After a year that, for many, was like no other, RENX would like to offer a salute in the annual list of our Top-20 CRE articles for 2024. This year, we tip our cap to the bold.
To those who have been both willing and able to withstand the challenges and continue to advance their businesses. To those who bought and sold from positions of strength, and who have found ways to continue to push development forward.
Yes, there was lots of tough news during the past 12 months, from a spate of insolvencies in the condo development sector, to concern about debt loads amid the double whammy of ongoing higher interest rates and depressed property values.
Canada’s housing supply and affordability concerns continue, and will until our population growth truly slows and many more developers/builders can make the financial numbers work to get projects into the ground and completed.
But during Q4 of this year, we’ve seen a dramatic change in mood. After a five or six-month lull in investment activity across almost all commercial real estate sectors, things have suddenly started to happen again. We’ve seen a number of major property transactions in the past couple of months, as interest rates have begun to ease, and it seems development activity in some sectors might be about to pick up again as well.
The RENX top stories list
Christmas, New Year’s Day and the holiday season are a time for hope and renewal. Thus, our Top-20 list leans toward the positive.
We’ve included many of the major transactions of the year, across a wide range of sectors, including a couple of investors taking bold leaps into the office market. We highlight the robust demand for high-performing retail, note increasing attention on some “alternative” commercial real estate sectors (pickleball, anyone?), and salute some senior executives who made big moves.
We don’t ignore the tough stuff, but we do think that for every step backward the industry endured in 2024, it took two more forward. As you peruse our list, let’s see if you agree….
(We include our ranked, Top-10 articles here. For the full list of 20 articles from the year that was, click this link. Stories 11 to 20 are not ranked, and are offered in random order)
1. Blackstone bids to acquire Tricon Residential in US$3.5B deal
Blackstone kicked off 2024 by announcing plans to acquire Toronto’s Tricon Residential and take the firm private in a US$3.5B transaction. Little did we know then, it would be one of very few large acquisitions in 2024.
2. Allied acquiring majority stake in Vancouver’s 400 West Georgia, Toronto’s 19 Duncan
Among few marquee office trades, Allied Properties REIT completed two: buying a 90 per cent interest in 400 West Georgia in Vancouver ($395M valuation); and increasing its ownership stake in Toronto’s 19 Duncan to 95 per cent ($525.7M valuation).
3. Big demand continues for Canada’s shopping centres
Demand continues to be strong for retail centres across Canada, a trend featured in this article from June. In fact, the retail sector was hot all year with companies such as Westcliff, Primaris, Leyad and others all making major acquisitions.
4. Bank of Canada axes 1.75% from interest rates; prime at 3.25%
December’s fifth consecutive rate cut by the Bank of Canada, 50 BPS to an overnight interest rate of 3.25 per cent, should continue stimulating homebuying into 2025. The hard-hit condo sector, however, is expected to recover slowly.
5. Insolvencies likely to continue in Canada’s condo sector
The Greater Toronto Area condominium market languished despite interest rate cuts and initiatives by some municipalities to hasten approvals and lower development costs. This means a recent spate of insolvencies in the sector might not have reached its nadir yet.
6. Bad news for some REITs: Slate Office battles debt load
2024 was also a year of financial challenges, including: Slate Office REIT struggling with debt; a frosty reception for Melcor’s offer to take Melcor REIT private; and Moody’s downgrading Allied Properties REIT’s senior unsecured debt rating to junk status.
7. Fengate invests $1.8B in eStruxture Data Centers
The data centre sector is suddenly getting a lot of attention. Never more so than from Fengate Asset Management, which made a “ground-breaking” $1.8B investment into eStruxture Data Centers to provide the company with capacity to expand.
8. G2S2, Armco make big bet on Calgary office
G2S2 Capital and its Armco Alberta subsidiary just kept making headlines in Calgary, acquiring three office properties including the trophy 1.4-million-square-foot, four-tower Bow Valley Square. For good measure, Enright Capital also made its own big bet on the city.
9. Mattamy, Quadreal launch Phase 1 at TO’s Cloverdale
Mattamy Homes and QuadReal scheduled a fall launch for Phase 1 of their condo project The Clove, part of the $6B Cloverdale Mall redevelopment. It was one of very few new GTA condo projects to launch in 2024.
10. CAPREIT bulks up liquidity with $740M portfolio sale
It was a busy year for CAPREIT and its ERES subsidiary, which traded billions worth of properties in 2024. Included was the sale of 75 manufactured homes communities for $740M as it moved toward becoming a pure-play apartment REIT.
For the rest of the list, click this link.
Finally, from our team at RENX and Squall Media, to you and your family and team, we wish you a Merry Christmas, Happy New Year and Happy Holidays.
All the best in 2025.