Latest news with #leases
Yahoo
3 days ago
- Business
- Yahoo
3PLs dominating warehouse leasing market
A pair of reports published this week from leading industrial real estate firms said the 3PL sector has been the most active in bidding and procuring new space. The world's largest commercial real estate services firm, CBRE Group, Inc. (NYSE: CBRE), said 3PLs accounted for more signed leases of 1-million-square-foot-plus properties than any other industrial vertical during the first half of this year. Third-party logistics providers were occupiers of 38 of the top 100 industrial leases, accounting for 28.9 million square feet of space. The group signed just 28 leases totaling 20.6 million square feet in the 2024 first half. The report said 3PLs were able to take a larger share of the mega lease market as many retailers and manufacturers are now outsourcing warehousing and distribution operations due to higher rents and operating costs. Further, activity among e-commerce tenants plummeted, with the group logging a 77% year-over-year decline in lease count (to just 7 new leases) and total square footage leased dropping 64% y/y (to 4.7 million). 'The drop-off reflects broader restructuring across the e-commerce sector, with many firms continuing to scale back after a period of rapid growth,' the report said. An annual demand analysis from JLL, Inc. (NYSE: JLL) showed 3PL, logistics and distribution tenants now account for the largest share of the pipeline. Demand from the group was up 12.8% y/y to 185.4 million square feet. (The study is a snapshot in time providing 'the most thorough preview of potential future leasing decisions.') Conversely, the report showed traditional retailers reduced their expected space requirements by 16.7% y/y. 'These opposing trends highlight how trade policy uncertainties and rising costs are fundamentally reshaping industrial real estate dynamics, with retailers becoming more cautious while logistics providers actively position themselves against supply chain disruptions,' the JLL repot said. Prospective logistics-oriented tenants now account for 15.4% of total demand through 2026. The increase among the group is partly due to an inventory pull forward ahead of a changing trade landscape. JLL noted rising interest from manufacturers, which are attempting to move production closer to the end consumer. It also said that interest in build-to-suit properties has increased more than 117% since 2018, 'reflecting a strategic move towards long-term cost control, operational stability, and asset appreciation in an evolving industrial real estate landscape.' Overall, JLL said demand was down 10.9% y/y as macroeconomic uncertainty has delayed decision making. Tenants are now active in the market for 11 months on average compared to the pandemic when they were making decisions in just 3.5 months. CBRE, too, noted overall demand weakness. Total mega warehouse leasing activity fell by more than half in the 2025 first half. Signed lease count fell 58% y/y (to 13 leases) with total new space leased dropping 55% (to 15.6 million square feet). More FreightWaves articles by Todd Maiden: Yellow Corp. to sell Ontario terminal, 2 others for $16M Freight shipment decline streak extends to 30 months, Cass says Landstar says $3.4M jury verdict, other charges to weigh on Q3 The post 3PLs dominating warehouse leasing market appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Times
4 days ago
- Business
- Times
Market jitters as Savills rues spring slowdown
Savills, the property company, is adamant that deals and leases that did not get signed during the turbulent spring will happen later this year — but the stock market is not so optimistic. After a decent start to 2025 on the back of cuts to interest rates, the London-listed agent recorded a 'slowing of transactional activity' from April, which it blamed on 'economic and trade policy uncertainty'. The bigger the transaction, the more likely it was to be pushed back, Savills said. 'In the first quarter, commercial transactions were picking up from the end of last year,' Mark Ridley, the chief executive, said. 'Then in the second quarter, with all the noise around 'liberation day' [tariffs], we ended up in a bit of a sand trap. China was particularly affected. None of [the deals] have fallen away; they just didn't transact. Some of that hesitation is unlocking already. Momentum has been improving since June.' Despite the spring slowdown, Savills still expects to deliver the kind of profit that shareholders had been hoping for this year. The consensus is that annual underlying pre-tax profit will rise to £148 million from £130.4 million in 2024. Savills accepts that it will need a good second half, but stressed that, after the postponements in the spring, it now had 'strong pipelines' for the coming months. Stock market investors, however, are