Not all offers that are written are accepted. If that’s the case, usually the buyer or the seller has unrealistic expectations of the market or they get lost in the details.
This is true no matter the scale of the property. For example, the City of Saskatoon has had the former police station on 4th Ave and 23rd St for sale for 20 months now. Initially the City placed a minimum bid requirement on the sale at $15.6 million. When no offers materialized, the requirement was removed in December.
Finally, after 20 months on the market, the City finally received an offer of $11 million. It would house a national research institute, the Lung Health Institute of Canada, along with a mix of retail and commercial tenants. Meridian Developments placed the bid for the police station and the adjacent parking lot.
Downtown Saskatoon office space has recently seen vacancy rates above 15% and the market has shifted. Sellers and landlords need to be realistic about their prices as it’s no longer a sellers market. After all, a property is only worth what someone is willing to pay for it.
The developer believes that the lung institute’s public service and the potential to attract many national researchers should also be taken into consideration.
While the goal is to get the best deal for the taxpayers, the city is maintaining that patience is key in this situation. They believe the market will rebound and since it’s such a substantial site, patience is key.
I don’t know if they made the right decision, what are your thoughts? Typically, the first offer is usually the best in my experience.
Saskatoon real estate agent
Century 21 Fusion