, Edmonton’s multi-residential market has responded strongly, with seven residential projects under development, or near completion last year alone. With this new supply, will the market be able to absorb all these new units? Where are vacancy rates heading? For older stock, what are their strategies to compete with shiny new builds? This session will examine the Edmonton multi-residential market. The discussion will open with an overview of key supply and demand trends. What are the strategies underlying new development, i.e. location, mixed-use, intensifying an existing asset. How are amenities changing and evolving in purpose-built rentals? Is repurposing older properties increasing? 

Moderator:
Bradley Gingerich
, Senior Managing Director, IPA, Division of Marcus & Millichap  

Panel:  
Bill Blais
, President & CEO, Maclab Development Group
Emmett Hartfield, Owner & Partner, Intelligence House
Richie Lam, Chief Executive Officer, Westrich Pacific Corp.
Michael Smith, Senior Vice President, Multi-Family - Western Canada, ONE Properties


SESSION A3:
REAL ESTATE ACTIVITY IN NORTHERN ALBERTA AND SECONDARY MARKETS: WHAT ARE THE OPPORTUNITIES? WHY ARE THEY ATTRACTING MORE INVESTOR AND DEVELOPER INTEREST THAN YOU MAY BE AWARE?

This session will examine various communities within proximity of Edmonton. What is the level of investor interest in these markets?  Looking further out, how much activity are areas like Grande Prairie, Fort McMurray, Wood Buffalo and Lloydminster experiencing? To what extent are lower taxes, population growth, infrastructure, and favourable municipal planning policies and approval processes attracting developers and investors?

Moderator:
Carl Pedersen,
Principal, Avison Young

Panel:  
Daniel Eggert
, Vice President, Property Development Division North, Melcor Developments Ltd.
Nolan Montgomery,  President, Camgill Development Corporation
Wade Pilat, Councillor, City of Grande Prairie 
Mark Tanasichuk, Vice President, Development, TAG Developments


11:50 am
CONCURRENT SESSIONS (Select B1, B2 or B3)
SESSION B1:
THE EDMONTON RETAIL MARKET: FROM BUOYANCY AND GROWTH TO CHALLENGES AND TRANSFORMATION

As retail chains such as Home Outfitters, Sears and many others exit the Canadian market, concerns continue to be raised about what the future holds for brick and mortar retail. Why has Edmonton remained rather resilient as both international and local retailers continue to show interest in this market? H Mart, Jollibee, Uniqlo and Morphe are just a few examples of new global entrants to Edmonton. Is this resiliency expected to stay given the challenges traditional retailers are facing?  Where are rental rates heading over the next 12-16 months? How has the sale of City Centre Mall impacted the market and what do the new owners plan to do going forward? This session will closely examine these topics and other trends to provide insights into where retail appears to be heading. How are regional malls performing vs. power centres vs. strip centres vs. grocery anchored centres vs. urban retail? How is online sales activity affecting all of these formats?  

Moderator:
Paul Raimundo
, Vice President, Retail, JLL

Panel:  
Dave Hennessey
, Director, Leasing, First Capital Realty Inc.
Jarett Thompson, Chief Operating Officer, Cameron Corporation 
Kim Wingerak, Vice President, Operations, Western Canada, RioCan REIT


SESSION B2:
DEBT FINANCING: HOW ARE LENDERS VIEWING THE EDMONTON MARKET? IS THEIR UNDERWRITING BECOMING MORE STRINGENT?

A discussion focusing on the debt market and examining what borrowers can expect for the remainder of 2020 and beyond. While real estate continues to attract strong amounts of capital, how are lenders and other sources of debt and equity capital viewing Edmonton? Where is their cost of capital heading? Who are the most active lenders in this market and what are they looking for? How are they assessing a deal and pricing it? What is their underwriting criteria? Are there any property classes that they are 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 credit unions and private sources? How available is land and construction financing?

Moderator:
Gay Andrews
, Principal & COO, Caplink Financial Corporation

Panel:  
Rick Bachalo
, Vice President, Mortgage Investments, The Canada Life Assurance Company
Brandon Kot, Managing Partner, Canada ICI Capital Corporation 
Rochelle O’Gilvie, Manager Client Relations, Multi-Unit Housing Solutions, Prairies, Canada Mortgage and Housing Corporation 
Carla Woodward, Vice President, Real Estate & Construction Services, RBC 


SESSION B3:
CASE STUDIES OF INTERESTING DEVELOPMENT: WHAT IS DRIVING THIS LEVEL OF ACTIVITY? HOW ARE THE PROJECTS OVERCOMING ANY CHALLENGES? 

Edmonton is in the midst of a $5B transformation of active development and investment in downtown, comprised of office towers, restaurants, hotels, retail spaces, arts and culture facilities and residences. The session will examine a number of projects to determine the primary market fundamentals and other factors responsible for these developments. How are developers assessing opportunities in the face of the Municipal Government Act, City Charters, and construction costs pressures? What are some challenges or constraints to development and how can they be overcome? What are the most practical opportunities at this time? The session will examine a wide range of projects and what can be learned from these experiences.

