City of Regina Assessment Branch

Non-Residential Models

Scott Miller, Manager of ResearchCharla Weber, Senior Assessor

Non-Residential Models

• Office Buildings (Class A, B+ & B)• Warehouses• Global Retail• Enclosed Shopping Centres• Multifamily (High-rise, Low-rise & Townhouse)

• Hotels/Motels

5 Components in the modeling process:

• Rent analysis – typical rent as of the base date.

• Vacancy analysis – typical vacancy as of the base date.

• Shortfall calculation – cost to landlord for carrying vacant space.

• Time adjustment analysis (sales).

• Cap rate / GIM analysis.

Offices (Class A, B+ and B)

Rent ModelVariable Description Coefficient(Constant) Rentable space in a Class B office building $13.01CLASS_A Rentable space in a Class A office building $3.56FLR_BSMT Rentable space in the basement level -$5.93UPPER_NOELEV Rentable space on upper floor areas of buildings not serviced with an elevator -$7.01LT1950 Buildings with an effective year built of 1949 or earlier -$3.72

Vacancy

Office Class Rent_Type NRental Area

(sqft) Vacancy %OWNER 25 64,516TENANT 516 3,443,351VACANT 53 97,223 2.70% 594 3,605,090

OVERALL

Shortfall = (op cost/net rent ratio) X (dark space ratio) X (typical vacancy)

0.948 X 0.88 X .0270 = 0.0225 (2.25%)

Offices (Class A, B+ and B)

2013 Parking Rent Model:

STL - refers to Parking Stall that is covered (typically parkade or underneath a building structure)SPA - refers to a Surface Parking Space (Stall)

Variable Description Coefficient Eff Rate/month/stall(Constant) Parking "Stall" in the downtown area (Study areas 4510 & 4520) $135

$135PARKSTL_OTHER Parking "Stall" outside the downtown area -$43

$92PARKSPA_DT Parking "Space" in the downtown area (Study areas 4510 & 4520) -$28

$106PARKSPA_4540 Parking "Space" in the transitional area (Study areas 4540) -$50

$85PARKSPA_OTHER Parking "Space" outside the downtown & transitional areas -$73

$62

Offices (Class A, B+ and B)

Cap Rate # of sales Stratification Median Cap Rate

6 Overall 8.66%

ASR Results#of sales Median ASR COD

6 1.00 0.271

Warehouses

Rent Model

Variables Description Coeff/Adj ($/sqft)(Constant) Warehouse space $6.28

WH_GE100K Warehouse lease space >= 100,000 sqft -$2.52

AGE_GE1990 Bldgs built in 1990 or newer $1.25

Vacancy

Rent_Type N Rental Area (sqft) Vacancy %OWNER 26 164,763TENANT 240 2,960,877VACANT 12 13,624 0.43%Total 278 3,139,264

Shortfall = 0.33 X 0.88 X 0.0043 = .0012 (0.12%)

Warehouse Time Adjustment (SAR Analysis)

Warehouse Time Adjustment (SAR Analysis)

Time Adjustment = 5.8% per month for months 1 to 10.No adjustment for months 11 to 36

Warehouses

ASR Results# of sales Stratification Median ASR COD

4 Whse >= 25,000 sqft 1.002 0.08816 Year built >= 1970 and < 25,000 sqft 0.999 0.1153 Pre 1970 built 0.998 0.00623 Overall 0.999 0.100

Cap Rate # of sales Stratification Median Cap Rate

4 Whse >= 25,000 sqft 9.92%16 Year built >= 1970 and < 25,000 sqft 6.79%3 Pre 1970 built 10.18%

Global RetailRent Model

Variables Description Coeff/Adj ($/sqft)(Constant) Retail space $13.36BANK Bank space $5.39MARKET Market (Grocery Store) space -$3.22REST Restaurant space $0.70RESTFAST Fast Food Restaurant space $7.65WHSE Warehouse space -$1.68STORAGE Storage space -$5.20THEATRE Theatre space -$7.17BSMT Leaseable Basement space -$2.28UPPER_ALL Above main floor space (with or without an elevator) -$1.99STUDY_4410_N Study area 4410 (North Albert Street) -$1.92STUDY_4420 Study area 4420 -$2.65STUDY_4460_70 Study areas 4460 and 4470 -$3.94STUDY_4510_20 Study areas 4510 and 4520 (Downtown) -$2.53STUDY_4450_4540 Study areas 4450 (South Regina) and 4540 (Tar area) -$0.63STUDY_5201 Study area 5201 -$6.68STUDY_5203 Study area 5203 -$5.96STUDY_5204_05 Study areas 5204 and 5205 -$5.64STUDY_5206_07 Study areas 5206 and 5207 -$4.71GE1990LT2K_4410 Bldgs built in the 1990s in Study area 4410 & 4430 $3.17GE1990LT2K_OTHR Bldgs built in the 1990s in Study areas other than 4410 & 4430 $1.89GE2000_4410 Bldgs built newer than 1999 in Study area 4410 & 4430 $6.33GE2000_OTHR Bldgs built newer than 1999 in Study areas other than 4410 & 4430 $4.77YRBLT_1980s Bldgs built in the 1980s $0.73AREA_GT55K Retail lease areas > 55,000 sqft -$10.59

