Month: March 2016

Oil & Office Real Estate– Is There Hope For Recovery?

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dreamstime_xl_17016927At the risk of stating the obvious, the plummeting oil prices in our economy today has had quite an effect in the office real estate industry. Many industrial companies across Canada that are highly dependant on oil have contracted their operations in efforts to slash their costs, giving up valuable assets, including office space. This has led to increased office space vacancies across the country which owners are fighting to not sell or lease out below their market value. Meanwhile, some trust companies are selling off their assets in order to have more liquid funds. Their goal– to purchase properties that they foresee being quite profitable once the market changes. But with all this fluctuation and activity, I dare ask, is there a light at the end of the tunnel for the current office space market?

Well, market history dictates that what goes down eventually goes back up again. In 2008, a global recession caused oil prices to drop to $40 per barrel after being peaked at over $150 per barrel between 2000-2008. Then economic recovery efforts between 2009 and 2014 brought the oil prices back up to $125 per barrel1. Oil prices have steadily gone downwards since 2014 but fluctuating world demand and supply could change that in the foreseeable future. In direct relation, the office vacancy rates have increased from 8% in 2012 to over 18% in 2016, but could go down again once demand and thus pricing for oil goes back on the rise.

In the meantime, there is the possibility of foreign interest. With the low oil prices and lower Canadian dollar value, foreign investors, particularly from Asia, are showing interest in Canada’s available office space. In fact, four of the past five purchases of major downtown office space in Canada have been to foreign buyers who have been flocking to the relative safety of the country’s hottest real estate markets, Toronto and Vancouver2.

So, is there hope for the office space market? With oil prices slowly on the rise and with increased foreign interest in Canada’s available office spaces, I would say that there is.

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DJ Mcgauley and Associates Inc. is your Office Space Planning, Renovations and Relocation Project Management Company of Choice for the Toronto, GTA and surrounding areas. If a renovation or relocation of your 2,000 – 25,000 sq.ft. office space is in your plans, contact us to arrange a no-obligation site meeting. We guarantee that by the end of that meeting, you will know all that would be required to make your office renovation/relocation project a successful reality.

Call 416-239-1931, email info@djmcgauleyandassociates.com or visit our website for more information and to complete our contact form.

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References:

1Peresio, Greg, Investopedia, “Why did Oil Prices Drop so Much in 2014?”, http://www.investopedia.com/ask/answers/030315/why-did-oil-prices-drop-so-much-2014.asp

McLean, Steve, Property Biz Canada, 2016-02-28, “Firm Capital Property Trust Ready to Buy”, http://renx.ca/firm-capital-property-trust-ready-to-buy/

2McMahon, Tasmin, Report on Business, 2016 02 23, “Office Real Estate Sectors Settling in for a Tough 2016”, http://www.theglobeandmail.com/report-on-business/economy/housing/the-real-estate-beat/office-retail-real-estate-sectors-settling-in-for-tough-2016/article28858197/

TD Economics, Special Report, July 12, 2012, “Canada’s Commercial Real Estate Markets Primed for Growth”, https://www.td.com/document/PDF/economics/special/sg0712_commercial.pdf

It’s the Easter Season. Let’s Celebrate!

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Easter

DJ Mcgauley and Associates Inc. is your Office Space Planning, Renovations and Relocation Project Management Company of Choice for the Toronto, GTA and surrounding areas. If a renovation or relocation of your 2,000 – 25,000 sq.ft. office space is in your plans, contact us to arrange a no-obligation site meeting. We guarantee that by the end of that meeting, you will know all that would be required to make your office renovation/relocation project a successful reality.

Call 416-239-1931, email info@djmcgauleyandassociates.com or visit our website for more information and to complete our contact form.

Happy Palm Sunday!

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Palm Sunday

DJ Mcgauley and Associates Inc. is your Office Space Planning, Renovations and Relocation Project Management Company of Choice for the Toronto, GTA and surrounding areas. If a renovation or relocation of your 2,000 – 25,000 sq.ft. office space is in your plans, contact us to arrange a no-obligation site meeting. We guarantee that by the end of that meeting, you will know all that would be required to make your office renovation/relocation project a successful reality.

Call 416-239-1931, email info@djmcgauleyandassociates.com or visit our website for more information and to complete our contact form.

St. Patrick’s Day is Coming!!

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St Patrick's DayDJ Mcgauley and Associates Inc. is your Office Space Planning, Renovations and Relocation Project Management Company of Choice for the Toronto, GTA and surrounding areas. If a renovation or relocation of your 2,000 – 25,000 sq.ft. office space is in your plans, contact us to arrange a no-obligation site meeting. We guarantee that by the end of that meeting, you will know all that would be required to make your office renovation/relocation project a successful reality.

Call 416-239-1931, email info@djmcgauleyandassociates.com or visit our website for more information and to complete our contact form.

Daylight Savings Time Begins This Weekend!

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daylight savings time

DJ Mcgauley and Associates Inc. is your Office Space Planning, Renovations and Relocation Project Management Company of Choice for the Toronto, GTA and surrounding areas. If a renovation or relocation of your 2,000 – 25,000 sq.ft. office space is in your plans, contact us to arrange a no-obligation site meeting. We guarantee that by the end of that meeting, you will know all that would be required to make your office renovation/relocation project a successful reality.

Call 416-239-1931, email info@djmcgauleyandassociates.com or visit our website for more information and to complete our contact form.

DJ McGauley & Associates Inc. Expands Into New Office Space

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DJM OfficesOne of Toronto’s trusted office space planning, renovation and relocation project management companies, DJ McGauley & Associates Inc., has expanded into a new 2,600 sq. ft. office space in the Toronto West region, enabling them to offer warehouse space for temporary furniture storage and asset management services to its clientele.

We wanted to have a space that would not only serve our own office needs, but also serve the needs of our clients…” stated owner and Project Manager, Michael McGauley.

The company currently provides a six-fold integrated project management service offering to both its current and new corporate and industrial clientele:

  • Find It – Helping clients determine the office/industrial space that would best meet that company’s needs
  • Design It – Office space planning services, beginning with providing a floor plan that best addresses a company’s needs
  • Build It – Construction management and renovation services which would involve the building or reconfiguring of new or existing office spaces
  • Furnish It – sourcing and installing office furniture best suited for company
  • Move into It – Relocation planning and office move management
  • Maintain it – Facilities management services, including regular safety checks, checking and replacement of office furniture, and ongoing office space maintenance checks

DJM StorageOver 1800 sq. ft. this new office space is actually an alarm-secured climate-controlled duo-level warehouse space which DJ McGauley & Associates Inc. sectioned off into permanent storage cubicles. With this unique warehouse space set-up, DJ McGauley & Associates Inc. can now offer any clients that are retracting, reorganizing, renovating or reconstructing their office space, an option to temporarily store excess furniture, documents and other assets in one of its warehouse cubicles until the client’s transition period is completed.

It’s an extra convenience we can now offer our clients,” adds McGauley, “which can ultimately save them time and money, even during construction jobs.”

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DJ Mcgauley and Associates Inc. is your Office Space Planning, Renovations and Relocation Project Management Company of Choice for the Toronto, GTA and surrounding areas. If a renovation or relocation of your 2,000 – 25,000 sq.ft. office space is in your plans, contact us to arrange a no-obligation site meeting. We guarantee that by the end of that meeting, you will know all that would be required to make your office renovation/relocation project a successful reality.

Call 416-239-1931, email info@djmcgauleyandassociates.com or visit our website for more information and to complete our contact form.