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SURVIVAL OF THE FITTEST IN OTTAWA MARKET
Rob Kumer Partner, Investments KingSett Capital KingSett Capital considers Ottawa to be a stable real estate market, especially in retail and multi-residential investments. That hasn’t changed for the company even as the federal government – the city’s largest employer – drastically cut costs
“As the government becomes selective and discriminating in terms of where they’re locating and where they’re pulling out of, those who have a real focus on the operating fundamentals will thrive. Those who don’t won’t.” and vacated office space in recent years. “I think there’s a bit of a challenge in the office market, just given the stagnation of the federal government, but it does give an opportunity for the best operators to really prove themselves,” says Rob Kumer, Partner, Investments, KingSett Capital. “As the government becomes selective and discriminating in terms of where they’re locating and where they’re pulling out of, those who have a real focus on the operating fundamentals will thrive. Those who don’t won’t.” He says that at KingSett Capital the focus is on ensuring that tenants, clients and customers in their buildings are happy and getting the value proposition they want. On an investment basis, the company is selective and focused on buying good properties in good locations.
“Ottawa has always been and continues to be a core market for us and a big part of our program,” Kumer says. In terms of office buildings, KingSett focuses largely downtown, however it also owns a 50 per cent stake in Bayshore Shopping Centre, located in the suburb of Nepean. In addition the company owns multi-residential property in Kanata and two senior housing facilities also in the Ottawa area, one in the Glebe and the other in Nepean. Given that federal government “stagnation,” will some operators be compelled to sell their properties in the coming year? “Generally – and this is probably a statement that applies for all of Canada – commercial landlords tend to be well capitalized and well-funded and don’t tend to sell when times get tough,” Kumer says, “but it’s always tough to predict what other guys are going to do.” ■ Michelle Morra-Carlisle
RETAIL AND OFFICE DEVELOPMENT MARKETS IN OTTAWA SIZZLING HOT
Julianne Wright Director and General Manager Altus Group Limited
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More than $1 billion was spent in the last two years on redeveloping Ottawa’s regional malls and large format shopping centres – and that’s just on five projects, says Julianne Wright, director and general manager at Altus Group Limited. This figure includes $220 million for Bayshore Shopping Centre; $300 million for the Rideau Centre; $291 million at Lansdowne Park; $120 million for Tanger Outlets; and $110 million for Les Promenades in Gatineau. “One of the reasons why retail is doing so well in Ottawa is that we have one of the highest average household incomes across the country,” says Wright. “Another reason is that sales per square foot at the Rideau Centre are among the top 10 across the country, while Bayshore and St Laurent shopping centres are also above the Canadian Real Estate Forum / FALL 2015