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2.2.6 Okotoks Economic Development Strategic Plan (2018 Update)

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2.2.6 Okotoks Economic Development Strategic Plan (2018 Update) TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY May 2021 Project Preface MXD Development Strategists Ltd. The resulting Commercial Development MXD Development Strategists Ltd. do not (“MXD”) of Richmond, British Columbia, Analysis document highlights seven warrant that any estimates contained within was commissioned by the Town of opportunity areas for immediate and the study will be achieved, but that they Okotoks (“the Client”) in December 2020 medium-term commercial and industrial have been prepared conscientiously on to prepare a Commercial and Industrial development that balances market, the basis of information obtained during Growth Study. Work was completed economic and planning considerations. the course of this market analysis. between December 2020 and May 2021. Three recommended priority projects are identified within these opportunity areas. Reference material used for this report The purpose of this assignment was to was derived from the project team, as well assess, identify and define the potential The figures presented in the report are as from the public and private sectors and development opportunities for commercial based on an evaluation of the current government publications. This information and industrial development in Okotoks general level of the economy in the local was supplemented by MXD’s experience in from a real estate, economic and planning and regional market, and neither take urban planning and real estate development. perspective. The second key objective into account, nor make provisions for was to identify immediate and medium- the effect of any sharp rise or decline in term opportunities for commercial and local or general economic conditions. industrial development in Okotoks and the optimal mix and positioning of land uses for these areas for opportunity. I TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS TABLE OF CONTENTS EXECUTIVE SUMMARY E1 01 INTRODUCTION AND METHODOLOGY 1 1.1 Project Introduction 2 02 EXISTING CONDITIONS AND POLICY ANALYSIS 3 2.1 Context & Demographics 4 2.2 Policy Analysis 9 2.3 Current Land Use Patterns 19 2.4 Commercial & Industrial Nodes 20 2.5 Area Structure Plans 21 2.6 SWOT Analysis 22 03 STAKEHOLDER CONSULTATION 24 3.1 Introduction 25 3.2 Key Themes and Takeaways 26 04 REAL ESTATE MARKET ANALYSIS 28 II TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL STUDY | MXD DEVELOPMENT STRATEGISTS 4.1 Introduction 29 4.2 Calgary Metro Key Economic Sectors Overview 30 4.3 Real Estate Market Analysis 36 4.4 Office Analysis 43 4.5 Retail Analysis 47 4.6 Hotel Analysis 52 4.7 Overall Development Program and Key Takeaways 55 4.8 Target Economic Sectors 57 05 POSITIONING, ALLOCATION AND PRIORITY AREAS 58 5.1 Introduction 59 5.2 Nine Big Ideas 60 5.3 Positioning and Demand Allocation 61 5.4 Opportunity Areas 62 5.5 Recommended Development Typologies 65 5.6 Priority Areas 67 06 ACTION AND IMPLEMENTATION PLAN 77 6.1 Action and Implementation Plan 78 SOURCES 81 Report Sources 82 III TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL STUDY | MXD DEVELOPMENT STRATEGISTS LIST OF FIGURES Figure 2.1: Okotoks Context to Calgary Metro Region ...............................................................................................................................................................4 Figure 2.2: Okotoks Context to City of Calgary ............................................................................................................................................................................5 Figure 2.3: Population Distribution by Age Cohort (2016) .........................................................................................................................................................6 Figure 2.4: Okotoks Current and Projected Population ..............................................................................................................................................................7 Figure 2.5: Household Tenure (2016) ............................................................................................................................................................................................8 Figure 2.6: Educational Attainment and Unemployment (2016) ...............................................................................................................................................8 Figure 2.7: Policies Relevant to the Okotoks Commercial & Industrial Study ........................................................................................................................9 Figure 2.8: Jurisdiction of the SSRP showing Cities, Towns, Counties and Municipal Districts ........................................................................................10 Figure 2.9: Boundaries and municipalities part of the Calgary Metro Region ......................................................................................................................11 Figure 2.10: Boundaries of the Intermunicipal Development Plan including Gateway Areas ............................................................................................12 Figure 2.11: Future land-use map of Okotoks ...........................................................................................................................................................................13 Figure 2.12: Study Area of the Downtown Okotoks Urban Design Master Plan ...................................................................................................................16 Figure 2.13: Strategic Directions of the Okotoks Strategic Plan .............................................................................................................................................17 Figure 2.14: Town of Okotoks Districts .......................................................................................................................................................................................19 Figure 2.15: Primary Commercial and Industrial Nodes in Okotoks ......................................................................................................................................20 Figure 2.16: Area Structure Plans in the Town of Okotoks ......................................................................................................................................................21 Figure 4.1: Key Economic Sectors Under Consideration .........................................................................................................................................................30 Figure 4.2: Under Construction Inventory (SF) by Submarket, Q4 2020 ...............................................................................................................................36 Figure 4.3: Net Industrial Absorption by Submarket, 2020 .....................................................................................................................................................36 Figure 4.4: Quarterly Okotoks Industrial Vacancy Rate, 2016-2021 YTD ...............................................................................................................................38 Figure 4.5: Quarterly Okotoks Industrial Net Absorption (SF), 2015-2020 ...........................................................................................................................38 Figure 4.6: Quarterly Okotoks Industrial Vacancy Cap Rate, 2015-2020 ...............................................................................................................................39 Figure 4.7: Southbank Business District ....................................................................................................................................................................................40 Figure 4.8: Existing Okotoks Industrial Supply Map .................................................................................................................................................................41 Figure 4.9: Annual Calgary Suburban Office Net Absorption and Deliveries (SF), 2016-2020 ...........................................................................................43 Figure 4.10: Quarterly Okotoks Office Vacancy Rate, 2015-2020 ............................................................................................................................................45 Figure 4.11: Calgary Retail Inventory by Submarket as Percent of Total Inventory ...........................................................................................................47 Figure 4.12: Vacant Retail Inventory by Submarket as Percent of Total Vacant Inventory ...............................................................................................47 Figure 4.13: Okotoks Retail Quarterly Vacancy Rate, 2015-2020 ............................................................................................................................................48 Figure 4.14: Okotoks Quarterly Retail Deliveries (SF), 2015-2020 .........................................................................................................................................48 Figure 4.15: Okotoks Retail Quarterly YOY Rental Growth Rate, 2015-2020 .........................................................................................................................49 Figure 4.16: Existing Okotoks Retail Supply Map .....................................................................................................................................................................50
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