Page 63 - BOMA_2018_BuildingDirectory

What are your thoughts regarding new industry 5. The City of Winnipeg has
continued its rigorous focus, policing,
trends in 2018?
and implementation of building
code, occupancy, and permitting
DW: We see five main trends that will define the real estate landscape in 2018: requirements at times frustrating
sale and lease transactions and
1. Rising interest rates and bond yields are unlikely to alter top caliber offering the pace of new development. Not
capitalization rates but they are likely to cause an erosion in B and C grade asset withstanding, rules and regulations
trading values as investors have taken note of added interest carry costs and the like theseare important for a healthy
likely impacts on value for ordinary or lesser quality properties.
and balanced real estate market. This
2. Local syndication groups are gaining competitive advantages through new compliance regime is taking certain
scale of their capital base, ability to manage operational and ownership people and processes by surprise so
complexities with expanded professional teams and leveraging of strategic will again be topical in 2018.
investor partners.
CA: Last year I said we would see
3. With the implementation of Transit-Oriented Development (TOD) zoning in three main trends that will define the
2017, the link between transit infrastructure and real estate development is real estate landscape in 2017, and I
clear and expected to grow stronger in the short term creating new development think it will be interesting to comment
opportunities along such routes which will have easy and affordable access to on my predictions from last year:
Winnipeg’s central business district.
1. “Interest rates began moving up
4. New development fees introduced in 2017 are likely to be confirmed and set toward the end of 2016, and we
in 2018 adding to overall development costs likely resulting in reduced margins believe this will continue as equity
for developers and increased occupancy costs for tenants. While the impact on markets extend their late 2016 gains
development permits is difficult to predict, most would suggest such fees will lead into 2017.” I think everyone would
to inflationary pressures on rental rates in new developments and moderated agree this prediction came true
construction activity. and as we saw in the first Bank
of Canada meeting of 2018, will
continue to be true throughout the
FOR COMPETITIVE BIDS... year. Equity markets have continued
an impressive run around the world
and Central Banks are becoming
USE increasingly concerned with inflation
due to this and many other factors
showing improvement in the economy.
Ensure your construction and renovation
projects receive the attention they deserve. 2. “Non-local investors will continue
to view this market as attractive and
Post your projects in BUILDWORKS,
Winnipeg Construction Association’s FREE therefore there will be increased
bid opportunities platform, viewed by over 700 competition for quality assets.” As I
Manitoba construction-related companies. noted in the above sections, this was
Accurate, Reliable, Timely. true throughout 2017 and I believe
will be a major theme throughout the
coming year as Winnipeg continues
to get on the radar of new investors
as a wonderful place to get a
stable, long term return without
the boom and bust factor to which
Contact us today to discuss your project
needs or request an information package. other markets throughout our country
Ph: (204) 774-2431 • www.winnipegconstruction.ca are accustomed.
BUILDWORKS@winnipegconstruction.ca
3. “The “Trump” factor will be a
TOGETHER WE BUILD MANITOBA. wild card for many investors and
may dampen the investment
1447 Waverley Street, Winnipeg, MB R3T 0P7 • P: 204-775-8664 • F: 204-783-6446 attractiveness of Winnipeg due
winnipegconstruction.ca to our manufacturing and other

Manitoba 2018 Commercial Building Directory 63