concerned that it might take longer than bosses think for those delayed deals to restart. Zac Gauge, a real estate industry analyst at UBS, said: 'The pace of execution is likely to be affected by the unpredictable development of geopolitical events.' • Is London's housing market on the edge of freefall? Savills shares fell 55p, or 5.6 per cent, to 920p on Thursday, their biggest one-day fall in five months. Founded in the City of London in 1855, Savills has grown to become one of the UK's biggest property agents. It is thought of by many as a traditional residential estate agent, but that makes up only a tenth of its business. Its agents broker sales of warehouses, find offices for businesses and line up deals for investors. Most of its fees come from 'less transactional' divisions such as investment management, property management and a consultancy business. In the first six months of 2025, the group recorded revenues of £1.13 billion, 6 per cent more than the £1.06 billion it reported in the same period of 2024. There was a marked difference between the first and second quarters, however. Revenues between January and March were 12 per cent higher than a year earlier, while growth dropped to 1 per cent between April and June. • Desperate for buyers, London's luxury residences ramp up amenities Reflecting the broader improvement in commercial property markets, interim pre-tax profit jumped 78 per cent to £15.8 million from £8.9 million. Underlying pre-tax profits, Savills' preferred profit measure, rose 10 per cent to £23.3 million. The half-year dividend was raised by 4 per cent to 7.4p per share.
CBC
5 days ago
- Business
- CBC
B.C. billionaire wanting Hudson's Bay leases says landlord concerns are 'misguided'
A B.C. billionaire who wants to buy some Hudson's Bay leases says landlord claims that she won't be able to run a successful business in their spaces are "misguided." In new court documents filed overnight Wednesday, Ruby Liu says she is prepared to do what is necessary to make her venture successful and, if it makes landlords more confident in her plan, will personally guarantee the first year of rent she'll have to pay them. "I would not have undertaken this process, expended the time and several million dollars that I have to date, committed my considerable wealth going forward, and proceeded despite the objections of the landlords, if I was not fully prepared to fund this venture," she said in an affidavit. "I have no intention to invest $400 million into a business and then have it fail after such a significant expenditure." Liu wants to buy 25 former Bay leases to turn them and three others she bought at B.C. malls she owns — Tsawwassen Mills, Mayfair Shopping Centre and Woodgrove Centre — into a new department store with entertainment, dining and recreation spaces. Landlords, including Cadillac Fairview, Oxford Properties, and Ivanhoe Cambridge, have said their leases don't allow for such uses and even if they did, Liu's timelines and budgets are too "unrealistic" given the amount of work and repairs their properties need. A judge will hear arguments on whether landlords should be forced to let Liu move in at the end of August. Goal to open 20 stores in 180 days Liu has said she thinks she can get at least 20 stores open within 180 days of obtaining leases. Some of her estimates show she will spend $120 million on repairs to roofs, HVAC systems, washrooms, elevators and escalators. Landlords believe renovations will require much more money. Liu disagrees. While she does believe many locations will need changes to their roofs, ceilings, lights and more, she says "some of the work is only cosmetic and not everything needs to be taken down to the bare walls." "For many stores, minimal renovations are needed," she said. In its own affidavit, the Bay takes Liu's side, pointing out it was operating in the spaces she wants without the renovations landlords are outlining as necessary. While some of the repairs landlords have identified were discussed with the Bay previously, failure to tackle them never resulted in a landlord providing the retailer with a notice of default, said Franco Perugini, the Bay's senior vice-president of real estate and legal. "Therefore, it is surprising for me to read the objections of the objecting landlords claiming that [Ruby's] investment of $120 million into repairs and renovations of their stores will be insufficient when it significantly exceeds any amount that Hudson's Bay was planning to invest," he said. 11 companies willing to work with Liu: letter If her budget winds up to be insufficient, Liu says she will fund the extra work and will explore staged renovations that allow certain parts of a store to open for business sooner, while other parts of the store get repaired. She also used her affidavit to counter landlord assertions that