You Can’t Fight City Hall – Especially in Edmonton

Steve1 leases a 300,000 square foot distribution facility in Northwest Edmonton.  The building consists of predominantly warehouse space, but it also includes an office area.  At one point, the office area was full with tech support, sales people and administration staff.  Unfortunately, recent company layoffs had reduced the amount of office the company required.  To[…]

Internal Rates of Return for Commercial Real Estate

Building on our article from last week, we’re going to focus this week on a commonly used term in finance called the Internal Rate of Return (IRR). Before we get into IRR, we first need to give a quick refresher on capitalization (cap) rates. The formula can be expressed graphically as follows: Where: I =[…]

A $695,000 Real Estate Mistake and How To Avoid One Yourself

Imagine, for a moment, that you just negotiated terms to purchase a property for $5,560,000. Presumably, you would do some basic homework on the property.  Perhaps it was a simple inspection, or maybe a more sophisticated engineering report. You may have even hired an appraiser. But after concluding it was the right property, you certainly wouldn’t be happy[…]

Oil Prices Have Increased 300% in the Past Two Months

Canadian oil prices had a rough 2018. Not only did the spread between West Texas Intermediate (WTI) and Western Canadian Select (WCS) hit a record of over $50 USD / barrel, prices of WCS bottomed out near $10 / USD in November. Reflecting back on last year, our mood on the market seemed to move[…]

2019: Edmonton Storm Clouds or Silver Linings?

We’re only in the first week of 2019 and we’re already prepared to make our first prediction of the year. With the caveat that we have made some remarkably poor predictions in the past, we’re fairly certain we’ll get this one right: 2019 will be filled with a lot of negative headlines. We’re basing this[…]

A Recap of 2018: EdmontonCommercial.com

As 2018 comes to an end, we wanted to quickly reflect on our past year of blogging.  With 50+ more articles under our belt, we’ve now written over 250 blog posts about Edmonton’s commercial real estate market.  In the past couple weeks we also added an option to subscribe to receive our posts automatically (either[…]

Are Large Oil Companies in Alberta Pushing for Low Oil Prices?

Canadians are a polite bunch.   Albertans, in particular, are so polite that we have tolerated the following: 1.  A major project (Transmountain pipeline), which was identified as being in the national interests of the country, was blocked by a neighbouring provincial government propped up by a coalition; 2.  Foreign-funded groups have been allowed to systematically[…]

A Step in the Right Direction by the City of Edmonton (With More Steps Still Required)

Whether it’s segmenting industrial areas apart from residential areas, or ensuring commercial areas are restricted to areas with adequate parking and traffic capacity, the City of Edmonton uses the existing zoning bylaw to allow and restrict what uses can occupy any given property or piece of land. Looking at a section of Edmonton provides an overview[…]