A Bright Future Thanks To The LRT?
New transportation and real estate developments in the LeBreton area could lead to a big future of additional commercial real estate investments. 2017 has seen some big sales/purchases within Ottawa and is demonstrating the big changes taking place in the city.
Around mid-September, real estate history was made in Ottawa when the Constitution Square was sold for almost $500-million. Now, because rail transport is going to be built downtown by 2018, commercial investors are being advised to study the scenario carefully and potentially invest in areas that will shape the future of Ottawa’s downtown.
Avison Young managing partner Michael Church is quite excited about these new developments, and it’s not just about the LeBreton flats. “Clearly, something is going to happen there,” he said. “I can’t wait to see what happens when phase two of the LRT gets finished. Phase one will be a taste of it, but you won’t get the full impact of it until some guy can go to a park-and-ride in Kanata and be downtown in half an hour and not have to drive on the Queensway. That why I think you’ll see these kinds of numbers (Constitution Square’s record-breaking price) in the future simply because of proximity to everything. Established assets are only going to get more valuable.”
While apartment buildings were a big portion of sales last year, it wasn’t the case as much this year. However, it has been the complete opposite for office buildings.
What are your views on developments in Ottawa for next year?