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IDU Real Estate Evening
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The most important networking event for the Montréal real estate industry. More than 900 decision makers will participate. See Montréal through its green spaces. A unique gourmet and urban experience!
Gare Windsor Salle Des Pas Perdus,
1160, Avenue des Canadiens-de-Montréal
Tickets must be purchased for this event.
Laurence Vincent, Copresident, Prével
Roger Plamondon, President, Real Estate, Broccolini
Montréal continues to be “on fire”. The city is increasingly capturing the attention of domestic and global business with its wealth of opportunities and superior quality of life. This presentation will examine some of the key fundamentals that are driving the expansion of the Montréal economy and its competitive edge. What is the outlook for the city’s major economic engines, its housing market, and the prospects for continued growth in this metropolitan area? How does Montréal compare with other major Canadian cities? How sustainable is its current growth? Some appropriate reference will also be made to demographic and Canadian and global economic trends.
A positive customer experience in the destination may contribute to the following:
With more than 90 million sq.ft. of space, the Montréal office market’s absorption of new space has been significantly greater than some anticipated exceeding 1 million sq.ft. last year. Coupled with this, vacancy rates downtown dropped for seven consecutive quarters, now being below 9%. What were the major reasons for this trend? With more new developments opened or nearing completion, there appear to be no challenges to fill this space. Coworking office environments have also been surging in popularity. The result is a range of business models and solutions provided by a number of players and the evolution of the concept of WorkPlace-as-a-Service (WaaS). What are the landlord and tenant decision drivers and responses to the demand for this space, its amenitization, and implications for leasing?
A panel discussion will examine the debt market and what borrowers can expect for the remainder of 2020 and beyond. This will include comparative insights from a cross-section of lenders including Schedule A banks, large pension funds, lifecos, mortgage investment corporations and other alternatives. To what extent are their priorities, underwriting and strategies varying at this time as a result of a rising interest rate environment coupled with some overall uncertainty? How are they assessing a transaction and pricing it in this market? To what extent are rising bond yields affecting spreads? Is equity financing in high demand and, if so, why? Case studies of actual transactions including smaller projects will be examined during the session.
The session will bring some clarity to major elements of the rental and higher density housing markets in Montréal. How are the condominium and rental housing markets performing? There has been a dramatic year-to-year decline in the vacancy rate both on the island and in offshore communities. It has dropped to below 1.5% - the lowest it has been since 2005. The medium monthly rent in Montréal was $1,455 in January 2020, a 38% year-over-year increase. With prices rising by more than 5%, the demand for condominium development is continuing throughout 2020 and likely beyond. Forecasts suggest that rental and ownership demand will remain strong for at least the next two years. How much new purpose-built rental apartments is on the horizon? What are the opportunities in related niche rental markets, e.g. seniors housing, student housing? To what extent is multi-unit residential transforming the inner-city areas of Montréal?
Technological innovation is changing the world at an unprecedented speed and the real estate market and industry is not exempt from this transition. The intersection of real estate and technology is referred to as PropTech. Whether it is considered disruptive force or transformational, you need to understand it and embrace it. While technology enables us to do so more today, fast forward ten years and the pace of change and evolution will be more significantly accelerated. What is the range of strategies that you could be considering in order to take advantage of technological innovations for your real estate assets, for your overall portfolio, for your firm, for your clients, and for your best practices? What are some examples of PropTech initiatives that have entered the market?
Given the strong investor sentiment in the Canadian market, major opportunities have emerged for entrepreneurialism in the real estate industry. Who are they and what are they doing? From privately owned firms to large institutional organizations, entrepreneurs can be innovative and think “outside the box”. They are experienced at looking for innovation and often 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. What have been the most significant challenges that they have had to endure? How do they see opportunities unfolding in the future? What are some examples of the development projects, investment transactions and repositioning assets that they have executed in Montréal? What niches do they strategically focus on to find the highest potential value opportunities that will provide quality returns?
