Marcus & Millichap Expands into Canada, Opens 3 Offices
- Apr 28, 2014
Marcus & Millichap has opened not its first office in Canada, but its first three offices there, in Toronto, Vancouver and Calgary, the firm announced late last week.
Senior vice president Gary Lucas will manage the Calgary office of Marcus & Millichap Real Estate Investment Services Canada Inc., Brokerage, but will remain based in the San Francisco area, Lucas told Commercial Property Executive.
Regional manager Daniel Holmes will head the Toronto office, and regional manager Chris Anderson will head the office in Vancouver, with 14 and six brokers, respectively, Lucas added.
Marcus & Millichap hopes to have one or two further offices in Canada by next year, perhaps in Montreal, Ottawa or Edmonton, with a total of about 40 brokers in Canada by then, Lucas told CPE.
The expansion into Canada is “just a logical step” for the company, Lucas said, following its public offering late last year and given that it already covers the United States pretty comprehensively. “The focus is to be for Canadians, by Canadians,” he added.
Lucas also noted that Canadian investments in U.S. commercial real estate totaled about $11.2 billion in 2013, in transactions ranging from large portfolio purchases down to much more modest purchases by smaller investors.
Lucas also pointed out that on a day-to-day basis, Marcus & Millichap has about $6 billion in exclusive CRE listings.
Although Toronto shows cap rates for prime properties that are comparable to those in New York, London and other global cities, Canadian cap rates nationally average about 75 basis points lower than in the United States, and this difference tends to lure Canadian investors toward acquiring U.S. properties, according to the 2013 Global Capital Trends report from Real Capital Analytics.
Lucas pegs the typical difference in cap rates rather higher, at easily 100 or 200 basis points, driven by a dearth of available inventory in Canada compared with the United States.
The Toronto office of Marcus & Millichap is at 20 Queen St. W., Suite 2300; the phone number is 416-585-4646. The Calgary office is at 5920 Macleod Trail SW, Suite 201; the phone number is 587-349-1302. The Vancouver office is at 601 W. Broadway, Suite 400; the phone number is 604-675-5200.