Q2 2021 CALGARY INDUSTRIAL REAL ESTATE MARKET OVERVIEW
Q2 2021 Q2 2021 VACANCY 1.15% QUARTERLY ABSORPTION FROM Q1 2021 4.98% (6.13%) +3,056,261 OVERALL Q2 RATE SQUARE FEET
algary’s industrial real estate market We noted 70 sales transactions during Q2 NEW CONSTRUCTION showed high levels of sales and leasing 2021, with the condo market being the most • 1,356,319 sq. ft. completed Cactivity in all sectors throughout the active sector with 35 condo sales. The next in Q2 second quarter of 2021. The demand for large active segment was owner-user transactions (includes Lowe’s 1.2M Sq.ft.) warehousing in the GCA has helped lead with 32 sales. There were three investment to 3,056,261 sq. ft. of positive absorption, sales this quarter, which matched the number • 1,863,580 sq. ft. under which takes the market total year-to-date of investment transactions that occurred in construction as of Q2 absorption to 5,093,714 sq. ft. This increase in Q1 2021. Although demand is strong, the low positive absorption has helped drive vacancy number of transactions is the result of limited LEASE TRANSACTIONS down to 4.98%, which is a 1.15% decrease supply. from Q1 2021. In just one quarter, we have Industrial zoned land has been more active on • 135 Lease Transactions witnessed over a full percentage point drop a sales basis this year than it has been in the • 3,882,724 sq. ft. Leased in our vacancy rate. As demand for industrial last three years. As interest rates remain low, product increases, specifically large bay format and post-Covid demand has been strong, the warehouses and single-use facilities with number of purchasers has increased, which in INVESTMENT SALES yard, supply is quickly diminishing. In order for turn has resulted in a limited supply of owner- tenants and purchasers to secure their desired user properties with yard. This has correlated • 3 Investment Sales facilities, they have been required to act fast to increased demand for available land. • $24,450,000 Sales Volume in their decision-making. • 195,716 sq. ft. Sold • $125 per sq. ft. Avg. Price Quarterly Vacancy & Absorp�on (2014 - 2021) 3,500,000 9.00% CONDO SALES 3,000,000 8.00% • 35 Condo Sales 2,500,000 7.00% • $30,675,374 Sales Volume
2,000,000 6.00% • 157,143 sq. ft. Sold
1,500,000 5.00% • $195 per sq. ft. Avg. Price 1,000,000 4.00% OWNER/USER SALES 500,000 3.00% • 32 Owner/User Sales 0 2.00% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 • $132,910,640 Sales Volume -500,000 2014 2015 2016 2017 2018 2019 2020 2021 1.00% • 966,661 sq. ft. Sold
-1,000,000 0.00% • $138 per sq. ft. Avg. Price
Absorp�on (Sq. Ft.) Vacancy
Barclay Street Real Estate Ltd. 117, 4950-106th Avenue SE, Calgary, AB www.barclaystreet.com CALGARY INDUSTRIAL STATS BY AREA
02L N
03W
T
S
E NW
R T ST
N E
14 C 02K
144 AV NW 144 AV NW
STONEY 4 03H
03C 02B 03D
02C NOLAN HILL NORTHEAST SAGE HILL EVANSTON
02A REDSTONE COVENTRY HILLS 03I CALGARY YOUNG 5.88% OFFENDER CENTRE
NW
NW D SHERWOOD 02E 02F
R COVENTRY HILLS ST
