TSX:SOT.DB - Post by User
Comment by
InvestSmarteron Apr 10, 2023 10:08pm
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Post# 35387735
RE:I’m not worried Californian office not Canada
RE:I’m not worried Californian office not Canada Oversupply in the USA is a real problem. There is a lot of land to build (in most areas in the USA). Downtown Toronto, Montreal & Vancouver have limited land to build. The issue I have with SOT, is the SLAM management getting paid/incentivised on buying properties, and the asset location. The locations are not supply limited. Building new supply in their areas, and their older, sub A class buildings, are major issues with SOT. The quality is just not there. They dont have pricing power, and need to spend a lot of CAP-EX to get the current buildings up to where they need to be to attract new tenants when leases expire. When leases expire, those tenants can "move up" to higher quality buildings wtih better ammenities. This is already happening.