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A recap of the past 18 months with local investors buying up $135 million worth of office buildings (11 of the 12 were owned by non locals).

  • Whitemud Business Park
  • Broadmoor Boulevard (Broadmoor Place A and B and VII and VIII)
  • Clark Builders Place
  • 5241 Calgary Tr.
  • 10451 170 St.
  • Compass Place
  • Plaza 124
  • Parkwest Business Centre
  • Phipps McKinnon Building
  • Empire Building
  • Sun Life Place
edmontonjournal.com

Edmonton investors snatch up 12 local buildings

"I think it's a real testament to those that are in the trenches here. They see an opportunity"
edmontonjournal.com edmontonjournal.com
 
TAS said:
A recap of the past 18 months with local investors buying up $135 million worth of office buildings (11 of the 12 were owned by non locals).
Click to expand...

I for one am not cheering the exit of non-local investors. It only reinforces what I hear from non-local real estate market people and entities: if you have Edmonton, get out while you can. It becomes self-perpetuating; non-local investors see this kind of trend as a message to steer clear, unless they are able to see an acceptable return on their investment and on-going liquidity to exit. If locals are the only exit strategy, that's a scary thing.

It's stunning to see how little institutional money is placed in Edmonton versus all other major Canadian cities. They've been shedding Edmonton for a long time now.
 
I suspect local people probably have a better sense of the local market or future prospects than someone further away or on the other side of the country. So I see this as a good sign.

The long decline in oil prices from 2014 to around 2020 was not good for Alberta or Edmonton economy, but things have changed since then and there are a lot of people moving here now both because of the stronger economy but also because of affordability.

I feel our relatively low profile means some of those non-local investors especially those further away haven't realized or figured this out yet.
 
Offworld said:
I for one am not cheering the exit of non-local investors. It only reinforces what I hear from non-local real estate market people and entities: if you have Edmonton, get out while you can. It becomes self-perpetuating; non-local investors see this kind of trend as a message to steer clear, unless they are able to see an acceptable return on their investment and on-going liquidity to exit. If locals are the only exit strategy, that's a scary thing.

It's stunning to see how little institutional money is placed in Edmonton versus all other major Canadian cities. They've been shedding Edmonton for a long time now.
Click to expand...

This is one of the most important things that you can read today if you are from Edmonton or are in the real estate business in Edmonton.

Great to see locals picking up the pieces, but most of the BIG institutional money is leaving or has left and that's not particularly a good thing.
 
Local ownership is probably better than any income being shipped away to institutions on Bay Street. I also wonder if institutional money is worried about the potential of losing their shirts on TO and Van RE.

I'm not a big real estate investment fan because of the very irresponsible leverage that is normalized, so part of me is hoping for many of these people to be brought back to Earth.
 
Barnaby said:
Local ownership is probably better than any income being shipped away to institutions on Bay Street. I also wonder if institutional money is worried about the potential of losing their shirts on TO and Van RE.

I'm not a big real estate investment fan because of the very irresponsible leverage that is normalized, so part of me is hoping for many of these people to be brought back to Earth.
Click to expand...
As someone who has been in the institutional investment field across Canada and into the US, I can guarantee that almost all institutional investment managers are liquidating Edmonton if and when they can, and with no plans to return. I could say more but it would unfortunately involve sharing some quite strong negative opinions which Edmontonians would not appreciate hearing. Honestly, I don't like hearing it either.

It's sad, really sad. I'm a fan of the city, but I understand why investment outflows have been as strong as they have been. What's the go-to phrase these days? It is what it is.

[Edit: I should acknowledge that some institutions are still interested in certain B2R development projects, either self-built or in partnerships.]
 
Offworld said:
As someone who has been in the institutional investment field across Canada and into the US, I can guarantee that almost all institutional investment managers are liquidating Edmonton if and when they can, and with no plans to return. I could say more but it would unfortunately involve sharing some quite strong negative opinions which Edmontonians would not appreciate hearing. Honestly, I don't like hearing it either.

It's sad, really sad. I'm a fan of the city, but I understand why investment outflows have been as strong as they have been. What's the go-to phrase these days? It is what it is.

[Edit: I should acknowledge that some institutions are still interested in certain B2R development projects, either self-built or in partnerships.]
Click to expand...
I don't really think it's sad though. If we were Halifax or Winnipeg there would be a need for worry, but the City of Edmonton, and Alberta in general has offensive amounts of money, and better demographics than anywhere east of Saskatoon.

Sometimes it's good for people to take their ball and go home, especially if it's in the form of selling something that you value. Been through this with other assets, those most likely to sell should be welcomed to the exit. The problem is if the city doesn't respond by making it very easy for local ownership, most importantly housing in the CBD.

I understand investing in Vancouver, I don't understand the long term financial viability of over investment into the retirement home that is Eastern Canada. I hope the institutions that don't want to be here continue that energy until a bottom is found.
 
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Offworld said:
As someone who has been in the institutional investment field across Canada and into the US, I can guarantee that almost all institutional investment managers are liquidating Edmonton if and when they can, and with no plans to return. I could say more but it would unfortunately involve sharing some quite strong negative opinions which Edmontonians would not appreciate hearing. Honestly, I don't like hearing it either.

It's sad, really sad. I'm a fan of the city, but I understand why investment outflows have been as strong as they have been. What's the go-to phrase these days? It is what it is.

[Edit: I should acknowledge that some institutions are still interested in certain B2R development projects, either self-built or in partnerships.]
Click to expand...
Would love to hear more honestly. Realism is better than pretend world.
 
Certainly a bit depressing but good to understand what shortcomings are seen in the market. Downtown office I get for sure but many other areas. Don’t bet against Edmonton as it continues growing rapidly
 
Offworld said:
As someone who has been in the institutional investment field across Canada and into the US, I can guarantee that almost all institutional investment managers are liquidating Edmonton if and when they can, and with no plans to return. I could say more but it would unfortunately involve sharing some quite strong negative opinions which Edmontonians would not appreciate hearing. Honestly, I don't like hearing it either.

It's sad, really sad. I'm a fan of the city, but I understand why investment outflows have been as strong as they have been. What's the go-to phrase these days? It is what it is.

[Edit: I should acknowledge that some institutions are still interested in certain B2R development projects, either self-built or in partnerships.]
Click to expand...
I feel the leave and come back cycle has been repeated in various ways over the years by outside investors as some of the local investors around for a while have probably noticed and will use to their advantage. You know, buy low sell high.

It has something to do with the size and prominence of our market and our economic cycles which differ from those of central Canada and there are probably several other factors too. At some point in the future many will be back falling all over themselves to get back in, perhaps even some of those who swore they never would.

Yes, it is what it is and the present is hard to change right away, but the future can be different which I think many except those with limited imaginations can get.
 
But the Edmonton area is consistently beating its 2023 residential sales numbers, starting off with a year-over-year increase of nearly 47 per cent in January, and soaring up to a 55 per cent increase in April.

July sales are up 27 per cent compared to the same time last year.

 
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