E STONEY 1 CENTRE SKYVIEW
G 85
D
I RANCH
R CALGARY STONEGATE Y Y REMAND CENTRE Vacancy
CK KINCORA COUNTRY LANDING
BOW RIVER N RO HILLS VILLAGE O COUNTRY HILLS S CORRECTIONAL CALGARY E TOWN CENTRE C CENTRE CORRECTIONAL CENTRE R E PANORAMA E NORTHPOINTE COUNTRY HILLS BV NE K COUNTRY HILLS BV NE BEACON HILL HILLS CENTRE ROYAL OAK CENTRE
ROYAL VISTA HARVEST 2,693,953 SF W HILLS
N LAKE ROCKY HIDDEN VALLEY R HAMPTONS N HARVEST T V HIDDEN RIDGE B E VA LLEY S HILLS E LAKE STONEY 2 ILL CITADEL RC H 03S T STONEY SA S COUNTRY E Vacancy SF V R 3 ROYAL OAK HILLS A H
E
N
T
S
6 MACEWAN SANDSTONE 3 SADDLE RIDGE VALLEY GLEN W COUNTRY HILLS ES EDGEMONT T AURORA NW VILLAGE NO SE C RE BUSINESS PARK ARBOUR DR E NW K 45,803,737 L LAKE L
RD HI E PA SSENGER E E ARBOUR TERMINAL E OS B LAKE N E
UL DD IN BEDDINGTOGT N HEIGHTS CALGARY CO O BEDDINGTON N SQUARE
MI MI HAWKWOOD BEDDINGTON B INTERNATIONAL Total Inventory V CO-OP CENTRE CROWFOOT N Saddletown 03V VE PLAZA E CROWFOOT EL BEDDINGTON BV NE AIRPORT 80 AV NE VILLAGE CARGO
TW TERMINAL TUSCANY Crowfoot SADDLERIDGE INDUSTRIAL GENESIS 01F WELLNESS RANCHLANDS CENTRE
SCENIC
NE
ACRES E Martindale
N 01G BV
T E
S
6
HUNTINGTON HILLS DG I 3 MARTINDALE
NR TARADALE O
W C
N DEERFOOT L
R FA D NOSE HILL PARK BUSINESS McKnight LL I 64 AV NW 64 AV NE H Westwinds DALHOUSIE CENTRE
E
S
O N CASTLERIDGE LAYCOCK DALHOUSIE PA RK DEERFOOT CORAL SILVER STATION OUTLET MALL SPRINGS
E CALGARY WEST SPRINGS N SOCCER CENTRE Dalhousie NORTH PRAIRIE WINDS T NE CENTRAL S 05B THORNCLIFFE PA RK 01B HAVEN 8 ST
6
BOWMONT FALCONRIDGE CORAL
UPPER 11 PA RK SKYLINE SKYLINE SPRINGS WESTWINDS LAKE NORTHLAND WEST EAST VILLAGE BOWNESS PARK McKNIGHT VILLAGE SHOPPES CASTLERIDGE SHOPPING CENTRE VALLEY RIDGE PLAZA VARSITY NORTH
N BRENTWOOD CALGARY T 3.68% HAVEN GREENVIEW
WINTER CLUB S PEGASUS
E
R
T
N
E WHITEHORN
HIGHWOOD C 01H HORIZON GREENWOOD/ BO W GREENVIEW R TEMPLE I VE R E Vacancy CALAWAY GREENBRIAR Brentwood MONTEREY Whitehorn N PA RK INDUSTRIAL McCALL
CRESTMONT HIGHLAND T
NORTH E
BRENTWOOD S PARK
N
VILLAGE PARK PARK 2
BOWNESS 5 MARKET MALL CAMBRIAN CALGARY WEST McCALL AIRWAYS ST
MALL
01C CAMPGROUND CHARLES- QUEEN'S PARK SPRING GARDENS 8
HEIGHTS LAKE 6 WOOD QUEENSCEMETE RYPARK TRANSIT DEPOT 01D COLLINGWOOD VILLAGE V NE V NE CANMORE 32 AV NE 32 A 32 A University PA RK 01I CANADA 05C OLYMPIC 01E PETER PA RK LOUGHEED 1,071,914 SF SPITAL SOUTH HO VILLAGE
E UNIVERSITY OF CALGARY ROSE- SQUARE N 06B MONTGOMERY MOUNT LEISURE MONT AIRWAYS T Rundle S CENTRE CONFEDERATION PLEASANT RUNDLE
6 BANFF PA RK 3 E SUNRIDGESUNRIDGE N PINERIDGE ALBERTA FOOTHILLS TRAIL NO MALL T S S CHILDREN'S ATHLETIC E
2 Vacancy SF PA RK C R HOSPITAL 5 Banff E SHOULDICE E VISTA UNIVERSITY Trail TUXEDO WINSTON HEIGHTS/ K COUGAR RIDGE PA RK McMAHON HEIGHTS HEIGHTS STADIUM PARK MOUNTVIEW CAPITOL HILL MONTEREY Lions SQUARE FOOTHILLS NORTH HILL
SOUTHERN N Park PATTERSON HOSPITAL SHOPPING CENTRE ALBERTA TRANS INSTITUTE OF ST FRANKLIN TECHNOLOGY CANADA
