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MARKET REPORTEDMONTON INDUSTRIAL
Q2 2017
QUARTERLY HIGHLIGHTS
6.5% Vacancy across Edmonton Industrial space. A decrease in Acheson, Leduc & Nisku but a slight rise in both South
& North West Edmonton.
$12.00Average Leduc & Nisku Base Rent.
Tightening of supply.
STAND ALONEBUILDINGS
10,000-15,000 SF stand alone buildings remain in high demand
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CentralNorth East
(Including Fort Saskatchewan)
North West
South Edmonton
& Sherwood
Park
Acheson,Spruce Grove &
Stony Plain
Leduc & Nisku Total
Total Inventory (SF) 3,758,813 7,232,970 67,364,227 66,765,745 6,728,651 18,365,446 170,215,852
Occupied Space (SF) 3,600,765 6,923,378 63,233,039 62,116,939 6,374,604 16,871,719 159,120,444
Vacant Space (SF) 158,048 309,592 4,131,188 4,648,806 354,047 1,493,727 11,095,408
Vacancy (%) 4.2% 4.3% 6.1% 7.0% 5.3% 8.1% 6.5%
Sublet (SF) 18,602 40,430 486,571 985,828 25,970 197,130 1,754,531
Base Rent $/SF $9.59 $9.55 $9.94 $9.60 $14.89 $12.00 $10.31
Land Available (Acres Marketed) - 3,535 325 1,628 1,675 2,030 9,193
MARKET DISCUSSION
MARKET SNAPSHOT
The vacancy rate of Edmonton’s Industrial market rose from 6.1% in Q4 2016 to 6.5% for Q1 2017. The rental market is still in the Tenant’s favor and there has been little to no pressure on lease rates as we enter Q2 2017. Rates have remained firm for Industrial and land sales, with Vendors/Landlords exhibiting patience in most cases. Through Q1 2017 we saw slight increases in vacancy through both the North West and South East markets of Edmonton as companies continued their consolidation plans and spec buildings continue to come available. As we move through Q2 2017 there is no shortage of small bay options with very attractive lease rates for Tenants.
Revisiting Q1 2017, the story to tell was definitely Leduc-Nisku. We have seen a steady decline in the vacancy rate over the past 3 quarters and the vacancy rate is now down to 8.1%, a far cry from late 2015/early 2016 when vacancy tipped into the low 20% range. However, there is a divide above and below 15,000 SF, with increasing demand for 15,000 SF and less, especially if building site coverage is low. There are a number of larger (greater than 30,000 SF) and older properties on the market that are receiving little interest. The surrounding areas of the city, such as Acheson, Fort Saskatchewan and Devon have maintained at similar levels to Q1 2017, but it should be noted that all areas of the city continue to see demand for standalone buildings around the 10,000 SF range and we expect this demand to continue into the second half of 2017. The same cannot be said of the West and South Edmonton multi-bay rental markets, and while Vendors may stand firm on sales, there will be a number of good opportunities for Tenants in the second half of 2017.
EDMONTON INDUSTRIAL Q2 2017
Sourced: Lizotte Research and Advisory & CoStar Group
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FEATURE LISTINGS
EDMONTON INDUSTRIAL Q2 2017
SOUTH EDMONTON OFFICE/WAREHOUSE
HARVEST INDUSTRIAL PARK
CLEARVIEW INDUSTRIAL PARK
PROVOST INDUSTRIAL WAREHOUSE/YARD
FOR SALEMUNICIPAL ADDRESS: 10008-32 Avenue, Edmonton, ABSIZE: 10,048 Sq.Ft on 1.28 Acres (+/-)PURCHASE PRICE: $2,450,000.00
FOR SALE/FOR LEASEMUNICIPAL ADDRESS: 34 Street & 63 Avenue, Leduc, ABSIZE: 11,040 Sq.Ft - 22,080 Sq.Ft (+/-)LEASE RATE: $14.50 - $15.00/Sq.FtPURCHASE PRICE: $255.00 - $265.00/Sq.Ft
FOR SALEMUNICIPAL ADDRESS: Clearview Drive, Red Deer, AB SIZE: 2 - 28 Acres (+/-)PURCHASE PRICE: $215,000.00 - $275,000.00/Acre
FOR SALE/SUBLEASEMUNICIPAL ADDRESS: 25 Wheatland Crescent, Provost, ABSIZE: 12,000 Sq.Ft SUBLEASE on 0.75 Acres SALE (+/-)LEASE RATE: $10.00/Sq.Ft (office/warehouse)PURCHASE PRICE: Market (Industrial yard with warehouse)
FOR SALEVarious lot sizes and large parcel opportunity with flexible Industrial zoning located just west of Highway 2
in the town of Crossfield.
PURCHASE PRICE: $450,000.00/Acre
BLACK BULL INDUSTRIAL PARK
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TENANT/PURCHASER REPRESENTATION
EDMONTON INDUSTRIAL
Lizotte and Associates Tenant/Purchaser Representation Service assists to find and acquire the most suitable space for our cleints, as well as negotiate lease renewals, lease amendments and purchases. Whether it be a short-term lease, build-to-suit or purchase, we are committed to following our analytic and thorough process:
• Research, Analysis and Planning• Site Selection and Project Management• Contract Negotiations / Lease Renewals• Transaction Management and Conveyancing
Our transparent and streamlined process allows our clients to focus on running their business while we work to achieve favorable rates and terms in their ideal location.
• We represent our partner’s interests with local or Institutional Vendors.• We have experience dealing with local and Institutional Landlord’s. • We understand what motivates real estate owners and use that insight in negotiations.• We see the deal through from writing the Offer to Lease/Purchase to you receiving the keys.
For more information call one of our Industrial team, or check out the Case Study of our recent representation of Rocanda in Leduc at www.lizotterealestate.com.
WE COVER ALBERTA
With industry leading analysis and market coverage, we are pleased to announce that we cover all of Alberta’s industrial markets. From leasing to sales, we are able to provide a comprehensive
The information contained herein was obtained from sources which we deem reliable and, while thought to be accurate and correct is not guaranteed by Lizotte and Associates Real Estate Inc.
© 2017 Lizotte and Associates Inc.
INDUSTRIAL TEAM:
RICHARD LIZOTTEPresident/Broker
HARRIS PIPELLAVice President/Associate
JIM MCKINNONPartner/Associate
• Edmonton• Calgary• Fort McMurray
• Bonnyville• Grand Prairie• Red Deer
• Drayton Valley• Lethbridge• Lloydminster
• Edson• Medicine Hat• Camrose
ALEX HEINTZSenior Associate
DON ROBINSONAssociate
KYLE BARTKUSAssociate
Q2 2017