she doesn't have suppliers willing to commit merchandise to her stores. Liu said she has had ongoing discussions with suppliers, even though she can't finalize merchandise agreements with them until she knows if a court will give her the leases. WATCH | Liu wants to get young people back into malls: Ruby Liu wants to get young people back in malls, at former Hudson's Bay stores 1 month ago Billionaire Ruby Liu has officially taken over three leases of former Hudson's Bay store properties and is promising to shake up the Canadian retail space. But as Michelle Ghoussoub reports, not everyone is buying what she says she'll be able to sell. She provided the court with letters from 11 companies saying they are willing to work with her. The most prominent senders were hair tools maker Conair, women's apparel retailer Northern Reflections and Indeka Group, which imports Calvin Klein, Tommy Hilfiger and Dockers clothing. "Many of the above potential suppliers have indicated that they have inventory in warehouses in Ontario and/or Quebec, some of which was previously ordered but not claimed by the Bay, and will be able to fill orders within weeks if needed," Liu said. She also appended a letter from Mimran Group Inc., whose namesakes Joe and Saul were behind Club Monaco and Loblaw Cos. Ltd.'s Joe Fresh. The letter from executive vice-president Jordin Mimran pitches Liu on an opportunity to acquire trademarks and other intellectual property belonging to Canadian fashion brand Alfred Sung. "I believe this strategic alliance could bring immediate substance and credibility to your New Bay transformation — both in the courtroom and with Canadian consumers," Jordin says in a letter. The Bay's Perugini positioned the landlords as trying to discount such efforts from Liu because if they get their leases back, they "will be afforded much greater latitude to pursue projects that may include mixed-use developments, new retail concepts, or even residential towers." He said Oxford Properties wants to transform Hillcrest Mall in Richmond Hill, Ont., into a mixed-use area for commercial, office, residential and recreational spaces. Cadillac Fairview also has plans to redevelop Markville Mall in Markham, Ont., as well as Fairview Mall in Toronto, while Morguard wants to turn Centerpoint Mall in Toronto into a transit-oriented community with residential, commercial, open space and community uses.
CBC
05-08-2025
- Business
- CBC
1st Hudson's Bay lease sold in Winnipeg as shoppers, experts consider how best to fill large empty spaces
Social Sharing The empty anchor location in the Winnipeg Outlet Collection mall may gain a new tenant now that a deal has been struck with YM Inc., which owns brands such as Urban Planet, Bluenotes, West49 and Suzy Shier. Legal filings show the clothing retailer has been approved to buy five leases across Canada of former Hudson's Bay company locations, including the now-empty Saks Off 5th space. The deal, valued at $5.03 million, includes five leases: Vaughan Mills in Vaughan, Ont., Tanger Outlets in Kanata, Ont., Outlet Collection in Winnipeg, CrossIron Mills near Calgary, and Toronto Premium Outlets in Halton Hills, Ont. Hudson's Bay put its leases up for sale earlier this year, after it filed for creditor protection and closed its 80 stores and 16 under the Saks banner. Following the closure, it's unclear how hundreds of thousands of square feet of retail space left behind by the other stores within the malls will be filled. In Winnipeg, many of those stores were located within malls where they were considered the anchor tenant. The previous Polo Park location occupies 212,086 square feet over three floors, while the previous St. Vital Centre location is 122,000 square feet over two floors, representatives for the malls said in emails to CBC News. Outlet Collection declined to comment on the sale, and a response from YM Inc. hasn't been received as of publication time. Not a new problem: CEO Loren Remillard, president and CEO of the Winnipeg Chamber of Commerce, says he's confident the empty spaces will find a new life soon. He said businesses had experience in the past with repurposing large retail spaces when Sears went bankrupt. "We've successfully navigated through those times and found new tenants, new offerings in those malls," he said. "We'll get through this." "Those spaces will be filled with maybe some more traditional retail or some new offerings that currently don't exist. The fact is where consumers are, the malls and the businesses in those malls will adapt to meet them there," said Remillard. Shoppers at Outlet Collection Winnipeg have their own wide-ranging dreams for the currently empty space. "A larger retail, maybe a slightly higher end retail," said Johanne Ferguson. Her husband would like it to have some nice restaurants. Others were in favour of entertainment