WEST RE MAYLAND MALL ROSEDALE T 29,093,943 ST. ANDREWS HOUNSFIELD HEIGHTS/ CRESCENT
N MARLBOROUGH SPRINGS BRIAR HILL SAIT/ACAD/Jubilee HEIGHTS HEIGHTS HEIGCE HTS PA CIFIC EDWORTHY ALBERTA COLLEGE RENFREW PLACE ABBEYDALE OF ART & DESIGN PA RK MALL Marlborough POINT WILDWOOD RILEY PARK MARLBOROUGH MCKAY PARKDALE PARK SW SUNNYSIDE Total Inventory COACH T MERIDIAN
S WEST Sunnyside TELUS SPARK HILL PRINCE'S ISLAND NORTHGATE
5 THE NEW MARLBOROUGH VILLAGE 8 PA RK HILLHURST SCIENCE CENTRE MALL EAU CLAIRE MALL LOWERY HILLHURST E GARDENS ER BO V W N
RI RI W EAU VE 06A BO R MAYLAND
ST
CLAIRE HA Bridgeland RRY 8 MARKETCHINATOWN HAYS BRIDGELAND/ Downtown BUILDING 6 / Memorial FOREST HEIGHTS E STRATHCONA RIVERSIDE N 10A West - Kerby DOWNTOWN C STRATHCONA O SQUARE N T BOW V RIVER Station E ST Zoo Franklin S SHOPPING SPRUCE C N . PA COMMERCIAL COREE T TR PARK ICK 2 N I ' O S Barlow / CENTRE T 5 R N ISLA E ND CLIFF BUS MILLENIUM PENBROOKE DOWNTOMEWAWNTA FORT ZOO Max Bell DEPOT PARK C A I ARMOURIES Z CITY P CALGARY
A DOWNTOWN DEANE E
M L
/ WEST END HA
Y P LL MEADOWS S
G L HOUSE Sunalta L ST. GEORGE'S MU O E
ASPEN EAST VILLAGE T N S B ISLAND
Shaganappi A C E ALGARY O S U ALBERT RO W M VICTORIA PARK ROSS- TOWER WOODS 6
LT TRANSIT DEPOT APPLEWOOD WESTGATE Point SUNALTA PARK/ 3 CARROCK WESTBROOK Victoria 9 EST AV PARK MALL NA S RADISSON Park / R E PEARCE W E SHAGANAPPI ARBO V BELTLINE RI ESTATE HEIGHTS SU W FOREST Sirocco Stampede O CHRISTIE B L RED CARPET 45 St SW E 69 St SW Westbrook SC SCARBORO INGLEWOOD 17 AV SW PARK LAWN 17 AV SE 17 AV SE LOWER FOREST LAWN W MISSION CALGARY SHOPPING S MOUNT ROYAL ELLISTON BANK- TA LISMAN EXHIBITION CENTRE T LAKE SOUTHEAST SPRINGBANK SPORTS CENTRE & S GLENDALE OW RAMSAY
VIEW F STAMPEDE SOUTHVIEW OPTIMIST FOREST LAWN HILL 69 ATHLETIC UPPER PA RK KILLARNEY/ IF PA RK MOUNT ROYAL Erlton / INDUSTRIAL GLENGARRY CL NGAL Stampede
RICHMOND BU
UNION E EL BOW S RIVER CEMETERY
SOUTH INGLEWOOD T S
CHINOOK BIRD SIGNAL COLLEGE 2
CALGARY ROX- 5 HILL RIDEAU SANCTUARY 4.06% GLENBROOK BORO PARK 10C ERLTON ALYTH/ RUTLAND BONNYBROOK SIGNAL HILL CENTRE RICHMOND PARK ELBOW PARK SQUARE Vacancy DOVER ERIN 10B CFB 39 Avenue - CURRIE RIVER WOODS PA RK ALTADORE R E PARK- V I R STANLEY W HILL O PARK HIGHFIELD B L WESTHILLS E TOWNE CENTRE GLAMORGAN MOUNT ROYA L BRITANNIA GOLDEN DISCOVERY RIDGE UNIVERSITY ELBOYA TRIANGLE EASTFIELD 2,509,507 SF LINCOLN SANDY VALLEYFIELD PARK BEACH 09D GLENMORE ATHLETIC PA RK MANCHESTER WINDSOR PARK CFB NORTH Vacancy SF BURNS 09H - LINCOLN GLENMORE PARK PMQ PARK INDUSTRIAL MANCHESTER BEL-AIRE CHINOOK BEAVER LAKEVIEW SHOPPING INDUSTRIAL DAM CENTRE FLATS O STARFIELD E IMAX L MEADOW- B G B MAYFAIR Chinook O O W D W R I E R LARK PARK VE 09K I N
E 61,778,481 V R E
R R S D OGDEN
WEASELHEAD T S S
FLATS
ROCKYVIEW FAIRVIEW E FOOTHILLS 2 E E
SHOPS 5 HOSPITAL GLENDEER INDUSTRIAL HERITAGE GL NORTH GLENMORE DG KELVIN TOWNE PA RK BUSINESSCENTRE RI EA OGDEN Total Inventory GROVE MANCHESTER PARK BOAT KINGSLAND INDUSTRIAL DOCK
