Winnipeg Free Press

Winnipeg Free Press (Newspaper) - June 19, 2012, Winnipeg, Manitoba C M Y K PAGE B5 610 Corydon Ave 475- 7244 PARKING BEHIND THE STORE Mon - Wed 9: 30 - 6: 00 Thu & Fri 9: 30 - 7: 30 Sat 9: 30 - 5: 30 From $ 62 50 From $ 59 00 From $ 18 00 From $ 45 00 SUITS Reg. $ 595 00 to $ 995 00 SPORT JACKETS Reg. $ 395 00 to $ 750 00 PANTS & JEANS Reg. $ 95 00 to $ 285 00 DRESS SHIRTS Reg. $ 120 00 to $ 195 00 SPORT SHIRTS Reg. $ 118 00 to $ 195 00 KNITWEAR Reg. $ 64 00 to $ 195 00 TIES Reg. $ 95 00 to $ 110 00 SUMMER SALE JUNE 2012 UOMO CASUALE From $ 199 00 From $ 47 50 From $ 299 00 Clothing for men BUSINESS EDITOR: STEVE PONA 697- 7264 business@ freepress. mb. ca I MARKET DETAILS B6,7 I winnipegfreepress. com TUESDAY, JUNE 19, 2012 B 5 T HE recreational property market is booming again after the misery of Lake Manitoba flooding washed over the entire cottage country marketplace last year. But there is a catch: Prices are down. The Manitoba market had the added calamity of heartbreaking images of water inundating lakefront properties at Twin Beaches and The Narrows last year, but the provincial experience was similar to what was happening around the country, according to the Re/ Max Recreational Property Report issued on Monday. It found sales are ahead of last year's levels in 70 per cent of communities examined across the country, but prices are trending downward. " Last year was a do- nothing year in recreation properties in Manitoba, all caused by flooding," said Al Shrupka of Re/ Max Associates in Winnipeg. " We heard stories of agents that live in cottage country that sold nothing last year." The Re/ Max report says starting price for a three- bedroom, winterized recreational property on a standard- sized waterfront lot on Lake Winnipeg is about $ 250,000 this year, down from $ 280,000 last year. Melodie Ateah of Ateah Realty of Victoria Beach is experiencing just that dynamic at her brokerage business, which specializes in cottage country up the east side of Lake Winnipeg. While her sales volumes are up strongly this year - 43 sales already compared to 62 in total last year - prices are down about 20 per cent. But she is not ready to pin all of the price declines on last year's flooding. " I would say there was a bit of a price bubble between 2006 and 2008, but the uncertainty in the economy changes things," she said. " In many cases, we are dealing with owners of second properties, and when there is a downturn in the economy, that is the first thing that goes out the window." Even though prices are down, Shrupka and Ateah agree balance has returned to the market. There are many more people in the market and there's plenty of inventory for sale. " There's more than 200 MLS ( Multiple Listing Service) sales already this year," Shrupka said. " Last year, I bet we would have been lucky to have 50." Peter Squire, spokesman for WinnipegRealtors, said it's a healthier, better market for those who thought cottages were too expensive. " In the city where it is such a strong seller's market, people don't know what it's like to have a chance to pause and think before you have to put an offer in," Squire said. " But people interested in cottages have the chance to kick the tires." Shrupka said the west side of Lake Winnipeg had its first million- dollar sale - a $ 1.1- million property at Chalet Beach - earlier this year. " That's something I never would have thought was possible," he said. Re/ Max said of the 33 markets included in its report, sales were ahead of last year's mark in 70 per cent of the communities, while six per cent were in line with a year ago. Starting prices were down in 49 per cent of markets, while 33 per cent were unchanged. The remaining saw an increase. " Affordability has provided some serious stimulus, but renewed consumer confidence is the true driver," said Michael Polzler, Re/ Max executive vice- president for the Ontario- Atlantic region. Re/ Max noted sales among baby boomers have softened compared with previous years, as low prices in the southern United States have drawn away some buyers. However, the firm said younger families and first- time buyers have stepped in to fill the void in most markets. - with files from The Canadian Press martin. cash@ freepress. mb. ca ANALYSTS say a U. S. buyer for the business division of Manitoba Telecom Services Inc. would make sense, but the telecom company refused to comment on a report that it's putting Allstream up for sale to foreign buyers. A report in the Globe and Mail said MTS ( TSX: MBT) is trying to find a buyer for Allstream and has hired investment bank Morgan Stanley to find foreign suitors, particularly in the United States, after failing to find a Canadian buyer. MTS wouldn't comment on a possible sale on Monday and that its Allstream division is making inroads in the growing market for Internet Protocol services to businesses. " With a clear strategy, strong traction in the growing market for IP services and six consecutive quarters of year- over- year EBITDA growth, Allstream is the strongest it has been in years," MTS said in a statement. " We routinely talk to lots of companies - most of whom are our customers - about ways to grow and strengthen Allstream. We do not comment on rumour or speculation." The Allstream division provides Internet Protocol services such as voice and data to businesses in Canada and parts of the U. S. and has said such services will lead growth in the division. Macquarie Research analyst Greg MacDonald said a U. S. wireless carrier such as AT& T or Verizon could see an opportunity in the federal government's plans to reduce foreign- ownership restrictions on small telecom companies. But MacDonald said there's no guarantee a U. S. wireless carrier would jump at the opportunity now because " they've had an interest in the asset in