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Full Narrative Appraisal Commercial Demand Analysis
The Parks of Harvest Hills Calgary, Alberta February 2016
PREPARED BY:
Stephanie Bird
Senior Associate, Calgary
Valuation & Advisory Services
PREPARED FOR:
Peter Schryvers
Development Manager
QuantumPlace Developments Ltd,
900 Royal Bank Building 335 - 8th Avenue SW
Calgary, Alberta
www.colliers.com
MAIN 403-265-9180
FAX 403-237-7567
Our File: CGY-15-827
February 1, 2016
QuantumPlace Developments Ltd.
Suite 203, 1026 – 16 Avenue NW
Calgary, Alberta T2M 0K6
Attention: Peter Schryvers, MEDes, RPP, MCIP
Development Manager
Dear Mr. Schryvers;
Re: Commercial Demand Analysis
The Parks at Harvest Hills, Calgary, Alberta
In accordance with your request, we have analyzed the demand for commercial space within the
community of Harvest Hills. Based on the analysis contained herein, it is our opinion and
recommendation that no commercial development should be included in the planning of the subject site.
Should you have any questions, we would be pleased to discuss further.
Yours very truly,
COLLIERS INTERNATIONAL REALTY ADVISORS INC.
Stephanie Bird, B.Mgt, AACI, P. App
Senior Associate, Calgary
Table of Contents
Introduction
Approach
Harvest Hills Community Overview
Existing Commercial Developments
Commercial Development within Trade Area
Population Projections
Retail and Service Demand
Conclusions
Appendices
Appendix A Contingent and Limiting Conditions Appendix B Definitions Appendix C Certification
Introduction Cedarglen homes purchased the nine hole Harvest Hills Golf Course for the purpose of residential
redevelopment. The Harvest Hills Golf Course is located in the northeast portion of the community of
Harvest Hills. Harvest Hills is a Northeast community, south of Country Hills Boulevard, West of the Rail
Line, East of Harvest Hills Boulevard and North of 96 Avenue NE. The map below, as per the
QuantumPlace website, highlights the golf course amidst the existing development within the community.
Cedarglen Homes was engaged by QuantumPlace Developments to act as development managers for
the redevelopment of the site. The overall site totals 64.88 acres and is proposed to be developed with a
mix of single family and multi-family development. The site features R-1, R-2, M-1 and M-G land use
bylaws, all of which allow and support a mix of single family and multi-family development. The following
map is the outline plan for the proposed development.
As per discussions with QuantumPlace, the City of Calgary has requested that the site located in the
northwest corner of the above plan be reviewd for its potential as a commercial site, rather than for
residential development. The purpose of this report is to determine the feasibility of commercial
development within the proposed development.
Approach The following are the steps which will be used in our analysis:
1. Review of the Harvest Hills Community 2. Review of the type and location of existing and potential commercial developments in Harvest
Hills 3. Review of the commercial developments and existing commercial space within the three
kilometer and five kilometer trade area from Harvest Hills 4. Current and estimated population projections for Harvest Hills and the three and five kilometer
trade areas 5. Review retail and service demand in the trade area; detail floorspace demand for 2016, with
projections for 2018, 2020, 2022 for the three and five kilometer trade area.
Harvest Hills Community Overview
The property is situated in the good quality residential district known as Harvest Hills. Harvest Hills is
located approximately 10 kilometre northeast of Calgary’s central business district.
District Boundaries
North Country Hills Boulevard NE
South 96th Avenue NE
East Rail Line
West Harvest Hills Boulevard NE
Adjacent Districts
North Country Hills Village & Coventry Hills
South Aurora Business Park
East Stoney One Industrial District
West Country Hills
Major Arterials & Access
Access General access to the neighbourhood is considered to be good .