HERITAGE PA RK CHINOOK FAIRVIEW GREAT PLAINS DEERFOEASTOT PARK MEADOWS BOAT GLENMORE RESERVOIR DOCK HERITAGE DR SW HERITAGE DR SE FAIRVIEW SO Heritage UT H GL EN INDUSTRIAL RIVERBEND MO RE SHOPPING PA RK BOAT CENTRE SOUTH DOCK GLENMORE SECTION 23 LANDING FOOTHILLS HAYSBORO CARBURN 09N PA RK Riverbend 90 AV BASWYVIEW ACADIA AL AN T C RIC DIST N MACLEOD IO AT PLAZA IG R SOUTHLAND E IR
PUMP N S
CROSSING R TE S T HILL E SE W S
MACLEOD 8
MALL SE
6 ST PALLISER
ST OUTSIDE CITY LIMITS
Southland 24 OAKRIDGE SOUTHLAND DR SE
SOUTHLAND 52 LEISURE CENTRE 12A
SOUTHLAND DR SW MAPLE SE SHEPARD RIDGE ST
INDUSTRIAL 84 WILLOW WILLOW PA RK PARK SW VILLAGE 8.10% SOUTHWOOD Anderson ST BRAESIDE CEDARBRAE 24 ANDERSON SOUTHCENTRE TRANSIT DEPOT TSUU THE T'INA FAMILY 114 AV SE 114 AV SE MUSEUM LEISURE Vacancy CENTRE
DIAMOND BONA- EAST SHEPARD WOODBINE COVE WOODLANDS VISTA INDUSTRIAL B DOWNS O LAKE W
AVENIDA R BONAVISTA IV E CANYON SHOPPING R DOUGLASDALE / GLEN CENTRE LAKE CA MEADOWS 1,359,571 SF N YON BONAVISTA 12B Canyon M E Meadows
A SE D QUEENSLAND OW ST S D LAKE R 52 Vacancy SF S W BONAVENTURE FISH CREEK DEER PROVINCIAL SOUTH VA LLEY TRAIL SE CROSSING WS DR MALL PARK
EADO M YON K AN EE C CR FISH FISH CREEK DEER FISH CREEK PROVINCIAL PARK Fish Creek PROVINCIAL RIDGE 16,778,196 SHAWNEE SLOPES - Lacombe PARK 13B MCKENZIE PARKLAND DEER RUN TOWNE NEW BRIGHTON Total Inventory MILLRISE 12C
EVERGREEN
E
S
MIDNAPORE
T
MALL LAKE S
MIDNAPORE 2 Shawnessy 5 13A 13C 13D LAKE COPPERFIELD MIDNAPORE McKENZIE THE MCKENZIE BOULEVARD LAKE
162 AV SW SHAWNESSY CREEK SHAWNESSY SUN VALLEY BV SE FISH
VILLAGE
SHAWNESSY SHOPPES OF CORNER BRIDLEWOOD SOUTH CALGARY SHAWNESSY HEALTH CENTRE THE CENTRE SUNDANCE 13E 13F SHOPPES LAKE BRIDLEWOOD AT SUNDANCE SHAWNESSY
SOUTH POINTE LAKE Somerset- SIKOME 13G Bridlewood SOMERSET MAHOGANY
13I 13H ABURN BAY
SPRUCE MEADOWS
SILVERADO LAKE CHAPPARAL
CHAPARRAL 12J
SETON 194 AV SE
B
O
W
R
I V
E
R
S 12F12H T 14U
S
G
N
I
K
FF WALDEN I CRANSTON
ER
SH 14V
P IN E C R E LEGACY E K 12I LEASING & ABSORPTION
There was a total of 1,356,319 sq. ft. of construction completed sector remains in high demand, which has continued to add to during the quarter and it is significant to note that Lowe’s the high levels of leasing activity. Canada’s distribution center in Balzac made up 1,200,000 sq. ft. of that. Another notable development that was completed this Barclay Street’s Industrial team expects the momentum in both quarter was Beedie’s ‘A’ class condo building complex referred the leasing and sales markets to continue into the next quarter, to as “Apex at Eastlake”. The second building comprised of given the strong consistent demand within the marketplace. 