The Calgary Industrial Perspective - Colliers International

CALGARY PERSPECTIVE I SECOND QUARTER 2010 I INDUSTRIAL
Current Freestanding / Land / Condo Trends
The freestanding owner/user sales market continued to be strong through the second quarter of 2010. Driven by low
interest rates, more favorable financing and a general opinion that sale values have hit bottom and are beginning to
rebound has resulted in strong activity. The number of quality freestanding buildings currently on the market is very
limited which should result in more land sales. Users will determine that purchasing an existing suitable property is not an
option and focus on new build to suits, which we are beginning to see now on requirements under 15,000 square feet that
has resulted in more land sales within Calgary after a slow 2009. The City of Calgary owns and is offering the majority
of the fully serviced industrial land available in the southeast for sale. The City remained relatively firm on asking prices
despite the large inventory available when compared to private owners and developers who have reacted to the changing
land market in 2009 and 2010 with lower prices.
All eight of the lots in Phase I of the City’s Great Plains Industrial Park remain available at asking prices from $550,000 -
$675,000 per acre with only two lots available that are less than 2 acres in size. All remaining lots available from the City
in Eastlake Industrial Park are over 2 acres although there are smaller lots available from private owners. Average selling
prices in the southeast remained at approximately $510,000 - $540,000 per acre. Remaining lots in Eastlake have asking
prices from $560,000 - $625,000 per acre.
Asking prices for partially serviced industrial land along the 84th Street Corridor remain stable in the second quarter with
prices from $265,000 - $350,000 per acre and sales transacting in the same range.
Springbank Commercial Park on the west side of Calgary which rarely sees transactions due to the small inventory of
land saw three separate land sales. A total of seven acres sold in Springbank at approximately $350,000 per acre. These
sales all occured in the second quarter.
The northeast and central industrial land prices remained relatively unchanged at approximately $800,000 - $1,000,000
per acre given the lack of immediate inventory available.
The industrial condo market saw a resurgence in the second quarter of 2010. Virtually all of the existing condo bays in
Eastlake Industrial Park that were constructed in 2008/2009 and remained on the market during the downturn in 2009
have now sold. This is a positive sign of a more active industrial sales market as small bay condo sales are typically the
first to slow in a downturn and the last to come back in an improving market. Selling prices for “shell” condo bays are
$150 - $185 per square foot for units of approximately 3,000 square feet. This is off of peak pricing of $185 - $200 per
square foot seen in 2008.
Notable transactions
LEASED - 220,000 square feet
Landlord: The Beedie Group
Tenant: TransCanada Turbines
SOLD - 4.04 acres
Vendor: Jayben Holdings Ltd.
Purchaser: ASC Springbank Inc. - Lot 4
Purchaser: Outer Edges Landscaping Inc. - Lot 5
COLLIERS INTERNATIONAL 3