Arterials Deerfoot Trail NE
Country Hills Boulevard NE
96th Avenue NE
Commercial Development
Harvest Hills is currently serviced by three commercial centres. The first is a convenience store paired
with a gas station which is located in the southwest corner of the community. The second is a two storey
office development located adjacent to the convenience store/gas bar. The third is a strip mall featuring
local tenants located in the northeast section of the community. This type of commercial development is
considered to be reasonable and typical for neighborhoods of this type and size, especially given the
strong presence of national retailers in developments surrounding the community of Harvest Hills. In
addition to the commercial development located within the community, there is a community shopping
centre located immediately south of Harvest Hills, and two additional community shopping centres located
immediately north of Harvest Hills.
Existing Commercial Developments Currently within the community of Harvest Hills there are three existing developments
Site 1: Name: Harvest Hills Professional Building
Location: 178 – 96 Avenue NE
Comments: Two storey professional building
Site 2: Name: Petro Canada / 7/11
Location: 150 – 96 Avenue NE
Comments: Pad site featuring a national chain convenience store and gas station
Site 1: Name: Harvest Hills Plaza
Location: 33 Harvest Hills Drive NE
Comments: 5 units strip centre featuring local tenants.
Commercial Development within Trade
Area We have applied a three kilometer and five kilometer trade area to the subject property to determine
existing and proposed retail developments.
Within a trade area of three kilometers of The Parks at Harvest Hills (not including the three commercial
properties noted on the previous page), there are four community shopping centres. A summary of each
property is as follows:
Site 1: Name: Harvest Hills Crossing
Size: 132,203 SF
Location: 9650 Harvest Hills Boulevard NE
Anchors: T&T Supermarket, Rexall, HSBC Bank, Tim Hortons
Comments: Grocery anchored retail centre located immediately south of Harvest Hills
Site 2: Name: Coventry Hills Centre
Size: 275,000 SF
Location: 130 Country Village Road NE
Anchors: Superstore, RBC, Petland, Michaels
Comments: Grocery anchored retail centre featuring big box retailers
Site 3: Name: Country Hills Town Centre
Size: 164,212 SF
Location: 450 Country Hills Boulevard NE
Anchors: Sobey’s, Esso, TD Canada Trust
Comments: Grocery anchored retail centre located immediately north of Harvest Hills
Site 4: Name: Northpointe Town Centre
Size: 199,502 SF
Location: 388 Country Hills Boulevard NE
Anchors: Landmark Cinema’s, Canadian Tire, Home Depot, Shell
Comments: Retail centre featuring large format tenants as well as restaurants
In addition to the four existing properties, there is one additional development under construction, and
one proposed development located within the three kilometer trade area. A summary of the project is as
follows:
Site 5: Name: The District
Size: 93,225 SF
Location: 14th Street and Country Hills Boulevard NE
Anchors: McDonalds, Shell, Kinjo
Comments: Comprehensive development featuring retail, office and industrial
Site 6: Name: Stonegate Plaza
Size: 18,000 SF
Location: Barlow Trail and Country Hills Boulevard NE
Anchors: Tim Horton’s
Comments: Proposed development located east of Deerfoot Trail
The following map illustrates the developments and their locations within the three kilometer trade area
Within a trade area of five kilometers of The Parks at Harvest Hills (not including the previously mentioned
properties), there are eight community shopping centres. A summary of each property is as follows:
Site 7: Name: Hunterhorn Plaza
Size: 150,000 SF
Location: 6132 – 4 Street NE
Anchors: Canadian Tire
Comments: Community retail centre
Site 8: Name: Beddington Village
Size: 21,000 SF
Location: 8282 Centre Street NE
Anchors: Bank of Montreal, Mac’s
Comments: Shadow anchored by Co-Op grocery centre