91,869 sq. ft., which fronts onto 52nd Street SE, finalizes the We expect to see additional positive absorption throughout the development of the two-building industrial complex for a total of back half of the year, as there is a lack of construction slated 187,708 sq. ft. to be completed in the third quarter. As demand increases and supply continues to decrease, we expect landlords to hold net The Leasing market remained strong throughout the quarter with rents stable or even apply upward pressure, especially since we 135 lease transactions. There was a total of 3,882,724 sq. ft. of are shifting to a Landlord’s/Owner’s market. We foresee this industrial product leased, which is an increase of 2,278,403 sq. trend continuing for the remainder of the year and into 2022. ft. compared to Q2 2020. The ‘big-box’ distribution and logistics
Q2 TRANSACTIONS GREATER THAN 100,000 SQ.FT. MARKET SNAPSHOT Location Tenant Size (Sq.Ft.) Overall vacancy dropped High Plains Lowes Canada Ltd. 1,200,000 1.15% from Q1 to Q2 High Plains Conagra Brands Canada 240,800 2021. Crosspointe (Building 1) Confidential eCommerce 224,073 Strong demand within Stonegate (Building B) Walmart Canada 159,022 the distribution & logistics 5805 - 51st Street SE Xtreme Packaging 145,841 sector. Stonegate (Building B) Spartan Controls Ltd. 138,626 Highest levels of demand Crosspointe (Building 2) Groupe Robert Inc. 126,907 for industrial land in the TOTAL SQUARE FEET 2,235,269 past three years.
TOTAL MARKET INVENTORY: 153,454,357 SQUARE FEET TOTAL AVAILABLE INVENTORY: 12,313,496 SQUARE FEET
Size Range 0 - 10,000 sq.ft. 10,001 - 30,000 sq.ft. 30,001 - 60,000 sq.ft. 60,001 - 100,000 sq.ft. 100,000+ sq.ft.
# of Listings 609 313 187 68 21 20 TOTAL LISTINGS
Availability includes vacant space, occupied space being marketed, and speculative space under construction. Some listings are counted in multiple size ranges if they can be demised. NOTABLE TEAM LISTINGS
FOR SALE 285149 Frontier Rd. SE, Calgary FOR SALE 5796 - 40th Street SE, Calgary 16,149 Sq. Ft. on 6.04 Acres 38,634 Sq. Ft. on 3.30 Acres
NOTABLE TEAM TRANSACTIONS
LEASED RENEWAL
7850 - 66th Street SE, Unit, 121, Calgary 7928 & 7944 - 10th Street NE, Calgary 10,972 Sq. Ft. 51,528 Sq. Ft.
LEASED SOLD
8655 - 36th Street NE, Bays 110 - 120, Calgary 6285 - 76th Avenue SE, Calgary 30,592 Sq. Ft. 54,661 Sq. Ft. on 3.68 Acres
JON MOOK 403-616-5239 DARCY PAYNE 403-371-5545 [email protected] [email protected]
HOUSTON PETERSON 403-808-7932 EMILY GOODMAN 403-862-4348 [email protected] [email protected]
This Short Financial Analysis (“SFA”) does not purport to be all inclusive or to contain all the information that the prospective purchaser may require in deciding whether or not to purchase the Property. This SFA provides selective in- formation relating to certain physical, locational and financial characteristics of the property. The information on which this SFA is based has been obtained from various sources considered reliable. Barclay Street real Estate Ltd. makes no representations, declarations or warranties, express or implied, as to the accuracy or completeness of the information or statements contained herein or otherwise and such information or statements should not be relied upon by prospective purchasers without independent investigation and verification.