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I don't really foresee the volume of foreign capital required coming in to Mtl. and thus upsetting its affordability. There are too many vacant locations as is, and not enough population and economic growth to massively reverse the situation. The one-in-six rule: can Montreal fight gentrification by banning restaurants? | Cities | The Guardian The one-in-six rule: can Montreal fight gentrification by banning restaurants? A controversial law limiting new restaurant openings in Montreal’s Saint-Henri area has pitted business owners against those who believe they are fighting for the very survival of Canada’s ‘culture capital’. Who is right? In downtown Montreal, traditionally low rental rates are coming under severe pressure amid a deluge of new restaurants and cafes. Matthew Hays in Montreal Wednesday 16 November 2016 12.30 GMT Last modified on Wednesday 16 November 2016 12.31 GMT In Montreal’s Saint-Henri neighbourhood, the hallmarks of gentrification shout loud and clear. Beautiful old brick buildings have been refurbished as funky shops, niche food markets and hipster cafes. Most notably, there are plenty of high-end restaurants. More than plenty, say some local residents – many of whom can’t afford to eat in any of them. Earlier this month, the city council agreed enough was enough: the councillors of Montreal’s Southwest borough voted unanimously to restrict the opening of new restaurants. The bylaw roughly follows the “one-in-six” rule, with new eateries forbidden from opening up within 25 metres of an existing one. “Our idea was very simple,” says Craig Sauvé, a city councillor with the Projet Montreal party. “Residents need to be able to have access to a range of goods and services within walking distance of their homes. Lots of restaurants are fine and dandy, but we also needs grocery stores, bakeries and retail spaces.” It’s not as though Saint-Henri is saturated with business: a number of commercial and retail properties remain empty. In that environment, some residents have questioned whether it’s right to limit any business. Others felt that something had to be done. Tensions boiled over in May this year, when several restaurants were vandalised by a group of people wearing masks. At the grocery store Parreira Traiteur, which is attached to the restaurant 3734, vandals stole food, announcing they were taking from the rich and giving to the poor. “I was really quite shocked,” says co-owner Maxime Tremblay. “I’m very aware of what’s going on in Saint-Henri: it’s getting hip, and the rents are going up. I understand that it’s problematic. They were under the impression that my store targets people from outside the area, which isn’t really the case. I’ve been very careful to work with local producers and artisans. Why would you attack a locally owned business? Why not a franchise or chain?” Not everyone is sure the change in regulation will work. “The bylaw seems very abstract to me,” says Peter Morden, professor of applied human sciences at Concordia University who has written extensively on gentrification. “I wonder about the logic of singling out restaurants. I think the most important thing for that neighbourhood would be bylaws that protect low-income and social housing.” Alongside restaurants, chic coffee shops have become emblematic of Montreal’s pace of change. As the debate rages, Montrealers are looking anxiously at what has happened to Canada’s two other major metropolises, Toronto and Vancouver. Both cities have experienced huge spikes in real-estate prices and rents, to the point where even upper-middle-class earners now feel shut out of the market. Much of Vancouver’s problem has been attributed to foreign property ownership and speculative buying, something the British Columbia government is now attempting to address. This has led to concern that many of the foreign buyers – mainly Chinese investors – could shift their focus to Montreal. For now, the city’s real estate is markedly cheaper than that of Vancouver or Toronto: the average residential property value is $364,699, compared with Toronto’s $755,755 and Vancouver’s $864,566, according to the Canadian Real Estate Association. And rent is cheaper, too: the average for a two-bedroom apartment in central Montreal is $760, compared with Toronto’s $1,288 and Vancouver’s $1,368. Montrealers have little desire for their city to emulate Vancouver’s glass-and-steel skyline. The reasons for this are debatable – the never-entirely-dormant threat of Quebec separatism, the city’s high number of rental units and older buildings, its strict rent-control laws and a small-court system seen to generally favour the rights of tenants. But regardless of why it’s so affordable, many Montrealers want it to stay that way. There is widespread hostility towards the seemingly endless array of glass-and-steel condos that have come to dominate the Vancouver and Toronto skylines. If Montreal does look a bit grittier than other Canadian cities, it owns a unique cultural cachet. The inexpensive cost of living