Site 9: Name: Beddington Co-Op Centre
Size: 149,000 SF
Location: 8220 Centre Street NE
Anchors: Co-Op, RBC, Tim Hortons
Comments: Grocery anchored retail centre
Site 10: Name: Beddington Towne Centre
Size: 176,941 SF
Location: 8120 Beddington Boulevard NW
Anchors: Safeway, London Drugs, TD Canada Trust
Comments: Enclosed mall with exterior access to some tenants
Site 11: Name: Gates of Panorama
Size: 104,780 SF
Location: 1110 Panatella Boulevard NW
Anchors: Save on Foods, Rexall, TD Canada Trust, Tim Hortons
Comments: Grocery anchored retail centre
Site 12: Name: Superstore
Size: TBD
Location: 7020 – 4 Street NW
Anchors: Superstore
Comments: Grocery anchored centre
Site 13: Name: Sandstone Village
Size: approx. 10,000 SF
Location: 44/66 Sandarac Drive NW
Anchors: Esso, Tim Hortons, Dairy Queen
Comments: Strip centre located within the community of Sandstone
Site 14: Name: Hanson Ranch Plaza
Size: 14,936 SF
Location: 11 Hidden Creek Drive NW
Anchors: Esso, Mac’s, Pizza Hut
Comments: Strip Centre located off of Beddington Trail NW
Site 15: Name: Deerfoot City Existing
Size: 725,000 SF
Location: 901 – 64 Avenue NE
Anchors: Wal-Mart, Cabela’s, Cineplex Rec Room
Comments: Redevelopment of enclosed mall into outdoor shopping area
In addition to the four existing properties, there is one additional development under construction, and
four proposed developments located within the five kilometer trade area. A summary of the project is as
follows:
Site 15: Name: Deerfoot City Expansion
Size: 289,287 SF
Location: 901 – 64 Avenue NE
Anchors: Wal-Mart, Cabela’s, Cineplex Rec Room
Comments: Redevelopment of enclosed mall into outdoor shopping area
Site 16: Name: Jacksonport RioCan
Size: 853,231 SF
Location: Metis Trail NE
Anchors: Grocery, Bank
Comments: Proposed regional development
Site 17: Name: Jacksonport Sheppard
Size: 200,000 SF
Location: 36th Street and Country Hills Boulevard NE
Anchors: Tim Hortons, Dairy Queen, Mac’s
Comments: Proposed community development
Site 18: Name: Stonegate Common
Size: 674,686 SF
Location: Metis Trail
Anchors: Wal-Mart, Canadian Tire
Comments: Proposed development located south of Stoney Trail
Site 19: Name: Keystone Common
Size: 800,000 SF
Location: North of Stoney Trail
Anchors: TBD
Comments: Proposed regional development
The following map illustrates the developments and their locations within the three and five kilometer
trade area
Existing and Potential Commercial Space Summary
Existing Retail SpaceProperty Name Size (SF)
Three Kilometre Trade Area
Harvest Hills Crossing 132,203
Coventry Hills Centre 275,000
Country Hills Town Centre 164,212
Northpointe Town Centre 199,502
Total 770,917
Five Kilometre Trade Area
Hunterhorn Plaza 150,000
Beddington Village 21,000
Beddington Co-Op Centre 149,000
Beddington Towne Centre 176,941
Gates of Panorama 104,780
Deerfoot City (Existing) 725,000
Sandstone Village 10,000
Hanson Ranch Plaza 14,936
Total 1,351,657
2,122,574
Proposed Retail SpaceProperty Name Size (SF) Completion Date
Three Kilometre Trade Area
The District 93,225 2016
Stonegate Plaza 18,000 2017
Total 111,225
Five Kilometre Trade Area
Deerfoot City Expansion 289,287 2018 - 2021
Jacksonport Riocan 853,231 2025
Jacksonport Sheppard 200,000 2018
Stonegate Common 674,686 2019 - 2021
Keystone Common 800,000 2021
Total 2,817,204
2,928,429
Population Projections The following table highlights the historical and projected population trends for the community of Harvest
Hills, as well as the two different trade areas.
2010 2015 2018 2020 2025
Harvest Hills 6,661 6,911 6,996 7,040 7,149
3 KM Trade Area 36,467 44,563 47,232 48,931 52,964
5 KM Trade Area 87,681 103,915 108,969 112,103 119,374
Population Projections
Retail and Service Demand Retail and service demand in a trade area is determined mainly by the number of residents and their
incomes and spending patterns. Demand for retail goods and services also depend on employee and
visitor spending, to a lesser degree.
