Presented by: Rod Connop, Vice President

Greater Edmonton Industrial Vacancy

Greater Edmonton Industrial Vacancy Rate Q1-2008

“1.44%”

NiskuVacancy

1.10%

Acheson Vacancy

4.46%

Northwest Vacancy

1.59%

St. Albert Vacancy

0.60%

Central Vacancy

0.43%

Northeast Vacancy

0.00%

Southeast Vacancy

1.50%

Sherwood Park

Vacancy0.95%

Greater Edmonton Industrial Vacancy Rate (%)

Metro Edmonton Inventory 78,559,928 Sq. Ft.

Greater Edmonton Inventory 16,827,903 Sq. Ft.

Total: 95,387,831 Sq. Ft.

1.44%1.51%

2.23%2.66%

4.62%4.20%

3.70%

4.10%3.90%

4.90%5.40%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Q1-2008

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%2005 2006 2007 Q1-2008

2005 3.25% 2.26% 0.90% 2.40% 2.00% 1.70% 0.30% 0.60%2006 2.56% 1.88% 0.50% 1.90% 1.20% 1.60% 0.50% 0.50%2007 1.93% 1.59% 0.19% 0.65% 0.71% 0.81% 0.18% 4.46%Q1-2008 1.59% 1.50% 0.00% 0.43% 1.10% 0.60% 0.95% 4.46%

Northwest Southeast Northeast Central Nisku St. Albert Sherwood Park

Acheson

Greater Edmonton Vacancy Rate by Market

1 Vacancy of 107,018

Sq, Ft,

Outside City Limits (1.47%)Metro Edmonton (1.43%)

Metro Edmonton New Construction 2008 Forecast

*Forecast based on current construction in Northwest & Southeast Edmonton to be

completed in 2008.

Northwest Edmonton – 1,700,000 square feet under construction

Southeast Edmonton – 1,750,000 square feet under construction

1,25

0,00

0

1,20

0,00

0

1,10

0,00

0

1,82

0,00

0

1,60

0,00

0

1,10

0,00

0

2,15

0,00

0

3,460,208

2,92

5,00

0

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

2000 2001 2002 2003 2004 2005 2006 2007 *2008

(Squ

are

Feet

)

Metro Edmonton Industrial Net Absorption

1,75

0,00

0

950,

000

1,45

0,00

0

1,25

0,00

0

2,20

0,00

0

3,14

4,00

0

2,35

0,00

0

1,35

0,00

0

504,794

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2000 2001 2002 2003 2004 2005 2006 2007 Q1-2008

(Squ

are

Feet

)

Metro Edmonton Industrial Lease Rates

$7.25 - $8.0010,000 –30,000

Southside

$6.00 - $7.25>30,000Northwest

$6.25 - $7.25>30,000Southside

$8.00 - $12.50<10,000Southside

$7.00 - $8.0010,000 –30,000

Northwest

$8.00 - $12.00<10,000Northwest

Face Rate (average PSF)

Size (sf)Area

$8.00 - $12.0010,000 –30,000

Southside

$7.50 - $10.50>30,000Southside

$7.25 - $8.50>30,000Northwest

$8.50 - $14.00<10,000Southside

$7.50 - $8.7510,000 –30,000

Northwest

$8.50 - $12.00<10,000Northwest

Face Rate (average PSF)

Size (sf)Area

Existing Product New Product

Greater Edmonton Industrial Lease Rates

$10.00 - $14.00

$12.00 - $15.00

$9.50 - $12.50

$12.00 - $14.00

5,001 – 10,000

$10.00 - $14.00

$12.00 - $15.00

$9.50 - $12.00

$11.00 - $14.00

10,001 – 20,000

$9.00 - $12.00

$9.75 - $13.00

$8.50 - $14.00

$10.50 - $12.50

20,001 – 50,000

$8.00 - $13.00$9.00 - $13.00Leduc County

(Nisku)

N/A$12.00 - $15.00Strathcona

County (Sherwood Park)

$8.50 - $14.00$9.50 - $13.50Parkland County

(Acheson)

N/A$12.00 - $14.00Sturgeon County

(St. Albert)

50,001 +1 – 5,000Range (Sq. Ft.)

Existing Product

Greater Edmonton Industrial Land Comparables

• Metro Edmonton

Fully serviced sites (average) (IM) $500,000.00 - $700,000.00 per acre

(IB) $600,000.00 - $850,000.00 per acre

Un-serviced land sites (average) (AGI) $150,000.00 - $200,000.00 per acre

• Leduc County/Nisku

Fully serviced sites (average) $275,000.00 - $350,000.00 per acre

• County of Strathcona/Sherwood Park


• Parkland County/Acheson


Greater Edmonton Industrial Land Sales 2007

0

200

400

600

800

1000

1200

1400

(Acr

es)

$-

$50.00

$100.00

$150.00

$200.00

$250.00

$300.00

$350.00Site Area (Acres) Dollars (Millions)

Site Area (Acres) 291 557 690 350 190 330 250 310 693 1024 816 1170Dollars (Millions) $13.60 $33.30 $44.80 $32.00 $25.00 $30.00 $36.00 $52.00 $79.90 $146.50 $217.30 $320.50

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Greater Edmonton Industrial New Developments

• Yellowhead Transport Depot (Remington)

• Horizon Business Park (Hopewell)

• Yellowhead Crossing II (Bentall)

• Fourell Lands (Panattoni)

• Sunwapta Industrial Park (GE/ Dundee)

• City West South Business Park (Bentall/ ING)

• Winfield West (Opus)

• Northport Business Park (ING/ Verus)

• Golden West Golf Course Site (Qualico)

• Westpoint Corporate Centre (HOOP)