makes it much more inviting to artists, which in turn makes the city a better place to live for everyone; its vibrant musical scene is the envy of the country, and its film, dance and theatre scenes bolster the city’s status as a tourist attraction. In this context, Montreal’s restaurant bylaw is designed to protect the city’s greatest asset: its cheap rents. “I would argue this is a moderate bylaw,” says Sauvé. “We’re just saying one out of every six businesses can be a restaurant. There’s still room for restaurant development.” He says the restaurant restriction is only part of Projet Montreal’s plans, which also include increased funding for social housing. “Right now, the city sets aside a million dollars a year to buy land for social housing. Projet Montreal is proposing we spend $100m a year. The Quebec government hasn’t helped with its austerity cuts: in the last two budgets, they have cut funding for social housing in half. There are 25,000 people on a waiting list.” Perhaps surprisingly, the provincial restaurant lobby group, the Association des Restaurateurs du Quebec, doesn’t have an issue with the bylaw. “We understand the impact gentrification can have,” says spokesperson Dominique Tremblay. “We understand the need for a diversity of businesses. Frankly, if there are too many restaurants on one street, it’ll be that much harder for them to stay open. There won’t be enough customers to go around.” Even despite having been robbed, Tremblay says he recognises the anxiety that swirls around the subject of gentrification. “People feel a neighbourhood loses its soul,” he says. “I get that. I’d rather we find a dialogue, not a fight.”

Bay Street still has Canada’s most expensive office space http://renx.ca/bay-street-still-canadas-expensive-office-space/ Bay Street in Toronto has the most expensive office space in Canada, and no other city comes close to matching the $68.52 per square foot average rent that’s being asked for in the heart of the country’s financial district. JLL Canada recently released its “Most Expensive Streets for Office Space” report, which ranks Canadian cities by their highest asking rents. It shows many companies are still willing to pay a premium for the most expensive spaces, and competition is growing to get into prominent financial, retail and government hubs. “The most significant trend that we are seeing across major markets is that there are a large number of new developments underway,” said JLL Canada president Brett Miller. “Although we have only seen minor changes to the top market rents thus far in 2014, we anticipate that as the new inventory comes to market, overall rents will decrease in the older class-A stock whilst headline rents in new developments may raise the top line rents.” Here are the most expensive streets in nine major Canadian cities 1. Bay Street, Toronto, $68.52 per square foot Bay Street held strong in first place for the fourth year running. It features the headquarters of major Canadian banks and is home to many investment banks, accounting and law firms. Brookfield Place, at 161 Bay St., continues to command the highest office rents of any building in Canada at $76.54 per square foot. The average market rent in Toronto is $34.82 per square foot. (Bay St. looking north from Front St. shown in the image,) 2. 8th Avenue SW, Calgary, $59.06 per square foot 8th Avenue SW again has the highest average gross office rents in Calgary. Large vacancies and availabilities along this corridor typically account for significant activity and command market-leading rates. Large oil and gas companies have historically clustered around the central business district in this area. The top rent on the street is $64.40 per square foot and the average market rent in Calgary is $46 per square foot. 3. Burrard Street, Vancouver, $58.87 per square foot Burrard Street has dropped to third place despite a slight increase in average asking rent from $58.47 in 2013. Approximately 18.3 per cent of downtown class-A office supply is located on Burrard Street between West Georgia Street and Canada Place. The vacancy rate in these six buildings sits at 1.6 per cent, which justifies this location commanding some of the highest rental rates in the city despite the impending influx of new supply that’s putting downward pressure on rents throughout the central business district. The top rent on the street is $66.06 per square foot and the average market rent in Vancouver is $38.81 per square foot. 4. Albert Street, Ottawa, $52.10 per square foot Albert Street remained in fourth position with average rents decreasing slightly from $53.40 per square foot. Albert Street is mainly home to government-related office towers, including numerous foreign embassies, and a few of the largest Canadian business law firms. There seems to be a wait-and-see approach in anticipation of the 2015 federal election regarding the government’s intentions to lease or return more space to the market. The top rent on the street is $53.54 per square foot and the average market rent in Ottawa is $30.90 per square foot. 5. 