Moderator:
Patti Walsh
, Senior Partner, Grant Thornton LLP 

Panel:  
Chris Dulaba
, Placemaker, Beljan Development Corporation 
Margaret Knowles, Senior Vice President, Development, Morguard Investments Limited 
Jodie Wacko, President, President, Beaverbrook Communities and Beaverbrook Commercial
Andrea Wheaton, Director, Wheaton Properties


12:40 pm
NETWORKING LUNCHEON
LUNCHEON REFRESHMENTS

1:35 pm
LUNCHEON KEYNOTE PRESENTATION
THE RENEWAL OF THE ALBERTA ECONOMY – MOVING FORWARD

A presentation from a leading research organization that focuses on tough public policy challenges facing the West – and Canada as a whole – at home and on the global stage. Where is Alberta's economy heading?

Speaker:
Colleen Collins
, Interim President & CEO, Canada West Foundation 


2:35 pm
CONCURRENT SESSIONS (Select C1, C2 or C3)
SESSION C1:
OPPORTUNITIES AND KEY DYNAMICS IN EDMONTON’S INDUSTRIAL MARKET: WHERE IS IT HEADING?

As of the end of 2019, the Edmonton industrial market’s overall vacancy rate was 7%. While oil and gas manufacturers continue to sit on the sidelines, maintenance and service companies have expanded in Edmonton. There is activity on the development side where currently 2.9M sq. ft. is under construction. Apex Business Park, Monarch Business Park and Discovery Business Park are three examples that are expected to be completed this year and 2021 respectively. To what extent are new projects locating in the RMs that surround Edmonton due to lower costs and quicker planning approvals? How is the industrial real estate market performing overall? Is there a flight to quality? How are the design and requirements of new industrial space changing? How much speculative building is occurring in this market?  

Moderator:
Andy Horvath
, Partner, Industrial, Cushman & Wakefield Edmonton

Panel:  
Kris Augustson
, Vice President, Leasing & Land Sales, Remington Development Corporation 
Kimberley Hill, Vice President, Asset Management, Summit Industrial Income REIT
Brad Hoffman, Executive Vice President, Western Canada, Panattoni Development Company
Bronwyn Scrivens, Associate, Industrial Sales & Leasing, Omada Commercial 
Matthew Woolsey, President, York Realty Inc. 


SESSION C2:
WHAT ARE ENTREPRENEURS DOING TO SUCCEED IN EDMONTON’S COMPETITIVE AND CHALLENGING ENVIRONMENT? 

Given the strong investor sentiment in the Canadian market, many opportunities have emerged for entrepreneurialism in the real estate industry. In Edmonton, who are some of them and what are they doing? They are often privately-owned firms, experienced at looking for innovation and accessing lower priced capital. While they do not dismiss risk, they often have the ability to see value and reward where many others do not. From repurposing older buildings to infill development in vacant spaces, their strategy often requires some creative thinking. What have been some of the most significant challenges that they have faced? How did they successfully overcome them?

Moderator:
Eric Slatter
, Partner, Omada Commercial 

Panel:  
John Day
, President, John Day Developments 
Darren Durstling, President & CEO, ONE Properties
Henry Edgar, Partner, Edgar Development Corp.
Alan Mackenzie, Chief Executive Officer, Canada, JLL 


SESSION C3:
THE EVOLUTION OF EDMONTON’S PLANNING & DEVELOPMENT PROCESS: IS THIS CITY AHEAD OF THE CURVE COMPARED WITH OTHER GATEWAY MARKETS?

In 2010, the City of Edmonton adopted a new Municipal Development Plan (MDP) called The Way We Grow and established a goal of achieving 25% of its future growth in core and mature neighbourhoods, and around LRT stations and transit centres. This objective is now moving towards a 50% target to accommodate the needs of a growing population without creating excessive new infrastructure demand. How is the MDP assisting in decision-making and development in the city? What other initiatives and policies have been put in place to facilitate new development and intensification and meet Edmonton’s future growth? This panel will explore the progress that the city is making to assist the ongoing expansion of Alberta’s capital region.

Moderator:
Andrew Usenik
, Partner, Strata Development Corp.

Panel:  
Stephanie McCabe
, Deputy City Manager, Urban Form & Corporate Strategic Development, City of Edmonton 
Kevin McKee, Chief Executive Officer, Pangman Development Corporation
Farhad Mortezaee, Principal, FarMor Architecture 
Mike Saunders, Vice President, Development, Qualico Commercial  


3:25 pm
AFTERNOON REFRESHMENTS

3:35 pm
ROUNDTABLE OF NATIONAL & LOCAL INVESTORS: WHAT HAS ATTRACTED THEM TO THIS MARKET? HOW ACTIVE DO THEY EXPECT TO BE? 

In 2019, Edmonton saw major benchmark transactions take place by a number of different national investors and some foreign entities. Of all the cities and countries in the world where they could have chosen to deploy their capital, why did they select Edmonton? Discussion will touch on each major asset class and determine which have the strongest investor interest and why. Where are cap rates trending in 2020? How do investor decisions vary from private equity funds to REITs to privately owned buyers to institutional capital? What do they foresee for the Edmonton market beyond 2020?

Brandon Kot

Moderator:
Brandon Kot,
Managing Partner, Edmonton, Canada ICI Capital Corporation 

Panel:
Micheal Dal Bello
, Senior Vice President, Real Estate, AIMCo 
William Logar, Executive Vice President, Asset Management, KingSett Capital
Stephen Robertson, Head of Acquisitions, Canada, LaSalle Investment Management
David Young, Managing Director, CBRE Limited


4:30 pm
CLOSING REMARKS

4:35 pm
NETWORKING RECEPTION