hubs. "Maybe Golf Town, it will be like a one-stop shop, you can go in there and shop and at the same time play golf," said Leo Malabanan. "I think we could add activities to malls, like bowling or a mini golf sort of thing," said Jori Wasilewsky. "An old school arcade would be really fun," says Morgan Campbell. Tiana Duvnjak also envisioned games for the space. "Even like at the Forks they have two ping pong tables and it's always busy. I think that sort of thing or even a pool even, I think a lot of people would use that." New ideas for old spaces Remillard says one strategy to use large spaces like these anchor tenant location is to break them into smaller, more affordable units that allows retailers to lease space and operate in the mall environment. He says another approach is to turn these spaces fitness centres or entertainment hubs. "What you really need to do is to create a reason for people to visit the mall. And that's where we need to take a look at how we maybe not just backfill the space, but reinvent the space." The third approach he sees is to convert some of these large retail areas into affordable residential units. "Ultimately, it really comes down to understanding what the market needs are right now and making sure you're adapting the space to meet that." With the advent of e-commerce, he says shopping behaviours among consumers have certainly changed, but he doesn't agree that brick-and-mortar is going away. "People still want to be able to go into a store, try on that outfit, try on those shoes, interact with the electronic device they want to purchase. They may ultimately end up doing that online, but there's still a consumer need to be able to feel and have a tactile experience with what you're trying to buy." Craig Patterson, founder and publisher of the Retail Insider adds alternative uses include entertainment hubs like pickleball courts, food halls, or even residential or mixed-use developments. He says with e-commerce rising, malls are also focusing on experiential attractions to draw people in such as indoor rides, waterparks, or activity zones for kids. "In some shopping centres, we're seeing a pickleball court, whether or not that's in the parking lot outside or even in a larger space within the shopping centre, which would be I guess better for winter here in Canada," says Patterson. Holes in cities' downtowns Winnipeg isn't the only city wrangling with the question of what to do with these now-vacant spaces. After the Hudson's Bay stores closed, a dozen bidders made offers on a total of 39 properties. One of the bidders who wanted those spaces was B.C. Billionaire Ruby Liu. She paid $6 million for three leases at malls she owns — Woodgrove Centre in Nanaimo, Mayfair Shopping Centre in Victoria and Tsawwassen Mills in Delta. That deal got court approval last month and the leases were transferred back to Liu. Liu was also chosen by the Bay to buy 25 other leases, but landlords are fighting that sale because they say she has not filed a business plan that is credible or realistic. The company has now reached deals to sell the leases of six store locations, as legal wrangling continues on the deal with Liu. Patterson says the closure of the downtown location of Husdon's Bay in other cities like Vancouver, Calgary, Ottawa and Montreal will be a "blight on the downtowns for a while." "I think we're going to see a lot more vagrancy in the downtown cores because of the closure of these department stores. And I think that'll probably last for a while. And I think that's going to be very unfortunate, especially in busy markets like Toronto and Vancouver," says Patterson. "I mean, downtown Winnipeg is a very prime example, a very raw example. Losing that stunning looking Hudson Bay building, on Portage Avenue. It's just such a shame that it's gone." Meanwhile, many shoppers in St. Vital Centre are still wondering what might fill the space there. Shopper Jamal Tajdil says he would like bigger food courts, more green and open spaces within the malls where people can get together. Another shopper, Walter Pierce, says a daycare and/or a fitness centre will be beneficial to fill those empty spaces. Kishan Patel says he would like Canadian Tire or Lululemon, as "that would make this mall even higher, because we have JD sports already coming in, and if Lululemon comes in here, it's much better." YM Inc. to take over Saks Off 5th lease in Winnipeg outlet mall 3 minutes ago Clothing retailer YM Inc. has struck a deal to buy leases of five former Hudson's Bay-owned locations. The deal, valued at $5.03 million, includes the now-empty Saks Off 5th space in Outlet Collection Winnipeg. Following the closure of Hudson's Bay stores in June, along with Saks Fifth Avenue and Saks Off 5th stores, it's still unclear how the other empty spaces left behind within the malls will be filled.