101st Street NW, Edmonton, $46.71 per square foot The average asking rent dropped from $48.19 per square foot, but 101st Street NW is expected to remain the most expensive in Edmonton with the recent commitment to build the arena district, a large-scale, mixed-use project incorporating the city’s new National Hockey League arena. This is expected to revitalize some of the most important corners on the street. The top rent on the street is $54.15 per square foot and the average market rent in Edmonton is $28.30 per square foot. 6. René-Lévesque W, Montreal, $44.28 per square foot The average gross rent on the street hasn’t changed significantly year over year, but the total value of tenant inducement packages has nearly doubled. The most expensive building on the street (1250 René-Lévesque W) rents for $52.76 per square foot but has seen some downward pressure of two to four dollars on its net rent due to 170,000 square feet of vacant space left behind by Heenan Blaikie. The average market rent in Montreal is $30.38 per square foot. 7. Upper Water Street, Halifax, $36.42 per square foot Upper Water Street has maintained seventh place despite its average asking rent dropping from $36.65 per square foot last year. New construction coming on stream is expected to put downward pressure on rents in existing office buildings. The top rent on the street is $36.62 per square foot and the average market rent in Halifax is $27.44 per square foot. 8. Portage Avenue, Winnipeg, $35.67 per square foot Portage Avenue held strong in eighth place, with its average rent increasing from $35.17 per square foot. The class-A market remains tight and is expected to remain so through 2015. The top rent on the street is $37.32 per square foot and the average market rent in Winnipeg is $23.62 per square foot. 9. Laurier Boulevard, Québec City, $27.50 per square foot Laurier Boulevard held its ninth-place position despite the average rent dropping from $28.14 per square foot. There’s been no notable increase in the average gross rent and the vacancy rate on the street remains low at 5.2 per cent compared to the rest of the market’s 7.8 per cent. The top rent on the street is $28.98 per square foot and the average market rent in Québec City is $21.89 per square foot. JLL manages more than 50 million square feet of facilities across Canada and offers tenant and landlord representation, project and development services, investment sales, advisory and appraisal services, debt capital markets and integrated facilities management services to owners and tenants.

Trouble on The Main The former home of American Apparel on St. Laurent Blvd. now carries a For Rent sign. “I won’t deny that the construction on the street did affect traffic,” says Dan Abenhaim, the chain’s Canadian regional director. Other shop owners say the recession and high rents have hurt business on along the strip. Photograph by: John Mahoney, The Gazette By Irwin Block, The GazetteApril 24, 2009 The former home of American Apparel on St. Laurent Blvd. now carries a For Rent sign. “I won’t deny that the construction on the street did affect traffic,” says Dan Abenhaim, the chain’s Canadian regional director. Other shop owners say the recession and high rents have hurt business on along the strip. It’s known to generations as The Main and it’s as Montreal as smoked meat and the Habs. St. Laurent Blvd. is us, and in tribute to its Portuguese component, city officials on Friday inaugurated a dozen marble-topped benches between Bagg and Marie Anne Sts. But things are not going that well for some merchants, especially on the trendiest part of the street between Sherbrooke St. and Pine Ave. It’s still home to such fancy eateries as Buona Notte and Primadonna, but in the past months several major tenants have closed. They include an American Apparel store and a Mac Cosmetics outlet; the space formerly occupied by Sofia Grill at the northwest corner of Prince Arthur St. and St. Laurent is for rent, as are several other shops farther north. Dan Abenhaim, American Apparel’s Canadian regional director, said that after five years the firm decided not to renew the lease. “I won’t deny that the construction on the street did affect traffic and we decided we want to open in another location.” He also said that over five years “the street has changed and the traffic is more north of Pine Ave.” However, clothing shops are also hurting north of Pine, where Adam & Lilith has closed one of two adjoining shops on St. Laurent. According to assistant manager Carmel Pacaud, people are still attracted to the street but they are not buying as they used to. Other shop owners blame almost two years of disruptive road repairs that ended last year, as well as the recession and high rents. “The city has murdered the street,” said one real estate agent, who spoke on the condition his name not be used. People who were put off by the construction are not coming back and there is a moratorium on new restaurants and bars between Sherbrooke and Mount Royal Ave., he added. Rent at the former Mac Cosmetics