The City of Calgary reported the City population to be 1,230,915 as of mid-2015, while total retail
inventory was 28,168,962 square foot, resulting in an average of 22.88 square feet per capita of retail
space for the City. Typical retail and service space is found in two types of locations.
1. Local/Community serving commercial developments are typically located along neighbourhood
commercial streets and are either small retail plazas or community orientated shopping malls.
Common tenants include supermarkets, pharmacies, financial institutions, restaurants and cafes,
drycleaners, convenience stores and hair salons.
With the exception of Jacksonport Riocan, Stonegate Common and Keystone Common, all of the
retail properties (existing or proposed) within the three and five kilometer trade area of The Parks
at Harvest Hills would fall within this category.
2. Region serving retail commercial developments are typically located in Regional Town Centres, in
concentrations of large format retail stores on major arterial roads (eg. Deerfoot Trail, Stoney
Trail). Tenants include building supply stores, mass merchandisers, pet supplies, electronics and
large supermarkets.
Jacksonport Riocan, Stonegate Common and Keystone Common all fall within this type of
category.
The Harvest Hills trade area is a geographically well-defined sub-region that is distinct and large enough
to support a wide array of sub regional, community and convenience retail and service uses. In order to
determine future inventory we have applied the proposed completion dates for each of the previously
discussed developments, the table below summarizes the proposed inventories in 2018, 2020 and 2025.
It should be noted that based on discussions with developers and brokers familiar with the developments
that approximately half of the proposed Deerfoot City expansion should be completed by 2018, with the
remainder of the project completing by 2021. The first phase of Stonegate Common is expected to
become available by 2019, we have assumed that 30% of the project will become available as the first
phases are available in 2019 and 2020.
Proposed Retail Completion TimelineProperty Name Size (SF)
Completions by 2018
The District 93,225
Stonegate Plaza 18,000
Deerfoot City (50%) 144,644
Jacksonport Sheppard 200,000
Total 455,869
Completions by 2020
Stonegate Common (30%) 202,406
Total 202,406
Completions by 2025
Deerfoot City (50%) 144,644
Jacksonport Riocan 853,231
Stonegate Common (70%) 472,280
Keystone Common 800,000
Total 2,270,155
As such, we would expect the trade area to support the square feet of retail and service space per capital
as follows.
5 Km Trade Area
Floorspace Demand
2015
Population 103,915
Average per Capital Retail (SF) 22.88
Supportable Commercial (SF) 2,377,575
Existing Inventory (SF) 2,122,574
Oversupply / Undersupply (SF) 255,001
2018
Population 108,969
Average per Capital Retail (SF) 22.88
Supportable Commercial (SF) 2,493,211
Proposed Inventory (SF) 2,578,443
Oversupply / Undersupply (SF) 85,232
2020
Population 112,103
Average per Capital Retail (SF) 22.88
Supportable Commercial (SF) 2,564,917
Proposed Inventory (SF) 2,780,849
Oversupply / Undersupply (SF) 215,932
2025
Population 119,374
Average per Capital Retail (SF) 22.88
Supportable Commercial (SF) 2,731,277
Proposed Inventory (SF) 5,051,003
Oversupply / Undersupply (SF) 2,319,726
Retail Demand
Based on the above demand analysis, there was an undersupply of retail at the end of 2015, however by
2018 the current undersupply will be addressed and continue to increase oversupply in 2020 and 2025,
when the amount of oversupply become significant. It is thought that developers and retailers have
responded to the consumer demand within the trade area with the several projects under construction, in
the approval stages or in the advanced planning stages.
By 2018, which is considered a relatively short period of time, the amount of inventory being brought into
the market will address the current undersupply market conditions and bring 85,232 square feet of
oversupply, continuously increasing to a total of 2,319,726 square feet in oversupply by 2025.
Any additional inventory brought to the market over and above the projects currently planned will
exasperate the oversupply, bringing about the potential for unwanted vacancies and question the
commercial viability of future projects if commercial space is required within.
