[Moncton] Junction Urban Village | Mixed Residential Commercial Urban Development

[jonny golden]

Originally Posted by MonctonRad

There is now a construction card on the CCD Canada website for "The Junction."

Of course, since it is behind a subscription wall, I have no additional information. It would be hard to imagine this is for Tannery Place North, since this building is already under construction. Could this mean that one of the two buildings on the lot next to GoodLife might be in pre-construction phase?

I could see Westmount proceeding with the third apartment building. Junction Hall however, as a commercial building, will probably require some confirmed tenants before construction proceeds.

I don't know how significant this construction card is, but an interesting observation nonetheless.

That is very interesting indeed, and I agree that it's not likely referring to Tannery North. Everything I've seen on CCD is posted well before construction projects start. It'll be interesting to see what comes out of this, hopefully something distinctive. There are a lot of options in the listing that Westmount has to offer to developers.
The listing again:

https://cwatlantic.com/listings/junction-urban-village/

[MonctonRad]

They are well along on putting in the concrete pillars on the first floor of Tannery Place North.

[MonctonRad]

The Junction card on CCD Canada was one of the featured projects on the website today. We have some additional information:

THE JUNCTION

CCD Ref. Number : NB154481-18-09

Stage : 3-Planning or drawing

Published : September 27, 2018

Last updated : June 22, 2021

Starting Date (estimated) : Not available

Size : Mid-sized ($8,775,000)

Work type : New construction

Sector : Private

Category : 2-Commercial

Subcategories : 2A-Office Buildings & Banks, 2C-Retail Trade

Disciplines : ARCH, ELEC, EQUI, HVAC, MEC-B, STRUC, OTHER*

Location :

MONCTON (NB)
(Moncton - Richibucto)

Description :
NEW OFFICE & RETAIL TOWER -
Located in Moncton, this project (The Jonction) estimated at $8 775 000 is in the planning stage. Works concern the construction of a new commercial building, office and retail space.

- Contractor: INFORMATION AVAILABLE TO SUBSCRIBERS
- Architect: INFORMATION AVAILABLE TO SUBSCRIBERS

So, the project currently being dangled before contractors is Junction Hall.



This is exciting. This means that this is the building that the developers want to build next. Nothing will happen of course until after Tannery Place North is completed, but I would imaging they must be looking at starting this in 2023.

They are estimating a nearly $9M project.

[jonny golden]

I figured that the CCD posting was for phase 3 by the current developers and not a result of the the Cushman & Wakefield listing. At some point we could see another builder come on board to develop a separate project at the Junction as there are three parcels of land available.

[MonctonRad]

Freshii in the Higgins Block on Main Street is now closed. They apparently plan on reopening in Tannery Place South sometime in late September.

[MonctonRad]

Originally Posted by jonny golden

I figured that the CCD posting was for phase 3 by the current developers and not a result of the the Cushman & Wakefield listing. At some point we could see another builder come on board to develop a separate project at the Junction as there are three parcels of land available.

I just noticed that the building facing Main Street, next to Tannery Place North is no longer marked as a "future hotel" but instead as "future mixed use". I wonder if Home 2 Suites has backed out due to the pandemic and market conditions???

[jonny golden]

I was going by Freshii this morning and looking inside, I noticed that they already have some stuff packed up. It looks like they're getting ready to start the move.

And I've been wondering if a hotel at the Junction would be a good decision by the developers. I'm not sure the business is there, in light of the two new hotels just added into the market.

[theshark]

Mixed use could be a combo of ground retail, hotel and condos/apartments in my book

[MonctonRad]

Originally Posted by theshark

Mixed use could be a combo of ground retail, hotel and condos/apartments in my book

Indeed, like FiveFive Queen, but I would bank more on ground floor retail/commercial/restaurant and upper level apartments myself, similar to Tannery Place North and South.

[jonny golden]

Originally Posted by MonctonRad

Indeed, like FiveFive Queen, but I would bank more on ground floor retail/commercial/restaurant and upper level apartments myself, similar to Tannery Place North and South.

I would say their focus now is residential. I can't see them adding another hotel into the market, and even the office building idea would seem to be futile in light of the situation now. They've been successful in having both Tannery Place buildings fully pre-leased, so I think they'll stick with that model. Condo's would be interesting though. I bet they'd sell like hot cakes in that location.

It makes me wonder about the Terminal Plaza building just down the street. Crombie being a commercial real estate developer, what are they going to do with it? It's unfortunate that they're continuing to just to sit on it.

[MonctonRad]

Originally Posted by jonny golden

It makes me wonder about the Terminal Plaza building just down the street. Crombie being a commercial real estate developer, what are they going to do with it? It's unfortunate that they're continuing to just to sit on it.

Yes, I agree with you. The office market is in the toilet and won't recover for a long time (if ever). If Crombie intends to renovate 1222 Main for pre-leased office space, then the building may remain empty for another couple of decades.

Crombie is either going to have to bite the bullet, and renovate the building for commercial space purely on spec, or pivot, and convert the building either into a hotel, or condos or apartments. The idea of yet another hotel in the Avenir Centre neighbourhood may seem to be a stretch, but 1222 Main has the advantage of being immediately next to the arena, which is a definite plus.

