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REITs Not For Everyone
Canadian Tire and Loblaws Cos jumped into the publicly traded REIT sector with both feet in 2013. CBRE chairman John O’Bryan tells us the thing you have to keep in mind is that CT and Loblaws have large-sized SF portfolios, great covenants, and long-term leases. (The 36-24-36 of real estate.)
The quantum of dollars was very large and they were able to “control a good chunk of the real estate through the REIT,” John says. It’s more difficult for smaller retailers or retailers with lots of locations but smaller units to make the numbers work. This is not a trend you will see people flocking into, because it’s a “high-level game with three or four hurdles you have to cross to get there—although lots of people have looked at it,” he says.