Conclusions According to the Colliers International 2015 Fall Retail Report, the Northeast quadrant has overtaken the
Southeast as the most active developer and retailer market over the past six months. Of the ten projects
under construction and proposed within the Northeast, seven are located within the five kilometer trade
area of The Parks at Harvest Hills.
Of the existing developments within the five kilometer trade area, the developments represent all of the
major grocery tenants (Sobey’s, Co-Op, Safeway, Save on Foods, Superstore), financial tenants (RBC,
TD Canada Trust, HSBC, Scotiabank), Convenience Stores (Mac’s, 7/11), Drug Stores (London Drugs,
Rexall) and restaurants (Tim Hortons, McDonalds, Boston Pizza). In addition to these the trade area will
be serviced by a Wal-Mart in Stonegate Common, and is currently serviced by a Canadian Tire, Home
Depot and a Landmark Cinema. Taking into consideration the existing tenants, it is unlikely any of these
would also need to be located within The Parks at Harvest Hills.
Based on the preceding analysis of the five kilometer trade area, as of 2015 the trade area is thought to
be undersupplied by commercial development, however by 2020 the trade area will be oversupplied with
commercial development by over 300,000 square feet, and then oversupplied by over 1,400,000 square
feet by 2025. Based on this, it is believed that the planned commercial space will address the current
undersupply which the trade area is current experiencing. As such, any new commercial development
would not be recommended.
Based on the analysis within this report, it is our opinion and recommendation that no commercial space
should be included in any planning for the subject site as demand, suitability and commercial viability are
highly questionable.
Appendices
Appendix A Contingent and Limiting Conditions
Appendix B Definitions
Appendix C Certification
Appendix A
Contingent and Limiting Conditions
Contingent and Limiting Conditions
This report has been prepared at the request of QuantumPlace Developments Ltd. for the
purpose of providing market knowledge relating to Commercial Demand Analysis for The
Parks at Harvest Hills, Calgary, Alberta. It is not reasonable for any person other than the
person or those to whom this report is addressed to rely upon this appraisal without first
obtaining written authorization from QuantumPlace Developments Ltd. and the author of this
report. This report has been prepared on the assumption that no other person will rely on it for
any other purpose and all liability to all such persons is denied.
This report has been prepared at the request of QuantumPlace Developments Ltd. and for the
exclusive (and confidential) use of, the recipient as named herein and for the specific purpose
and function as stated herein. All copyright is reserved to the author and this report is considered
confidential by the author and QuantumPlace Developments Ltd. Possession of this report, or
a copy thereof, does not carry with it the right to reproduction or publication in any manner, in
whole or in part, nor may it be disclosed, quoted from or referred to in any manner, in whole or in
part, without the prior written consent and approval of the author as to the purpose, form and
content of any such disclosure, quotation or reference. Without limiting the generality of the
foregoing, neither all nor any part of the contents of this report shall be disseminated or
otherwise conveyed to the public in any manner whatsoever or through any media whatsoever or
disclosed, quoted from or referred to in any report, financial statement, prospectus, or offering
memorandum of the client, or in any documents filed with any governmental agency without the
prior written consent and approval of the author as to the purpose, form and content of such
dissemination, disclosure, quotation or reference.
The land herein relates to the fee simple interest in the real property.
The information contained in this report is founded upon a thorough and diligent examination and
analysis of information gathered and obtained from numerous sources. Certain information has
been accepted at face value, especially if there was no reason to doubt its accuracy. Other
empirical data required interpretative analysis pursuant to the objective of this report. Certain
inquiries were outside the scope of this mandate. For these reasons, the analyses, opinions and
conclusions contained in this report are subject to the following Contingent and Limiting
conditions.
