Return to higher properly values.

Sense that Thunder Bay market has bottomed out encouraging

The make-up of the Thunder Bay commercial market is as diverse as the geographical makeup of the city itself. Effectively the north core and south core, formerly the town centers of Port Arthur and Fort William, bookend the intercity area which is now the hub of retail activity for the City of Thunder Bay.

The Intercity Shopping Centre, the major big box outlets such as Wal-Mart and the soon-to-be developed Camrose property are all located in this area.

Where vacancy rates have increased over the past few years in the core areas, intercity has shown positive growth. Lease rates and property values are substantially higher in intercity. However, there is a trend to fill in the voids left by the earlier exodus in the cores at rental rates that are lower but still sustainable by the property owners. The north core has experienced a quicker rebound with the casino development, Magnus Theatre relocation and expansion, as well as anticipation of commercial development on the lakefront at the marina. It is expected that in the near future this area will be a centre of high demand comprised of boutiques, entertainment and food establishments, as well as a solid base of office space.

The south core is still quite soft in vacancy and values, but the sense by many that the market has bottomed out is encouraging entrepreneurs to take advantage of some excellent opportunities that may pay off in the long run. An example of this being a for mer movie theatre transformed into a medieval dinner theatre with audience participation.

In the industrial sector there is a great deal of activity in construction, including the new hospital and upcoming university expansion, Canadian Tire stores, possible Bowater saw mill as well as other smaller projects that should boost the need for light industrial space that has been lacking in recent years.

Pocket areas of commercial and industrial interest include the area surrounding the new hospital site which would include the city's Innova Business Park as well as the main commercial arteries.

A number of investment properties were sold in the past few years at very good prices for the buyers, in most cases. This can be attributed to a number of default properties cleared off the books by some of the financial institutions. It appears a return to a bit higher values is the trend since the multi-unit residential vacancy rates are lower.

In summary, Thunder Bay is fairly healthy. The general attitude is, we've been through some pretty rough times and managed to keep it together. Considering the lack of a large market base due to our location, we do well at keeping this community, its leaders and businesses on their toes always looking for new opportunities to grow and develop a stronger more vibrant city.

Ralph St. Jarre is an associate broker with Real TV Realty Inc. in Thunder Bay.