store is about $7,500 a month for 1,600 square feet. Rents tend to decrease north of Pine. “It’s a little distressing, slower than usual” remarked Marnie Blanshay, who owns Lola & Emily ladies wear just south of the abandoned American Apparel. Many who were discouraged from shopping there by the ripping up and repaving of the strip have not returned, she observed. And because few retail clothing shops remain, hers is more of a “destination store” with fewer shoppers coming by to go from store to store checking out and comparing. “It reminds me of Crescent St. in the 1990s,” she said, adding that “the landlords believe it’s better than it is and need to reduce rents.” When rents go down, the creative people will return to reinject the street’s normal vitality, she said. “St. Laurent Blvd. is not a street where chains succeed.” Apart from Jean Coutu and Pharmaprix, American Apparel was the only chain outlet on the street, noted André Beauséjour, executive director of the Société de développment du Boulevard St. Laurent. He said the vacancy rate between Sherbrooke and Mount Royal is a “normal” two per cent. A stroll up the boulevard yesterday indicated that many stores that have become institutions – Bar Bifteck, Salaison Slovenia, Schreter’s, Coco Rico, Moishe’s, Segal’s grocery, Berson Monuments – are still going concerns. And there was the proverbial lunchtime lineup inside Schwartz’s. But if you have a concept, there is lots of space for rent, including the former Laurentian Bank at St. Laurent and Pine. – all 5,400 square feet. iblock@thegazette.canwest.com © Copyright © The Montreal Gazette

``What happens in the next leg down? We obviously have a huge crisis in financial institutions, but the crisis in the economy is just beginning to be felt,'' Bonderman told a private equity conference in Hong Kong today. ``The global recession is likely to be a deep one and a prolonged one, not a V-shape, not a U-shape, more an L-shape one.'' The credit contagion that began with a surge in subprime mortgage delinquencies is driving the U.S., European and Japanese economies toward recession, and prompted China to unveil a $586 billion stimulus package. The International Monetary Fund last week predicted economic contractions next year in the U.S., Japan and the euro region, the first simultaneous recession since the end of World War II. David Rubenstein, the 59-year-old co-founder of Washington- based Carlyle Group, echoed Bonderman's pessimism. Rubenstein said at the Hong Kong conference that the recession will last for at least a year, and that U.S. unemployment may rise as high as 10 percent. U.S. housing prices may have ``a significant way'' to fall because they're still high by historical standards and sliding rents are reducing the allure of home ownership, said Bonderman, whose firm's funds oversee more than $50 billion. Prices `Way High' TPG's fourth buyout fund, launched in 2003, has delivered average annual returns of 31 percent, according to the California Public Employees' Retirement System, an investor in a number of TPG's funds. Home prices in 20 U.S. metropolitan areas slid 17 percent in August as foreclosures rose, according to the S&P/Case-Shiller price index. ``Housing prices are still way high by historical standards,'' Bonderman said.

New York Times, October 1, 2008 Failed Deals Replace Boom in New York Real Estate By CHARLES V. BAGLI After seven years of nonstop construction, skyrocketing rents and sales prices, and a seemingly endless appetite for luxury housing that transformed gritty and glamorous neighborhoods alike, the credit crisis and the turmoil on Wall Street are bringing New York’s real estate boom to an end. Developers are complaining that lenders are now refusing to finance projects that were all but certain months or even weeks ago. Landlords bewail their inability to refinance skyscrapers with blue-chip tenants. And corporations are afraid to relocate within Manhattan for fear of making the wrong move if rents fall or a flagging economy forces layoffs. “Lenders are now taking a very hard look at each particular project to assess its viability in the context of a softening of demand,” said Scott A. Singer, executive vice president of Singer & Bassuk, a real estate finance and brokerage firm. “There’s no question that there’ll be a significant slowdown in new construction starts, immediately.” Examples of aborted deals and troubled developments abound. Last Friday, HSBC, the big Hong Kong-based bank, quietly tore up an agreement to move its American headquarters to 7 World Trade Center after bids for its existing home at 452 Fifth Avenue, between 39th and 40th Streets, came in 30 percent lower than the $600 million it wanted for the property. A 40-story office tower under construction by SJP Properties at 42nd Street and Eighth Avenue for the past 18 months still does not have a tenant. And the law firm of Orrick, Herrington & Sutcliffe last week suddenly pulled out of what had been an all-but-certain lease of 300,000 square feet of space at Citigroup Center, deciding instead to extend its