78 - Friday, November 14, 1986 - North Shore News

REDEVELOPMENT

High fashion retail

jeasing demand high :

From page 77

As well, it is anticipated
that a resurgence in
speculative construction in
most Canadian industrial
markets will increase supply,
contributing to a stabiliza-
tion of rental rates and
prices.

Industrial vacancy rates
are expected to decline, or
remain stable, in almost all
markets in 1987. Quoted
rental rates should remain
constant in most markets;
however, slight upward
movement may occur in
Montreal, Regina, Winnipeg
and Vancouver.

'n the retail real estate
market, development is brisk
in the downtown cores of a
number of Canadian centers.
This is particularly the case
in Montreal, where over
900,000 sq. ft. of retail in-
ventory is expected to be
added to the core over the
next three years.

DEMAND SATISFIED

As there has been little
retail development in the
core during the past decade,
these developments will not
create a significant oversup-
ply, reports the survey.
Rather, they largely are ex-

pected to satisfy pent-up
demand for retail premises
in the core.

Revitalization of
downtown retail inventory
also is occurring in Edmon-
ton, Regina and Winnipeg.
With the regional mali mar-
ket at, or near, saturation in
most focations, new
development will be minimal
in 1987.

Strong retail leasing de-
mand by national retailers,
food/drug combos and
specialty items, particularly
high fashion, has positively
impacted retail real estate
markets across the country,
specifically in the metropoli-
tan Toronto area.

In this center, unprece-
dented leasing demand,
combined with limited
growth in retail inventory,
caused quoted rental rates in
1986 to increase by as much
as 50 per cent in all
categories of space and in
almost all locations.

As in 1986, a high volume
of investors will by vying for
a limited supply of well-
located, well-maintzined in-
vestment product. In many
centers, notably Toronto,
Montreal and Ottawa, this
will result in lower rates of
return.

“YOUR HOST
THIS
WEEKEND”

Frustraled by the lack of
available investment pro-
duct, investors increasingly
will be forced to create in-
vestment opportunities,
either through commercial
development or redevelop-
ment of existing product.

Strong investor demand
for retail product will occur
in almost ail centers
throughout 1987. Investors
primarily will be attracted to
fully-leased strip plazas
where a favorable return on
investment can be realized
through appreciation, capital
gains allowances or increas-
ed rents through  re-mer-
chandising.

RETAIL ATTRACTIVE

With product in limited
supply, many investors are
turning to retail develop-
ment. In Toronto, this has
resulted in significant in-
creases in land prices on sites
where retail development is
possible. However, the
perception that rental rates
will continue to increase,
coupled with the ability to
negotiate attractive financing
arrangements, means that
investor interest is unlikely
to waver.

Just a reminder... r
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2 Bedroom $83-$85,000

3 Bedroom $$2-99,500

# So do a favour for the most important person in your life -- YOU! Tie a little &
¥ string around your finger to remind yourself to visit Carlton Court today! (Put-§
B ting if off will only ensure one thing —- someone else will capture this excellent @
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CARLTON COURT

225 West 14th St.
OPEN: SAT. & SUN. 2-5 p.m.

EARLE MACDONALD
984-9711

S.R.C_ REALTY CORPORATION.

EL

GAIL GROVES
LOU ANN THOMPSON

984-9711