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Land transactions also made up a Any big surprises from the pension funds and
significant portion of 2016’s sales REITs? New market entrants?
volumes which included the sale
of 92 acres at the corner of Murray
Avenue and Ferrier Street in West DW: No surprises as they both remained an active part of our buyer pool in
Kildonan to a private investment Winnipeg which we would expect to continue into 2017.
syndicate. Plans are to develop While Canadian bond yields have moved back up somewhat in 2016 after the US
Winnipeg’s newest residential elections, this movement in absolute yield still hasn’t been enough for large scale
community “Aurora At North Point”. investors’ fixed income funds to generate their required returns so we see real
True North Sports & Entertainment estate as part of a growing “alternative asset class” strategy for most Canadian
also closed on 220 & 225 Carlton pension funds of all scale.
Street the two land parcels make up the CA: Newport Centre was purchased by an Alberta-based pension fund, which
True North Square Development site was not necessarily surprising given the strength that Winnipeg has shown in
are obviously well underway with this relation to its Western Canadian peers. As I noted above, there are quite a few
institutional players paying attention to this market, and I think the only reason
very exciting project for our downtown.
some may have not moved forward with a project yet is that they are waiting for a
Our outlook for the Winnipeg real transaction that will give them enough size and scope to enter the market.
estate investment market remains The institutional groups that are here continue to invest and grow their portfolios
very positive moving into 2017 as they see this market as a more stable place to deploy capital than other
albeit likely under reduced volumes Western Canadian cities.
similar to those seen in 2016.
Investor demand remains robust What are your thoughts regarding new industry
for high quality existing investment trends in 2017?
opportunities with stable cash
flows and strong tenant rosters. CA: We see three main trends that will define the real estate landscape in 2017:
Well located assets which present
1. Interest rates began moving up toward the end of 2016, and we believe this will
value-add opportunities will also continue as equity markets extend their late 2016 gains into 2017.
be highly sought after as investors 2. Non-local investors will continue to view this market as attractive and therefore
and developers seek higher returns there will be increased competition for quality assets.
through the renovation and/or
3. The “Trump” factor will be a wild card for many investors and may dampen the
repositioning of assets.
investment attractiveness of Winnipeg due to our manufacturing and other sectors
CA: I would echo my comments potentially at risk with a more “protectionist” United States government.
from last year in that the Winnipeg DW: I suspect the biggest industry trends will be those driven by technological
market has been able to weather the advancements and the disruption they create.
economic headwinds far better than
other Western Canadian Provinces.
Alberta and Saskatchewan have
seen a large increase in vacancy
rates and declines in leasing rates
across all asset classes, and
Winnipeg has been able to stem
that. This has resulted in fewer
noteworthy sales transactions in
Alberta and Saskatchewan and
more attention paid to Winnipeg with
examples of the 148-unit Lumen sale
and Newport Centre showing that
out- of-province investors are seeing
opportunity here.

60 Manitoba 2017 Commercial Building Directory