• Giffels Business Park

• Gregg Development Site

• Hopewell Beaverbrook Site

Northwest Edmonton

HOLDING COMPANY

HOLDING COMPANY

HOLDING COMPANY

HOLDING COMPANY

HOLDING COMPANY HOLDING

COMPANY

HO

LDIN

G

CO

MP

AN

Y

CIT

Y L I

MIT

SGiffels

Business Park

Northport Industrial Centre

(Verus-ING)

Fourell Lands (Panattoni)

Winfield West (Opus)

Westpoint Corporate Centre

(HOOPP)

111th Avenue

Stony Plain Road

118th Avenue

137th Avenue

156t

hSt

reet

170t

hSt

reet

215t

hSt

reet

184t

hSt

reet

Sunwapta Business Park (GE/Dundee)

Yellowhead Crossing II

(Bentall)

Yellowhead Trail

Ant

hony

Hen

day

Driv

e

St. Albert Trail

Golden West Redevelopment

(Qualico)

Gregg Development

Site

Horizon Business

Park (Hopewell)

Yellowhead Transport

Depot (Remington)

ST. ALBERT

CN

In

ter m

odal

F a

c ilit

y

Yellowhead Trail

PAR

KLA

ND

CO

UN

TY

BIG LAKE

City West South (ING)

Hopewell Beaverbrook

Site

Greater Edmonton Industrial New Developments

Southeast Edmonton

• South Central Business Park (Remington/ GWL)

• 50th Street Business Park (GPM)

• Prospect Business Park (GWL & Remington)

• Capital Industrial Park

• Ellerslie Industrial Park

• Gateway Business Park (WAM)

• Roper Ridge Business Park (Trillium)

• Pylypow Development Site

• CityView Centre (Oxford)

• QE II Business Park

• First Park Nisku (First Industrial)

• Intermodal South Business Park (Verus/Sun Life)

Sherwood Park Freeway

34th

Stre

et

17th

Stre

et

50th

Stre

et75th

Stre

et

82nd Avenue (Whyte Ave)

Whitemud Drive

86th

Stre

et

Argyll Road

Ant

hony

He n

day

Dr iv

e

34th

Stre

et

17th

Stre

et

50th

Stre

et

Roper Road

HOLDING COMPANY

HOLDING COMPANY

Prospect Business

Park (GWL)

South Central Business Park (Remington)

Roper Ridge Business

Park (Trillium)

Commerce South Industrial Park II

(Sunlife Financial)

City View Business

Park (Oxford)

City of Edmonton

City of Edmonton

Private OwnerPrivate

Owners

Pylypow Industrial

CentreWhitemud Drive

CITY LIMITS

STRATHCONA COUNTY

STR

ATH

CO

NA

CO

UN

TY

CIT

Y LI

MIT

S

Cornerstone Industrial Park

(Hopewell)

Capital Industrial Site

50th Street Business Park

(GPM)76th Avenue

CITY LIMITS CITY LIMITS

111t

hSt

reet

91st

Stre

et

50th

Stre

et

66th

Stre

et

Calg

ary T

rail S

outh

9th Avenue SW 9th Avenue SW

41st Avenue SW 41st Avenue SW

Ellerslie Road

Gat

eway

Bou

leva

rd

LEDUC COUNTYLEDUC COUNTY

Pars

o n’s

Rd

CP Rail Intermodal

Site

Intermodal South Business

Park (Verus/Sun Life)

Anthony Henday DriveAnthony Henday Drive

Que

en E

lizab

eth

II Hi

ghw

ayEllerslie Road

66th

Stre

et

50th

Stre

et

Ellerslie Industrial

Park

Development Lands

(Carma)

City of Edmonton

Development Lands

(Carma)

Development Lands

(Carma)

Gateway Business Park

(WAM)

Future NAIT South Campus

CITY LIMITS 41st Avenue SW CITY LIMITS

LEDUC COUNTYLEDUC COUNTY

20th Avenue 62519

EDMONTON INTERNATIONAL

AIRPORT

NISKU

9th

Stre

et

Que

en E

lizab

eth

II Hi

ghw

ay

Appr

oved

Spi

ne R

d.

Development Lands (WAM)

QEII Business Park(Hopewell)

First Park Nisku (First Industrial)

Finning

Regent

Ledcor

41st Avenue SW

Development Lands

(Remington)

North America Industrial Lease ComparisonsEdmonton, Canada

Lease Rate: $7.25Vacancy Rate: 1.5%

Note: Lease rates are based on industrial warehouse/distribution space GREATER than 10,000 square feet. CA$

Vacancy rates recorded Q4-2007Calgary, Canada


Vancouver, Canada


Toronto, Canada


Montreal, Canada


San Diego, USA


Seattle, USA


Los Angeles, USA


Chicago, USA


Phoenix, USA


Dallas, USA


Houston, USA


1

2

3

4

5

67

8

9

6

Philadelphia, USA


Detroit, USA


Atlanta, USA


10

12

13

14

11

15

# = Highest to lowest Lease Rates

• Speculative Construction

• Vacancy Rates

• Lease Rates

• Land Prices

• Challenges

• Future Land Supply

• Construction Costs!

• Costs for non-oil & gas participants

Greater Edmonton Industrial Forecast 2008

For additional information, please contact:

Richard Matthew Regional Research Director - Western Canada [email protected]

3555 Manulife Place 10180 - 101 Street Edmonton, Alberta

(P) 780.969.3008 (F) 780.424.7830

Presented by: Rod Connop, Vice President · 16/04/2008 · Greater Edmonton Industrial Land...

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Transcript of Presented by: Rod Connop, Vice President · 16/04/2008 · Greater Edmonton Industrial Land...