Business in Calgary

solid: calgary’s Market • Commercial Real Estate
Paul Marsden, vice president / partner - industrial sales and
leasing with Colliers International
Mostly as a result of Calgary’s enviably
high employment and income
levels, and the 36.6 average age being
in the potent demographic range for
retailers, the retail sector has grown
steadily over the past 10 or so years.
The good (retail) news? Not only
do many Canadian chains often have
several Calgary locations but the city
continues to draw more and more U.S.
retailers.
The bad news? Calgary’s retail
attractiveness is causing a slight
retail real estate drought with a lack
of desirable, suitable and good retail
space, especially in the northwest and
southwest.
Commercial real estate experts and
clients agree. Calgary’s industrial real
estate market is booming.
The positive momentum of Calgary’s
industrial real estate situation
is spurred primarily by stability and
growth, especially among the key
industrial real estate clients in the
warehouse, transportation, distribution
and manufacturing sectors, and
most usually need expansive space.
A unique bonus is that, unlike most
other Canadian cities, Calgary is not
limited by a lack of industrial land. A
strong leasing market keeps vacancy
levels low while the availability of
large parcels of developable land
ensures a steady source of new supply.
“The Calgary numbers show that
2013 was a very good year for industrial
space and activity for 2014 is
already strong. There’s about 2.5
million square feet of tenants looking
for industrial space in Calgary,”
says a confident and buoyant Paul
Marsden, vice president and partner,
industrial sales and leasing, with
Colliers International.
“A key driver of industrial space is
consumer confidence. When consumer
confidence is strong, the demand for
warehousing, distribution and manufacturing
space increases,” Marsden
explains.
“Calgary is already considered a
major Canadian distribution centre.
The city’s geographic location is also a
major factor for industrial real estate.
One of the industry’s criteria is the
ability to reach a desired population
base (by truck or rail) within a 10-hour
range.”
Also, in industry lingo, Calgary is
considered an “inland port,” with loads
coming from a ship (in Vancouver) by
rail, direct to the Calgary warehouse.
“Industrial leasing factors like that
are vitally important and give Calgary
a significant edge. It’s why businesses
giants like Lowe’s and Nordstrom are
consolidating warehouse facilities from
other markets in Calgary and why
Walmart and Target are strategically
taking even more industrial real estate
space in Calgary,” Marsden says with
enthusiasm and a hint of pride.
The news is also good when it comes
to “new space” for Calgary.
According to Statistics Canada,
investment in non-residential building
construction topped $973 million in
the core area in the fourth quarter of
2013, and the positivity further shows
that the amount was a 3.4 per cent
year-over-year gain.
The national trend fares nearly
as well as Calgary, with investment
jumping to $12.9 billion in the fourth
quarter, up by only 1.3 per cent from
the same quarter the year before.
Calgary’s commercial (industrial,
office, retail and investment) real
estate numbers are the true indicators
that Calgary is well on its way to earning
the ranking of – an international
market. BiC
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businessincalgary.com | BUSINESS IN CALGARY March 2014 • 61