CBC
30-07-2025
- Business
- CBC
Hudson's Bay takes landlords to court over billionaire's lease takeover
Social Sharing Hudson's Bay has solidified its faith in a controversial deal to sell leases to a B.C. billionaire by asking a court to force landlords critical of her to let her move in. A motion filed by the collapsed department store late Tuesday asked the Ontario Superior Court to reassign 25 of its leases to Ruby Liu. Fifteen of the leases cover properties in Ontario, including Fairview Mall, Sherway Garden, Bayshore Shopping Centre and Bramalea City Centre. The remaining 10 are split evenly between Alberta and B.C. and include West Edmonton Mall, CF Market Mall and Guildford Town Centre. The group of leases will cost Liu about $69 million, minus a litany of fees she has to pay as a condition of taking them on, the latest documents show. The Bay thinks Liu should get the leases because the deal will help it repay creditors, offer jobs to former Bay employees and fill vacant properties so landlords avoid "the visual and economic blight of a 'dark' or empty store for a significantly prolonged period." If landlords aren't forced to accept Liu, the company warns "significant benefits and value creation will be lost" and it will have to turn its former stores back over to landlords. The filing sets up the Bay for a fight that will pit it against some of the country's most prominent landlords, including Cadillac Fairview, Oxford Properties and Primaris. If it wins, Liu estimates the retailer will make a $50 million dent in the roughly $1.1 billion in debt it had when it filed for creditor protection in March. That process led the Bay to close all of its stores and start soliciting buyers for its leases. One dozen bidders made offers for 39 properties. Liu was designated the winner of the bulk of them. The Vancouver-based entrepreneur made her fortune in Chinese real estate and owns three B.C. malls, including the Woodgrove Centre and Mayfair Shopping Centre, which she is willing to sell to advance her push for the Bay leases. Liu inked two deals to buy a collective 28 leases that belonged to the Bay and its sister Saks stores in May. The first deal — for three leases at malls Liu owns — sailed through court with no opposition. The second became fraught shortly after it was announced, when landlords began meeting with Liu and found she had little information to share about her bid to open a new department store named after herself and replete with retail, dining, entertainment and recreational spaces. A package Liu sent landlords in early June, which was obtained by The Canadian Press, showed she thought she was capable of opening up to 20 stores within just 180 days of signing leases. It offered a vague financial budget and mentioned hiring efforts and meetings with prospective suppliers but did not name the potential vendors. Court records filed on Tuesday showed the initial package and meetings with Liu left Cadillac Fairview "with the strong impression that Ms. Liu is making this up as she goes." Primaris REIT felt her plans were "predicated upon hope, optimism and not on experience." New plans filed alongside the Bay's motion show Liu has taken another stab at a business roadmap. Promise of new flagship stores This time around she's budgeting $375 million for her venture and is looking at opening three tiers — flagship, platinum and standard — of a new, self-named department store. Though she has spoken repeatedly about putting dining, entertainment and recreational spaces into her stores, she promises to take on the leases "as is." "Much has been made of my public comments around the retail concepts that I believe may appeal to modern shoppers," Liu writes. "However, this should not be taken as any intention to ignore the terms of the lease." Liu says $120 million will be invested on "overdue" repairs to roofs, HVAC systems, washrooms, elevators and escalators and $135 million on initial inventory. She projects her plan will create at least 1,800 new jobs and by 2027, generate more than $420 million in annual sales. Despite the landlords' opposition to the assignment of the leases to Liu, she says she is "confident that my growing team (which will include former HBC executives) will be able to build fruitful and lasting relationships with them and their communities." Liu's filing was made after 50 pages she sent to judge Peter Osborne — against the Bay's advice — were entered into the court record. They included two notes to Osborne sent a day apart that were appended with letters the Bay's lawyers and landlord lawyers sent to her and her counsel. The records show the Bay's lawyers heeded early criticism from landlords and started pressing Liu to prepare a more in-depth plan. They urged Liu to hire the retailer's former CEO Liz Rodbell as a consultant and KPMG as a financial adviser and bring back Miller Thomson as legal representation and offered to shave $3 million off the price of the leases, if she did so. The new business plan Liu filed Tuesday makes no mention of Rodbell or Miller Thomson but lists KPMG as a potential tax adviser and auditor.