The author of this report is not qualified to comment on environmental issues that may affect the
selected communities, including but not limited to pollution or contamination of land, buildings,
water, groundwater or air. Unless expressly stated, the all communities are assumed to be free
and clear of pollutants and contaminants, including but not limited to moulds or mildews or the
conditions that might give rise to either, and in compliance with all regulatory environmental
requirements, government, or otherwise, and free of any environmental condition, past, present
or future, that might affect the market value of the communities. If the party relying on this report
requires information about environmental issues then that party is cautioned to retain an expert
qualified in such issues. We expressly deny any legal liability relating to the effect of
environmental issues on the market value of the property appraised.
Investigations have been undertaken in respect of matters which regulate the use of land.
However, no inquiries have been placed with the fire department, the building inspector, the
health department or any other government regulatory agency, unless such investigations are
expressly represented to have been made in this report. Each community must comply with such
regulations and, if it does not comply, its non-compliance may affect the market value of this
community. To be certain of such compliance, further investigations may be necessary.
The data and statistical information contained herein were gathered from reliable sources and
are believed to be correct. However, these data are not guaranteed for accuracy, even though
every attempt has been made to verify the authenticity of this information as much as possible.
Should the author of this report be required to give testimony or appear in court or at any
administrative proceeding relating to this report, prior arrangements shall be made beforehand,
including provisions for additional compensation to permit adequate time for preparation and for
any appearances that may be required. However, neither this, nor any other of these
assumptions or limiting conditions, is an attempt to limit the use that might be made of this report
should it properly become evidence in a judicial proceeding. In such a case, it is acknowledged
that it is the judicial body which will decide the use of this report which best serves the
administration of justice.
Because market conditions, including economic, social and political factors, change rapidly and,
on occasion, without notice or warning, the information expressed herein, as of the effective date
of this appraisal, cannot necessarily be relied upon as of any other date without subsequent
advice of the author of this report.
This report is only valid if it bears the original signature(s) of the author(s).
These Contingent and Limiting Conditions shall be read with all changes in number and gender
as may be appropriate or required by the context or by the particulars of this mandate.
Appendix B
Definitions
Definitions
Property Interests
Fee Simple Absolute ownership unencumbered by any other interest or estate subject
only to the four powers of government.
Leased Fee Estate An ownership interest held by a landlord with the right of use and
occupancy conveyed by lease to others; the rights of lessor or the leased
fee owner and leased fee are specified by contract terms contained within
the lease.
Leasehold Estate The right to use and occupy real estate for a stated term and under certain
conditions; conveyed by a lease.
General Definitions
Adjusted or Stabilized Overall Capitalization Rate is usually derived from transactions with excessive
vacancy levels or contract rents over/under market levels. In such cases, net operating income is
“normalized” to market levels and the price adjusted to reflect expected costs required to achieve the
projected net operating income.
The Cost Approach to value is based upon the economic principle of substitution, which holds that the
value of a property should not be more than the amount by which one can obtain, by purchase of a site
and construction of a building without undue delay, a property of equal desirability and utility.
Direct or Overall Capitalization refers to the process of converting a single year’s income with a rate
or factor into an indication of value.
The Direct Comparison Approach examines the cost of acquiring equally desirable and valuable
substitute properties, indicated by transactions of comparable properties, within the market area. The
characteristics of the sale properties are compared to the subject property on the basis of time and such
features as location, size and quality of improvements, design features and income generating potential
of the property.
Discount Rate is a yield rate used to convert future payments or receipts into a present value.
Discounted Cash Flow Analysis offers an opportunity to account for the anticipated growth or decline
in income over the term of a prescribed holding period. More particularly, the value of the property is
equivalent to the discounted value of future benefits. These benefits represent the annual cash flows
(positive or negative) over a given period of time, plus the net proceeds from the hypothetical sale at the
end of the investment horizon.
Two rates must be selected for an application of the DCF process:
the internal rate of return or discount rate used to discount the projected receivables;
an overall capitalization rate used in estimating reversionary value of the asset.
The selection of the discount rate or the internal rate of return is based on comparing the subject to
other real estate opportunities as well as other forms of investments. Some of the more common bench
marks in the selection of the discount rate are the current yields on long term bonds and mortgage
interest rates.
