COVERING THE GROUND INTO 2020

Like a number of our Industrial clients we cover a lot of ground and work through all of Alberta (we have an experienced team in Calgary that services Calgary / Southern Alberta - David Nicol, Dan Cavanagh, Karsten Prochera ). A quick snapshot below of a few market notes and properties I have listed through Alberta.

• Safe to say that there are options for Tenants in all major Industrial areas of Alberta, and as we come into the late stages of 2019 we have seen lease rates taper off a little through all northern markets - Leduc/Nisku, Edmonton, Grande Prairie, Fort Mac. A challenging market in regional areas over the past few years and it looks like that will continue into 2020.
• We are seeing flexibility with Commencement Dates / Fixturing Periods to get a deal over the line - Landlord's with Industrial vacancy eager to get deals done before the onset of winter. (Landlord's not as aggressive as late 2015/2016 - other Landlord incentives remain reasonably tight).
• As has been consistent over the past couple of years, free-standing buildings with low site coverage and ready to work (cranes / wash bay / heavy power) continue to see interest. Rare to see length of lease term greater than 5 years. These buildings continue to sell reasonably well.
• Owners that present their buildings in best way possible tend be rewarded for their efforts - clean shop/offices, neat yard, lights working, damages from previous Tenants repaired etc.
• Sales of Multi-Tenant Industrial buildings have slowed - 2019 on track to see less than 50% of 2018 sales value in Edmonton market. Purchasers / Vendors should expect Cap rate around 6.66 %, $125 $/SF average (The Network - Nov 2019).

Don't hesitate to let me know if you have any Industrial Real Estate requirements through Alberta - only too happy to help out or point in the right direction.

LLOYDMINSTER - 13,500 SF (+7,000 SF cold storage) on 3.10 acres

PROVOST - 18,546 SF on 3.08 acres

LEDUC - 40,250 SF on 4 acres

GRANDE PRAIRIE - 76,000 SF (3 buildings) on 26 acres

NISKU - 22,500 SF on 2.17 acres