After 23 years in downtown Barrie, Hassey Property Group is moving our office to the south end of Barrie. We have thoroughly enjoyed our time in beautiful downtown Barrie and it is truly a bittersweet move for us. Hassey Property Group has grown significantly over the past few years and our new space will be better suited for our growing family.
Our existing building is believed to be well over 100 years and has had some renovations over the years but still holds the unique characteristics of a century home. The building was purchased in 1995 and at the time Hassey Property Group consisted of 3 people. The majority of the house was leased out to various other business’ and slowly over time as the Hassey Property Group grew, so did the space we occupied in the building. The company has now grown to point where we need more space and we are excited to start a new chapter in the Hassey Property Group history at our new Garden Village project.
What is a CAP rate?
A CAP rate (Capitalization Rate), is the rate of return for real estate investment property which is derived from income the property produces.
The basic equation for explaining CAP rate is:
CAP rate = Net Operating Income (NOI) / Current Market Value (Sale Price)
As well, if you have a desired CAP rate you can use it to determine what price you wish to offer for a property. If you know what the Net Operating Income will be you may rearrange the equation above as follows:
Current Market Value (Sale Price) = Net Operating Income (NOI) / CAP rate
Net Operating Income
Net operating income (NOI) is determined by taking all annual income generated by an income-producing property after all income collected from operations is taken into account, and deducting all operational expenses.
Why is this important?
It is common practice to receive spreadsheets produced for properties outlining income and expenses that have certain expenses such as property management fees excluded or annual maintenance costs stated lower than average for a comparable property, which are often justified by the current owner performing these duties resulting in lower expenses and higher NOI. It is important to analyze all statements provided on a property thoroughly and to be able to highlight any anomalies and inconsistencies. In a case where a major expense is not reported accurately or if the operational expenses do not fall in line with how you or your purchaser will be operating the property, the NOI will be skewed and result in a perceived CAP rate which does not reflect the actual operations of the income producing property.
When travelling between municipalities, as a result of their autonomy, the statement, “not all Development Charges are equal”, seems like an obvious fact. However, within the confines of a single municipality this statement seems to be often overlooked. It is extremely important for Landlords and Tenants to be aware of different development charges within their municipalities since often different business uses are subject to quite different charges. Continue reading “Not All Development Charges Are Equal”
Whether you are a tenant, landlord, developer, or investor, municipal parking requirements for commercial and industrial buildings are not something you want to ignore. Parking requirements differ quite a bit between municipalities and therefore must be examined and understood extensively in order to fully understand the consequences they have on leasing and functionality of the property. Continue reading “Be Aware of Parking Requirements”
With many city centers, like Barrie, going through cycles of population growth, a natural product in such cases is a need for residential, commercial, and industrial new developments
. New development, in any form, requires tedious planning on both the municipality and developers behalf. The positive outcomes of these new developments are large capital injections and increases in operational revenue through increased taxes. Continue reading “Development Charges and the Effects”
Every winter the snow falls and every spring it melts. As a homeowner or business owner there are certain steps and things to look for in order to ensure a smooth transition into spring. With snow melting this can pose some serious issues that can be mediated and prevented. Continue reading “Are You Ready For Spring?”
Today, the City of Barrie will be hosting an Open House meeting to discuss proposed new Mixed Use zones aimed at the Intensification Areas. These areas are considering a mid-rise of built form, ranging from three to eight stories.
The areas in questions include the Urban Growth Centre, and the major corridors of Bayfield Street, Dunlop Street, Essa Road, Duckworth Street and Yonge Street.
These new mid-rise buildings would consist of a mix of commercial and residential uses.
Continue reading “Barrie “Mixed-Use Intensification Zones””
Barrie’s Near Future
According to the Canadian Mortgage and Housing Corporation Barrie is expecting an 8.8% increase in Single-Detached housing starts moving into 2014 and a 5.3% increase the year following. Similarly Multiple dwelling starts are expected to see positive increases proceeding into 2014 and an increase in percentage change continuing into 2015. As well, we expected to see an increase in the average price of a home on MLS of about 2.85% over the next two years, coupled with an increase in sales. According the Canadian Mortgage and Housing Corporation Barrie is also expecting a 10% reduction in the vacancy rate this coming year and increased average rent. So why do these statistics matter? Continue reading “Barrie and Canada: Investment Outlook”
Of course everyone, when buying a home or property, has heard that it is all about location. This statement could not be truer than when it comes to commercial property. With the days of the phone book slowly evaporating, having that perfect spot to place your business is an essential key success factor. However, where the perfect location is for your business depends a lot on what your business does.
Continue reading “Location, Location, Location”
Whether you have a residential, commercial or industrial property, hiring a property management firm in Barrie is an essential component of turning your real estate investment into a financial success. Professional property management firms are well versed in their industry and can improve the quality of a property by utilizing their vast wealth of industry knowledge. While it may be tempting to manage your own property, consider the following reasons why you should hire a property management firm. Continue reading “Why You Should Hire a Property Management and Leasing Firm”