lease at 666 Fifth Avenue for five years, in part because they hope rents will fall. “Everything’s frozen in place,” said Steven Spinola, president of the Real Estate Board of New York, the industry’s lobbying association, shortly after the stock market closed on Monday. Barry M. Gosin, chief executive of Newmark Knight Frank, a national real estate firm based in New York, said: “Today, the entire financial system needs a lubricant. It’s kind of like driving your car after running out of oil and the engine seizes up. If there’s no liquidity and no financing, everything seizes up.” It is hard to say exactly what the long-term impact will be, but real estate experts, economists and city and state officials say it is likely there will be far fewer new construction projects in the future, as well as tens of thousands of layoffs on Wall Street, fewer construction jobs and a huge loss of tax revenue for both the state and the city. Few trends have defined the city more than the development boom, from the omnipresent tower cranes to the explosion of high-priced condominiums in neighborhoods outside Manhattan, from Bedford-Stuyvesant and Fort Greene to Williamsburg and Long Island City. Some developers who are currently erecting condominiums are trying to convert to rentals, while others are looking to sell the projects. After imposing double-digit rent increases in recent years, landlords say rents are falling somewhat, which could hurt highly leveraged projects, but also slow gentrification in what real estate brokers like to call “emerging neighborhoods” like Harlem, the Lower East Side and Fort Greene. At the same time, some of Mayor Michael R. Bloomberg’s most ambitious large-scale projects — the West Side railyards, Pennsylvania Station, ground zero, Coney Island and Willets Point — are going to take longer than expected to start and to complete, real estate experts say. “Most transactions in commercial real estate are on hold,” said Mary Ann Tighe, regional chief executive for CB Richard Ellis, the real estate brokerage firm, “because nobody can be sure what the economy will look like, not only in the near term, but in the long term.” Although the real estate market in New York is in better shape than in most other major cities, a recent report by Newmark Knight Frank shows that there are “clear signs of weakness,” with the overall vacancy rate at 9 percent, up from 8.2 percent a year ago. Rents are also falling when landlord concessions are taken into account. The real estate boom has been fueled by a robust economy, a steady demand for housing and an abundance of foreign and domestic investors willing to spend tens of billions of dollars on New York real estate. It helped that lenders were only too happy to finance as much as 90 percent of the cost on the assumption that the mortgages could be resold to investors as securities. But that ended with the subprime mortgage crisis, which has since spilled over to all the credit markets, which have come to a standstill. As a result, real estate executives estimate that the value of commercial buildings has fallen by at least 20 percent, though the decline is hard to gauge when there is little mortgage money available to buy the buildings and therefore few sales. Long after the crisis began in 2007, many investors and real estate executives expected a “correction” to the rapid escalation in property values. But after Lehman Brothers, the venerable firm that had provided billions of dollars of loans for New York real estate deals, collapsed two weeks ago, it was clear that something more profound was afoot. And there was an immediate reaction in the real estate world: Tishman Speyer Properties, which controls Rockefeller Center, the Chrysler Building and scores of other properties, abruptly pulled out of a deal to buy the former Mobil Building, a 1.6 million-square-foot tower on 42nd Street, near Grand Central Terminal, for $400 million, two executives involved in the transaction said. Commercial properties are not the only ones facing problems. On Friday, Standard & Poor’s dropped its rating on the bonds used in Tishman’s $5.4 billion purchase of the Stuyvesant Town and Peter Cooper Village apartment complexes in 2006, the biggest real estate deal in modern history. Standard & Poor’s said it cut the rating, in part, because of an estimated 10 percent decline in the properties’ value and the rapid depletion of reserve funds. The rating reduction shows the growing nervousness of lenders and investors about such deals, which have often involved aggressive — critics say unrealistic — projections of future income. “Any continued impediment to the credit markets is awful for the national economy, but it’s more awful for New York,” said Richard Lefrak, patriarch of a fourth-generation real estate family that owns office buildings and apartment houses in New York and New Jersey. “This is the company town for money,” he said. “If there’s no liquidity in the system, it exacerbates the problems. It’s going to have a serious effect on the local economy and real estate values.”