Articles from Connect CRE

The U.S. and Canadian leaders, Donald Trump and Prime Minister Mark Carney, are at odds over trade deal concepts, which could significantly impact Canadian commercial real estate. Differences in opinions revolve mainly around tariffs, with Trump favoring a straightforward tariff approach. Although differences remain, both leaders expressed optimism about reaching an agreement. The ongoing discussions could influence investment decisions, development projects, and leases across the Canadian CRE market.

GWL Realty Advisors has started construction on a 24-storey rental-apartment tower in Calgary's Beltline district, featuring 219 units and retail space. Calgary Mayor Jyoti Gondek praised the project for aligning with city goals for urban density and sustainability. The building, set for completion in mid-2028, will offer modern amenities and address housing shortages in major Canadian cities.

Heidelberg Materials North America has acquired Concrete Crushers Inc. in Calgary, which is the largest concrete recycler in the region. This acquisition includes a recycled aggregates yard and a mobile contract crushing business. This move aims to enhance Heidelberg's market presence in Calgary and support its commitment to sustainable construction by expanding their recycled-concrete offerings. Financial terms of the deal were not disclosed.

Clark Builders has been awarded a contract for the $110 million CASA Mental Health Capital Expansion project in Alberta, aimed at improving mental-health care for children and youth. The expansion will include four new facilities in Fort McMurray, Calgary, Medicine Hat, and Edmonton, with a focus on trauma-informed design. These facilities will be built using the Integrated Project Delivery model and are supported by the Government of Alberta and community fundraising. The locations in Fort McMurray and Calgary are set to open in 2027, with Medicine Hat and Edmonton following in 2029.

Private investors have increased their involvement in Edmonton's industrial property market, rising to 62% in the past year from an average of about 39% over the previous five years, according to Avison Young. Alongside these investors, companies buying properties for their own use also saw an increase, contributing to a more user-driven market. The industrial vacancy rate in Greater Edmonton fell to 4.2%, supported by strong tenant demand. This dynamic is seen as indicative of a rebalance towards market stability.

Calgary's office leasing activity increased significantly, with a 60% year-over-year surge, amounting to 1.6 million square feet in the first quarter. A decrease in sublease space and positive absorption contributed to reduced downtown vacancy rates. Despite the strong start, leasing activity might slow in the second quarter due to political and trade uncertainties. Office space conversions to residential and hotel uses also contributed to vacancy rate reductions in Calgary's downtown.

Sunoco, a U.S.-based company, has agreed to acquire Parkland Corporation for $9.1 billion in a deal involving cash, shares, and debt. Parkland, which operates gas stations and a convenience-store chain, has been in conflict with shareholder Simpson Oil over its board composition. Sunoco's acquisition offer was previously rejected at $8 billion in 2023. The proposed deal has led to the postponement of Parkland's annual general meeting until shareholders can vote on the takeover.

NewCold, a Dutch logistics firm, is finalizing a $222-million fully automated cold-storage warehouse in Coaldale, Alberta. The facility, designed for energy efficiency and automation, will store 56,000 pallets of frozen food and create 50-60 local jobs. A 2.6-kilometre rail spur will connect the facility to the Canadian Pacific Kansas City network, enhancing export capabilities. Alberta invested $2.1 million, and the project is expected to boost the local economy and agri-logistics sector.