the past and... their interests are now in other areas." Analysts have routinely asked MTS if it would sell Allstream, which has been restructuring over the past several years. Allstream competes with Bell ( TSX: BCE) and Telus ( TSX: T) for business customers. Manitoba Telecom Services acquired Allstream, formerly AT& T Canada - which faced restrictive rules when it was operating in Canada - for $ 1.7 billion. The federal government plans to eliminate restrictions on foreign ownership for telecom companies with a 10 per cent market share or less. The Globe and Mail report said some analysts have estimated a sale price of between $ 800 million to $ 900 million, while others said most potential buyers would value it at $ 400 million or less. - The Canadian Press THEY don't just want to live downtown; those new condominium dwellers want to work in the core, too. A new study from Cushman & Wakefield Canada says the national office vacancy rate in the country's central cores has dropped to five per cent for only the second time in the last 27 years as businesses scramble to find space for employees. Winnipeg was among the Canadian cities experiencing strong demand for downtown office space. Class A office space in downtown Winnipeg is at a premium, with the vacancy rate down to a low of 3.1 per cent in the second quarter from five per cent in the first quarter. The report noted Winnipeg experienced a strong second quarter in both the suburbs and downtown. There was a total of 118,182 square feet of positive absorption in the central business district, bringing total vacancy down to 6.3 per cent by the second quarter from 7.5 per cent in the first. In the suburbs, the vacancy rate dipped more than a whole point from the first to second quarters to 10.3 per cent. Last year, suburban vacancy was at 14.3 per cent. " The market has been active as government has leased a significant amount of competitive office space," said Wayne Sato, Cushman & Wakefield's Winnipeg vice- president. " Government demand, combined with modest private- sector demand, will significantly tighten the market. We've seen upward pressure on rental rates as a result, likely to continue into the latter half of 2012." Scott Chandler, C& W Canada executive managing director, valuation and advisory services, said, " Downtown areas are picking up much of the new development. There is always new construction in the suburbs to some degree but very much so this is a downtown story." Cushman & Wakefield said the national vacancy rate in central office districts dropped to five per cent in the second quarter of 2012, down from 5.4 per cent just a quarter earlier. " With 24- hour downtowns and very strong central areas in Canada, people want to be close to where their employees are," Chandler said. " It costs a lot to build, but if you can keep your employee retention and attract new employees because of your location and access to transit, your cost per employee is mitigated despite the high cost per square foot." The trend has pushed development to new levels, as shown by Brookfield Office Properties' decision last week build a 44- storey $ 464- million office tower at Toronto's Bay Adelaide Centre. " There is a significant new office development cycle currently taking place in some markets - a level of building activity not seen since the early 1990s," said Pierre Bergevin, chief executive of C& W Canada. While space in downtown cores is getting tighter, the evidence suggests the market in the suburbs has slowed. The national vacancy rate for the suburbs was 9.9 per cent in the second quarter, the same as a quarter earlier. " Another factor affecting suburban markets, particularly in Toronto and Vancouver, is a reverse migration that has large organizations looking to move back into the downtown core. Factors such as highly sophisticated and ' green' buildings, more collaborative workspaces, fresh air and ( heating, ventilation and air- conditioning) systems and floor- to- ceiling windows providing lots of natural light have businesses on the move," C& W said in its report. Here's how C& W sees vacancy rates in other major city cores: Vancouver, up slightly to 3.7 per cent; Calgary, 3.1 per cent, down from 3.6 per cent; Toronto, 4.8 per cent, down from five per cent; Ottawa, 5.8 per cent, down from six per cent; and Montreal, 6.1 per cent, down from 6.4 per cent. - Postmedia News / staff Downtown office space in demand across Canada By Garry Marr and Martin Cash Starting prices for recreational properties on Lake Winnipeg, according to the Re/ Max Recreational Property Report 2012: CABIN FEVER Manitoba cottage market booming again, but prices are down By Martin Cash FARMLINK Marketing Solutions has acquired majority ownership of PV Commodities, a cash grain brokerage firm based in Winnipeg. Officials from the grainmarketing consulting firm said the acquisition was in response to increasing demand from FarmLink's farmer clients to help them find the best returns for their crops in the face of a rapidly evolving marketplace. " Our clients are increasingly asking us to help find and execute the best deals, at a time when changing market conditions are driving a sharp increase in buyer interest," said Brenda Tjaden Lepp, co- founder of FarmLink. " By moving into the grain brokerage business, we will help farmers capitalize on these new market opportunities." PV Commodities' principals, Darcy Caners and Colin Hoeppner, will continue to lead the operations as it expands to provide professional brokerage services across Canada for all grain, oilseed, pulse and special crops. - staff FarmLink buys stake in grain brokerage $ 300,000 2009 $ 250,000 2010 $ 280,000 2011 $ 250,000 2012 Report says MTS seeking foreign buyer for Allstream By LuAnn LaSalle B_ 05_ Jun- 19- 12_ FP_ 01. indd B5 6/ 18/ 12 8: 16: 06 PM ;