Now, think if they also redevelop the vacant lot next door (and the old Telegraph Building) at the same time, as part of an even larger project, to include tourism related retail, a downtown market, a sports bar (like La Cage) and an upscale restaurant. If they did this, the transformation of the Avenir Centre precinct would be complete.

[jonny golden]

Originally Posted by MonctonRad

Yes, I agree with you. The office market is in the toilet and won't recover for a long time (if ever). If Crombie intends to renovate 1222 Main for pre-leased office space, then the building may remain empty for another couple of decades.

Crombie is either going to have to bite the bullet, and renovate the building for commercial space purely on spec, or pivot, and convert the building either into a hotel, or condos or apartments. The idea of yet another hotel in the Avenir Centre neighbourhood may seem to be a stretch, but 1222 Main has the advantage of being immediately next to the arena, which is a definite plus.

Now, think if they also redevelop the vacant lot next door (and the old Telegraph Building) at the same time, as part of an even larger project, to include tourism related retail, a downtown market, a sports bar (like La Cage) and an upscale restaurant. If they did this, the transformation of the Avenir Centre precinct would be complete.

The thing about these large property development companies like Crombie and Aquilini is that they have projects and opportunities in other much larger markets. Sitting on 1222 Main Street and the Crowne Plaza block isn't a problem for them, so there's no urgency on their part to develop these properties.

It's frustrating because these are two very important parcels of land upon which the owners are more than capable of producing prominent developments.

[MonctonRad]

Originally Posted by MonctonRad

The office market is in the toilet and won't recover for a long time (if ever). If Crombie intends to renovate 1222 Main for pre-leased office space, then the building may remain empty for another couple of decades.

Well, the commercial office market might not be as deep down the shitter as I thought!

From Huddle:

Office markets in much of Atlantic Canada appear to be on the road to recovery, according to Turner Drake & Partners.
The Halifax-based real estate counsellors collected data for hundreds of buildings in the region’s six major cities.

Alexandra Baird Allen, manager of the economic intelligence unit, said they saw improvements almost all across the board between June 2020 and June 2021.

“We saw increases in demand in Halifax, Moncton, Fredericton, and Charlottetown, and some decline in demand in Saint John, New Brunswick, as well as St. John’s, Newfoundland,” Baird Allen said in an interview.

Demand increase by 11.9 per cent in Halifax, 6.7 per cent in Moncton, 3.0 per cent in Fredericton, and 2.9 per cent in Charlottetown, while it fell by 2.6 per cent in St. John’s and 6.7 per cent in Saint John.

Baird Allen said while the general consensus is that workers will return to offices, she cautioned that the full impact of the pandemic might not be known for a while as leases are typically for five years.

[L'homard]

Originally Posted by MonctonRad

Well, the commercial office market might not be as deep down the shitter as I thought!

From Huddle:

This is very interesting. This past year or so had the potential to revolutionize the meaning of work, for bad or for good.
If folks return to putting on a white shirt and tie and driving their half=tons to their downtown cubicle, it is my opinion that an opportunity has been missed.
On the other hand, I seem to be surrounded at my home by people who are "working" from their households and yet seem to be out gardening, running errands, chatting on facebook, Facetiming their buddies and doing anything BUT their actual jobs.
I was watching to see how this all might shake out.
I suspect we will never know what might have been possible thanks to humankind's penchant for finding any means possible to avoid work, even if it involves more work than simply doing the G.D. job at hand.

[jonny golden]

There was a survey a while back that said most companies will go with a hybrid model where employees will be splitting their time between home and office. Overall, I can't see the commercial office space market being like it was pre covid.

We might see developers do more mixed use projects that have a limited amount of commercial, and residential units on the upper floors. It's the residential market that's hot right now. Developers are having a hard time keeping up with demand, with many buildings being fully leased even before they are completed.

I wouldn't be surprised if the Junction developers go with more residential than they originally intended to.

[BlackYear]

Company I work for is considering the hybrid option for now with a current slow movement of employees returning back to the office. First in line are employees who want to be in office. I assume those are the ones who are not 100% equipped with home office option and just want to be back with the people.

There was another survey I read a few months ago, it mentioned a big company (Apple or Google) who saw a decline in productivity being at home, and they wanted the majority of employees back in office.

Either way, I see this as nothing more than a trend. Eventually companies will see the bottom lines go down and studies will show that having most employees back in office is the better option. This could all easily change every 5 years. Then until the next pandemic hits, we will all have the back-up option to quickly go back home to isolate and work.

[MonctonRad]

Interior fit-up has now started for the new Freshii location in Tannery Place South.


photo from Avante Garde Construction's FB page.

[jonny golden]

I wonder how Freshii is going to do at Tannery Place compared to downtown? One thing for sure, is that there's going to be a lot more people in the area over time. Just look at all the new apartment buildings under construction within walking distance of The Junction. And there's more to come!

[L'homard]

My guess is, if they can't survive on walk up business being next door to city hall and surrounded by office workers, they don't have a hope in hell at Tannery.
I sincerely hope I'm wrong.

[jonny golden]

Originally Posted by L'homard

My guess is, if they can't survive on walk up business being next door to city hall and surrounded by office workers, they don't have a hope in hell at Tannery.
I sincerely hope I'm wrong.

One thing for sure is that they'll only get one chance to make a first impression. They have to come in with reasonable prices, a great product and excellent service. I went twice on Main Street. First time was OK, second time not good, so I never went back.