The industrial market has been on an accelerated and major comeback trail for the past four years. Notwithstanding absorption of 4 million sq.ft. in 2019, the vacancy rate still declined to 2.6%. The strong appetite for industrial sites, coupled with low availability, remain concerns for space users. The upward pressure on asking rents resulted in a 15% annual increase and a 25% increase compared to the first quarter of 2018. On the renewal side, this rental rate pressure is impacting the market and is acting as a constraint on many companies who are looking to relocate in order to remain lucrative. The arrival of influential e-commerce and distribution centres are bringing new standards to the industry and forcing older buildings to be repositioned to remain competitive with mixed-use purposes. Two significant customer fulfillment centres will be delivered in 2020 and 2021 for Amazon and Sobeys respectively.
Session details to follow.
Responsible investment is accelerating and describes the broad range of approaches that can be used to incorporate environmental, social and governance (ESG) considerations into the investment process. This is now accelerating as a significantly important metric that is being applied to all real estate companies by lenders and investors. The considerations include: How does a company act as an environmental steward? How does a company treat employees, customers and communities? How does an organization govern itself? Increasingly, companies are being asked to disclose and manage their ESG performance. This TEDx style session will examine the what, why and how of ESG, investor and regulatory sentiments. What are the complexities of these various metrics? How are organizations using this information within their financing, investment and development decision-making? How is it shaping a company’s processes, policies and overall culture? What is the business case for strong ESG practices? What is the view of standard, operators and investors of ESG in today’s market?
No other real estate property class has attracted as much chatter in recent years as retail. Once a favourite of investors, it is now facing many challenges and questions. Montréal has witnessed Canadian, U.S. and European retailers opening stores, closing them or looking for fresh approaches to their formats. How is online shopping actually impacting this retail market? What are retailers and landlords doing in this competitive market to retain the vitality of personal shopping? How are regional malls performing vs. power centres vs. strip centres vs. grocery anchored centres vs. urban retail? This session will examine these and other trends, and discuss the facts and fallacies pertaining to the retail market in Montréal from an investor, developer and retailer perspective.
Across the country, there is an unprecedented amount of intensification activity and urban revitalization on a scale that has not been seen for decades. Montréal is certainly no exception with a wide range of diversified developments occurring across the island and offshore. The scope and scale of the projects underway are in the billions of dollars, This session will examine several case studies of major projects in Montréal that have some unique characteristics. What type of innovative projects are emerging to create new forms of residential, office, retail, and hotel uses? What are some of the challenges that projects need to overcome within a very dense, highly regulated urban environment? What are the pros and cons of mixed-use developments? How feasible is it for projects to push the envelope on net zero, intelligent buildings, and higher performance metrics? What does the future hold for development activity in the Greater Montréal market?
Last year, Montréal had one of the strongest investment markets across Canada. The session will open with a brief overview of some of the bellwether transactions over the past 12 months. The panel will address a range of questions including: What are becoming the major challenges to buy assets in this market? How much migratory capital is Montréal attracting as is the case in Vancouver and Toronto? Where are cap rates likely to be by the end of 2019 relative to today’s prices? Which property classes are attracting the strongest interest and will likely offer the best returns? Is it possible to create value from acquiring out-of-favour sites and properties and seeing something that no one else does?
Over the past 5+ years, significant development and investment attention in Montréal has been paid to the centre of the island. Now, there is growing activity in the Western portion of the island which predominately has residential areas. This includes Beaconsfield, Dorval, Pointe-Claire, five other communities and two boroughs of the city. Mid-to-large-scale development projects are being unveiled transforming this portion of Montréal. They include Dorval Gardens to various multi-unit residential projects to high-density development around future REM stations. Some of the highest residential assessment increases will also be in portions of the West Island that have attracted strong homeowner interest and prices increases. This session will provide some insights to the overall trend towards to the West.
A discussion with senior executives from a range of organizations as they provide their perspective on Greater Montréal’s real estate market fundamentals for 2020 and beyond. They will offer their insights on what they see occurring over the next 12 months and their strategic thinking going forward.
Among the other questions that will be examined:
Roger Plamondon, President, Broccolini
Micheal Emory, President & CEO, Allied Properties REIT
Paul Finkbeiner, Global Head of Real Estate, GWL Realty Advisors Inc.
Brett Miller, Chief Executive Officer, Canderel
Nathalie Palladitcheff, President & CEO, Ivanhoé Cambridge
Please note that Simultaneous Interpretation from English to French and from French to English will be provided at this event.