“The Times They are a Changing”
The times they are a changing: Bob Dylan
The fabric of the world has changed, and it may be what is about to happen with Woodgrove Mall in Nanaimo.
The older I get the quicker things seem to change. It sometimes seems like one of those movies where Artificial Intelligence starts to take over and in a short period the information and changes start to compound themselves at a breakneck speed. These changes are affecting everything we see, touch, use, live in, drive or buy.
Retail shopping as you know has been an issue for some time now, but I think that is just an overall global change in how consumers buy today. Traditional shopping centres for the most part today just don’t work. Most shopping centres built in the 70’s and 80’s are on larger pieces of property that are under utilized and the shopping centres themselves are underutilized due to the large common areas in them. I think going forward you will see many centres re-purposed or redeveloped to take advantage of the size of the properties. If you look at Woodgrove shopping centre, it is assessed at $259,171,000. It is on 62.12 acres with onsite parking. The shopping centre itself is 701,807 sf. A good example of a redevelopment would be the Uptown Mall as you enter Victoria. That centre was very underutilized and was redeveloped to get rid of the interior common areas and build a more efficient centre with no interior common space and all outside entrances to each store rather than a common entrance. It is assessed at $369,784,000.That site is 18.66 acres with building area of 866,212 sf. You can see how underutilized Woodgrove Shopping Centre is compared to this. What it comes down to is what can you do with the property if it does not work in its present form. As well, what are the buyers’ projections of income and is it going to be something that blends into people’s future needs which in turn dictates what you can pay for it? There is no simple formula to this, it is what can you make it into which dictates how much you can pay.
Industrial properties have been the standout in this economy and have performed well in this economy. I think the beginning of next year we may see a shift away from the stifling that the pandemic has caused. Having said that there is always an ebb and flow in real estate due to long price increases and market instabilities from time to time. Over the long-haul values in all sectors increase. It is just the nature of time and the evolving economies.
How will the Pandemic change things? Well for starters, people have been cooped up in their homes for far to long and if your home does not have what you need to stay inside for long periods of time, then your thoughts shift to something that might fit your needs better. Maybe something a bit larger and less claustrophobic with maybe a gym or nice workout area? With so many people now getting comfortable working from home, a proper office area in the home will probably be a must. These are a couple things that have changed but there may be more coming
Will Real Estate always be a good investment? In my mind Absolutely. I have always been a buy and hold kind of guy. Some can make money buying and fixing up then flipping, but the real money and return is buying and holding. Look at it as a pension fund for retirement because, I hate to break the news to you but OAS and CPP will probably not even cover your rent so if you don’t have a pension plan you need to think of your options and plan for the future.
Fortunately, I do that for people. Its all about a plan and executing on that plan so your sunny days of retirement don’t get overshadowed by a cloud hanging over it. I am easy to contact and just as easy to talk to.
Hope you all have an AWESOME weekend!!!
Brian McCullough, RE/MAX of Nanaimo
#1-5140 Metral Drive
Nanaimo, BC V9T 2K8
Office: (250) -751 – 1223