Global RetailRent Model

Residential Apts/SuitesVariables Description Coeff/Adj ($/month)(Constant) One Bedroom Apartment/Suite $517TWOBDRM Two Bedroom Apartment/Suite $122THREEBDRM Three Bedroom Apartment/Suite $226FOURBDRM Four Bedroom Apartment/Suite $558FIVEBDRM Five Bedroom Apartment/Suite $896MAIN Study Areas 4410, 4420 and 4430 -$80

Vacancy (commercial component):

Rent_Type N Rental Area (sqft) VacancyOWNER 166 556,601TENANT 2,044 7,147,868VACANT 149 351,938 4.37%Total 2,359 8,056,407

Vacancy (residential component):Rent_Type N Vacancy

OWNER 9TENANT 115VACANT 13 9.49%Total 137

Shortfall (commercial component) = 0.51 X 0.88 X 0.0437 = 0.0196 (1.96%)

Global Retail Time Adjustment (SAR Analysis)

Global Retail Time Adjustment (SAR Analysis)

Time Adjustment = 4.8% per month for months 1 to 10.No adjustment for months 11 to 36

Global Retail

ASR Results# of sales Stratification Median ASR COD

58 Single-Sty built 1970 or newer (includes Multi-Sty post 1999) 0.999 0.20534 Single-Sty built pre 1970 1.001 0.20415 Multi-Sty built pre 1970 1.000 0.1938 Multi-Sty built from 1970 to 1999 1.000 0.1898 Indlmfg built post 1999 1.000 0.140

123 1.000 0.198

Cap Rate # of sales Stratification Median Cap Rate

58 Single-Sty built 1970 or newer (includes Multi-Sty post 1999) 7.85%34 Single-Sty built pre 1970 9.50%15 Muli-Sty built pre 1970 11.32%8 Multi-Sty built from 1970 to 1999 10.44%8 Indlmfg built post 1999 5.98%

Enclosed Shopping CentresRent Model

CW - refers to CornWall centreSL - refers to SouthLand mallNG - refers to NorthGate mallVS - refers to Victoria Square mallGM - refers to Golden Mile mall

Variable Description Coefficient Eff Rate/sqft(Constant) CRU Space less than 1700 sqft (at CW or SL) $39.80

$39.80CRULT17_NG_VS_GM CRU Space less than 1700 sqft (at NG, VS or GM) -$14.83

$24.97CRU17TO65_CW_SL CRU Space from 1700 to 6500 sqft (at CW or SL) -$12.09

$27.71CRU17TO65_NG_VS_GM CRU Space from 1700 to 6500 sqft (at NG, VS or GM) -$20.35

$19.45CRU_GE6500 CRU Space greater than or equal to 6500 sqft (City-wide) -$24.87

$14.93NONCRU_CW_SL NonCRU Space (at CW or SL) excluding basement space -$23.47

$16.33NONCRU_NG_VS_GM NonCRU Space (at NG, VS or GM) excluding basement space -$27.84

$11.96NONCRU_BSMT NonCRU Space located in the basement (City-wide) -$32.95

$6.85REST Interior Restaurant Space (City-wide) -$18.72

$21.08FOODCRT_CW_SL Food Court Space (at CW or SL) $87.29

$127.09FOODCRT_NG_VS_GM Food Court Space (at NG, VS or GM) $28.80

$68.60KIOSK_CW_SL Kiosk Space (at CW or SL) $167.31

$207.11KIOSK_NG_VS_GM Kiosk Space (at NG, VS or GM) $100.19

$140.00ANCHOR Anchor Space (City-wide) -$33.79

$6.01EXTERIOR Exterior Mall Space (no access from mall interior) (City-wide) -$18.35

$21.45STORAGE Designated Storage Space (City-wide) -$23.96

$15.84

Enclosed Shopping Centres2013 Enclosed Shopping Centre Vacancy Analysis:

SPACE_GROUP Rent_Type NSum of

Area (sqft) VacancyTENANT 9 862074Total 9 862074 0.00%TENANT 238 615069VACANT 33 54628Total 271 669697 8.16%TENANT 5 58460Total 5 58460 0.00%TENANT 36 12723VACANT 3 944Total 39 13667 6.91%TENANT 25 3587VACANT 2 354Total 27 3941 8.98%OWNER 4 5108TENANT 24 183304VACANT 4 7390Total 32 195802 3.77%TENANT 38 5196VACANT 14 3688Total 52 8884 41.51%OWNER 4 5108

TENANT 375 1740413VACANT 56 67004Total 435 1812525 3.70%

ANCHOR

CRU

EXTERIOR

FOODCRT

KIOSK

NONCRU

STORAGE

Total (overall)

Shortfall = 0.50 X 0.88 X .037 = 0.0163 (1.63%)

Initially we were going to use a sales window of Jan 1, 2007 to Dec 31, 2010 but decided to eliminate 2007 sales due to extreme time adjustments required for the

earlier sales.

1. Highrise2. Lowrise3. Townhouse

Multifamily Models

High-rise

Rent ModelVariable Description Coefficient($/month)(Constant) One Bedroom Unit/with balcony/located on Floors LE 10th

Floor/In Study Area 2640- Downtown/in a building with an effective year built of 1970 or greater $821

BACH Bachelor Unit -$216TWOBDRM_PLUS 2+ Bedroom Unit $140NOBALCONY Unit With No Balcony -$133FLR_GE10 Unit Located on Floor Greater then or Equal to 10th Floor $79AGE_LE69S Unit located in a building with an effective year built of 1969 or

earlier -$11STUDY2620 Unit Located in Study Area 2620 - North Regina -$122STUDY2630/2650 Unit Located in Study Areas 2630/2650 - Core and East of

Downtown -$84STUDY2670/2680 Unit Located in Study Areas 2670/2680 - South and South East

$133

Low-rise

Rent ModelVariable Description Coefficient($/month)(Constant) One Bedroom Apartment Style Unit Located on the Main

Floor/in Study Area 2670 - South Regina/in a building with an effective year built in the '60's $741

BACH Bachelor Unit -$124TWOBDRM Two Bedroom Unit $98THREEPL 3+ Bedroom Unit $229GARD_1BD Garden Style One Bedroom Unit $89GARD_2BD Garden Style Two Bedroom Plus Unit $199GARDLOFT Garden Style Loft Unit $129BSMT_BSMTSEMI Unit Located in the Basement or Semi Basement -$25TOPFLR Unit Located on the Top Floor (Apartment Units only) $8LUC1560 Unit Located in a Semi Detached Building -$80AGE_PRE50S Unit Located in a building with an effective year built 1949

and earlier -$48AGE_50S Unit Located in a building with an effective year built in the

'50s -$21POST60S Unit Located in a building with an effective year built 1960

and later $108STUDY2620 Unit Located in Study Area 2620 - North Regina -$66STUDY2630 Unit Located in Study Area 2630 - Core -$148STUDY2640 Unit Located in Study Area 2640 - Transitional/Cathedral

-$87STUDY2650 Unit Located in Study Area 2650 - East of Downtown -$58STUDY2680 Unit Located in Study Area 2680 - South East -$121

Townhouse

Rent ModelVariable Description Coefficient($/month)(Constant) Three Bedroom Unit/ Above Average

Condition/Study Area 2620 - North Regina $1,213ONEBDRM One Bedroom Unit -$501TWOBDRM Two Bedroom Unit -$118FOURBDRM Four Bedroom Unit $277STUDY2640 Unit Located in Study Area 2640 -

Transitional/Cathedral -$29STUDY2630/2650

Unit Located in Study Areas 2630/2650 - Core and East of Downtown -$96

STUDY2670/2680

Unit Located in Study Areas 2670/2680 - South and South East $26

CONDAVG Units in a Building of Average Condition -$162

Multifamily Time Adjustment Analysis

Multifamily Time Adjustment Analysis

Time Adjustment = 2.49% per month for months 1 to 8.No adjustment for months 9 to 36

Multifamily Effective Gross Income Multiplier Analysis

Description Coefficients(Constant) Buildings located in Study Area 2670 - South Regina/effective

Year built in the '50s/Quality GE49.006

AGE_PRE50S Buildings with an effective year built of 1949 and earlier -1.895

SA2630 Buildings in Study Area 2630 - Core -2.835

SA2650 Buildings in Study Area 2630 - East of DowntownQUALLE3 Buildings less then or equal to Quality 3SA2640 Buildings in Study Area 2640 - Transitional and Cathedral

AreasSA2620 Buildings in Study Area 2620 - North ReginaAGE_GE70S Buildings with an effictive year built 1970 and greaterAGE_60S Buildings with an effective year in the '60s

Excluded Variables

# of Sales Stratification Median ASR COD81 Overall .995 .168

ASR Results

Questions?