In this blog, we spoke with Donald Tabor of CBRE to discuss how he got started in commercial real estate, and what he predicts the next ten years looks like for the Nova Scotia commercial real estate market. We hope you enjoy.
Q1: Donald, thanks for taking the time. Please introduce yourself to give our readers a bit of background on who you are and what you do.
A: Absolutely. Thanks for having me. My name is Donald Tabor and I am a commercial real estate agent with CBRE in Halifax. My core business is commercial leasing with a focus on Landlord representation of office and/or retail properties. I have experience representing large scale developers and landlords across asset types, including GWL Realty Advisors, The Armour Group, Westwood Developments, WM Fares Group, Mosaik Properties, Grafton Developments Inc. and Manga Hotels. Born and raised in Dartmouth, I am excited to be in a line of work that allows me to shape the communities that I’ve grown to know so well over the years. Halifax is on the rise and I’m excited to see how far this City can go.
Q2: Why did you decide to pursue a career in real estate? Did anything influence the focus in commercial?
A: I stumbled across this industry after talking with some friends from high school. It wasn’t really on my radar initially. I was considering residential real estate as the market was picking up and I saw other young professionals succeeding in that space. But I ultimately felt that the commercial route was a better fit – I wanted to work with businesses, investors and developers to achieve their real estate goals.
When entering the work force, I knew that I wanted to be in a sales-based environment that pushed me entrepreneurially and this career path does just that.
Another appealing aspect of working in commercial real estate, and one I am extremely grateful for, is the opportunity to work on the strategy and leasing of local developments and bring buildings to life with interesting retail, office and commercial tenants.
A great example of this is Richmond Yards in Halifax’s North End. Our team is managing the commercial leasing here and the outlook for this site is to create a community that people can “Live, Work and Create”. There are large multi-residential, office and retail components to this development so our efforts will be geared on leasing for the community and providing great amenities for the residents and the local area. Look out for this in 2022 – 2024!
Q3: What are you seeing in the commercial real estate market today? How does Nova Scotia compare to other provinces?
A: Every market is different and they all have their own unique quirks. Nova Scotia on the National scale is still fairly small, and the bulk of the commercial activity does happen within the HRM. This plays into the trend the Province is seeing where more people are moving to the City instead of propping up smaller, more rural areas .
I think we will continue to see a large push for more multi-residential development. There is a lot of focus in the West Bedford and Peninsula submarkets in terms of larger scale development and I think that will hold for some time. The demographics in those areas are strong and appear to be able to afford the cost of new construction. Also keep an eye open for conversions of dated office buildings into multi-residential product. This will help to eliminate challenged office product from the high-vacancy office market, force office tenants to explore the market all while creating more living options by bringing new residential supply to a tight rental market. As we see more multi-residential and neighborhood development, I do think that we will see an uptick in leasing activity across all asset types. So long as Halifax’s cost of living stays reasonable compared to other larger markets, we will continue to see growth, new out of province tenants will find their home here and existing business will continue to grow and expand.
On the office side I think we will continue to see Landlords who can provide easy solutions for small businesses succeed – coworking and flexible office solutions are seeing success in this market as well, a trend I don’t think will slow down. The general market demand for space is typically smaller footprint users who want flexible terms and turn-key solutions for their growing business. Playing into this will create more turnover in tenancies but will also allow businesses to grow and tap into more of their potential if they aren’t tied to a long-term lease.
Retail is evolving – street front retail is challenging in most of the City but I do see the food and beverage scene growing and we will see more international flavors come to market given the immigration the City is seeing.
The focus for more traditional retailers and national brands will continue to look to grocery, pharmacy and gym anchored sites, Dartmouth Crossing and the Halifax Shopping Centre. I do not anticipate Mic Mac Mall will last given the popularity of Dartmouth Crossing and online shopping. I anticipate a multi-residential play is a better use of this site and would not be surprised if in the next 10-year window there is a full conversion here.
Q4: What do you see commercial real estate in Halifax looking like in the next 10 years?
A: I think we will continue to see more multi-residential development. Largely fueled by those who are downsizing, or younger people looking for flexible living accommodations. The world is a small place and I know that younger people value their ability to be mobile and take opportunities as they present themselves.
I anticipate more out of market commercial tenants will look to Halifax for expansion given its cost effectiveness both from a residential standpoint as well as from a commercial leasing perspective. Halifax’s location on the globe is excellent for running international business out of so look for out of market tenants to explore this and leverage the highly educated local population for staffing.
Q5: To build on the last question - are there any markets in Nova Scotia you see surprising us in the next 5-10?
A: I don’t anticipate any markets outside of the HRM surprising us with considerable growth. The City has the ports, the airport, access to major highways, dense population areas, universities, major hospitals, etc.
If I am to pick submarkets of the HRM that will see the most growth – I would hedge my bets on Halifax’s North End and the Fairview area.
I’m a Dartmouth guy so I’d love to see more development on that side. There are some proposed developments in Downtown Dartmouth up to the North End which would bring more density to the area and stimulate commercial activity. Dartmouth has a rep of being “far from Halifax” and people don’t want to “cross over” the bridge. I think the perception of this will change with development and hopefully the market will see that living in Dartmouth is a good option for a number of reasons – you can access all amenities you need and is only a short commute to Downtown or to other submarkets.
Thanks so much for joining me, Donald. We cannot wait to see what the future holds for commercial real estate in Nova Scotia.
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