Quote:
Originally Posted by CMD UW
Ahh, most real estate development/owner/management companies are tied to pension funds or private equity, they aren't 'cash rich'. They get their pound of flesh through management fees.
Are you saying that a building filled with government tenants is not what REITs/Pension Funds want...you're so wrong. Government tenants are highly coveted as they as the least risky and typically sign long term leases.
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You've been living in the Edmonton bubble too long
It really depends on the type of portfolio that the fund is trying to build. Government buildings are typically less desirable from an asset point of view. And in this market, having one sole tenant with one long term lease may not be the best play for an investor
It'll be interesting to see what happens when the RFP coms out. There is no way the city is going to pay $40/ Sf for a new building, which is around what the market is looking for for new higher quality construction. If they do, they'll be lynched by taxpayers.
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