Exposure Time is the property's estimated marketing time prior to a hypothetical sale at market value
on the effective date of the appraisal. Reasonable exposure time is a necessary element of a market
value definition but is not a prediction of a specific date of sale.
Highest and Best Use - The purpose of a highest and best use analysis is to provide a basis for
valuing real property. Highest and best use is defined by the Appraisal Institute of Canada as:
“that use which is most likely to produce the greatest net return over a period of
time.” The highest and best use must be legally permissible, physically
possible, financially feasible and maximally productive.
The Income Approach to value is utilized to estimate real estate value of income-producing or
investment properties.
Internal Rate of Return is the yield rate that is earned or expected over the period of ownership. It
applies to all expected benefits including the proceeds of sale at the end of the holding period. The IRR
is the Rate of Discount that makes the net present value of an investment equal zero.
Market Value - The Uniform Standards of Professional Appraisal Practice adopted by the Appraisal
Institute of Canada define “Market Value” (The Appraisal Institute of Canada, Canadian Uniform
Standards of Professional Appraisal Practice, 2014 Pages 62-63) as:
"The most probable price, as of a specified date, in cash, or in term equivalent to
cash, or in other precisely revealed terms, for which the specified property rights
should sell after reasonable exposure in a competitive market under all conditions
requisite to a fair sale, with the buyer and seller each acting prudently,
knowledgeably, and for self-interest, and assuming that neither is under undue
duress.
Implicit in this definition are the consummation of a sale as of the specified date and the passing of title
from seller to buyer under conditions whereby:
buyer and seller are typically motivated;
both parties are well informed or well advised and acting in what they consider their best
interests;
a reasonable time is allowed for exposure in the market;
payment is made in terms of cash in Canadian dollars or in terms of financial arrangements
comparable thereto;
the price represents the normal consideration for the property sold unaffected by special or
creative financing or sales concessions granted by anyone associated with the sale.
Net Operating Income is the actual or anticipated net income remaining after all operating expenses
are deducted from effective gross income before debt service and depreciation. Net Operating Income
is usually calculated for the current fiscal year or the forthcoming year.
Overall Capitalization Rate is an income rate that reflects the relationship between a single year’s net
operating income expectancy and the total property price. The Overall Capitalization Rate converts net
operating income into an indication of a property’s overall value.
Reasonable Exposure Time - Exposure time is always presumed to precede the effective date of the
appraisal. It may be defined as:
"The estimated length of time the property interest being appraised would have
been offered on the market prior to the hypothetical consummation of a sale at
market value on the effective date of the appraisal. It is a retrospective estimate
based upon an analysis of past events assuming a competitive and open market."
A Yield Rate is applied to a series of individual incomes to obtain a present value of each.
Appendix C
Certification
Certification Commercial Demand Analysis
The Parks at Harvest Hills, Calgary, Alberta
I certify that, to the best of our knowledge and belief:
The statements of fact contained in this report are true and correct;
The reported analyses, opinions and conclusions are limited only by the reported Contingent and Limiting
conditions, and are our personal, unbiased professional analyses, opinions and conclusions;
I have no present or prospective interest in the property that is the subject of this report, and I have no personal
interest or bias with respect to the parties involved;
I have no bias with respect to the property that is the subject of this report or to the parties involved with this
assignment;
My engagement in and compensation for this assignment were not contingent upon developing or reporting
predetermined results, the amount of the value estimate, or a conclusion favouring the client;
My analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the
Canadian Uniform Standards of Professional Appraisal Practice and with the requirements of the Code of
Professional Ethics and Standards of Professional Practice of the Appraisal Institute of Canada;
I have the knowledge and experience to complete the assignment competently.
No one provided significant professional assistance in the preparation of this report;
As of the date of this report the undersigned have fulfilled the requirements of The Appraisal Institute of Canada’s
Continuing Professional Development Program for designated and candidate members; and
I am licensed to practice in the province of Alberta.
Stephanie Bird, B.Mgt, AACI, P. App
Senior Associate, Calgary
