REGINA — The downtown Regina real estate market is showing signs of gradual improvement, according to a local real estate agent.
Josh Chung, a commercial real estate agent with REMAX, said building vacancies and sales have taken a positive turn over the past five years.
“There are a couple of deals that we’ve done. 1853 Hamilton Street, the Lancaster building, was sold last year. We’ve got one right now on MacIntyre Street. We’ve got 1854 MacIntyre Street, which was sold to the Saskatchewan Realtors Association. So products are selling, and office space is slowly leasing up.”
As Chung notes, several professions prefer to have a downtown presence.
“There are still businesses that prefer to be downtown, especially in the financial sector and in many professional services.”
Downtown buildings can often sell for 10 to 15 per cent below their original asking price, depending on demand.
However, Chung said buyers need to recognize that these investments may require additional capital in the future.
“These are very important investors because if you're buying a building and you're getting a good deal, but you have to put a bunch of capital improvements into it within the next five years, now all of a sudden the good investment doesn't look so good anymore.”
Since many buildings downtown are used for office and business space, Chung said parking is critical for investors.
“We’re so used to parking that it has become part of the norm.”
In a recent interview with SaskToday, the City of Regina said 66 per cent of standalone surface parking lots downtown are designated for specific uses, while reduced parking availability for new developments remains a concern for businesses.
Looking ahead, Chung said the full reopening of 11th Avenue later this year will have a positive effect on demand.
“It's going to have a really good positive effect, especially when you're talking about professional services, banking, lawyers. A lot of these businesses like to have a good street appeal.”
But ensuring the market continues to improve also means helping incentivize businesses and creating a safer area.
“Tax breaks and that sort of thing would really help, too. Maybe a little better security, with more patrols downtown. I think that goes a long way toward making people feel safe coming downtown and encouraging business owners to stay downtown."
