INDUSTRIAL MARKET SURVEY RED DEER 2013 - … · mike garcelon, aaci, p.app., mrics tyler hansen,...

SODERQUIST APPRAISALS LTD | RED DEER

405, 4901 - 48 Street

Red Deer, AB T4N 6M4

Ph.: 403 346 5533

Fax: 403 347 7730

soderquist.ca [email protected]

Prepared by:

MIKE GARCELON, AACI, P.App., MRICS

TYLER HANSEN, B.Comm., CAPM

GORDON CHAN, BA

INDUSTRIAL MARKET SURVEY | RED DEER 2013

WE VALUE WHAT YOU VALUE COMMERCIAL • INDUSTRIAL • AGRICULTURAL • MULTI-FAMILY • RESIDENTIAL

Soderquist Appraisals Ltd. 2013 Red Deer Industrial Market Survey


About The Study

The industrial sector is a significant portion of the Red Deer economy and therefore the economic

conditions in the industrial sector are reflective of the overall state and condition of Red Deer’s

economy.

In developing this report we identified and studied fourteen industrial districts in and adjacent to

the City of Red Deer. We did not include any government owned industrial properties because

these are typically owner occupied and therefore do not compete in the open market.

The occupancy status of each industrial property was determined by visual drive-by inspections in

July 2013. The 2011 and 2012 data are based on visual drive-by inspections completed in July

2011 and July 2012, respectively.

Previously reported July 2011 and July 2012 vacancy rates have been revised due to the

identification of errors in building size data within the study area resulting is slightly different

vacancy figures than previously reported. The revised July 2011 vacancy rate is 3.70%, previously

reported at 3.57%. The revised July 2012 vacancy rate is 3.44%, previously reported at 3.33%.

Qualification

Readers of this report are welcome to use and reproduce the information contained herein, either

in whole or in part, provided that Soderquist Appraisals Ltd is quoted as the reference source.

This report is based on data obtained from sources believed to be reliable, however its accuracy

cannot be guaranteed. Soderquist Appraisals Ltd. makes no representations or warranties, express

or implied, in this regard. All information contained in this report is provided as of the date of this

report and is provided in good faith but without any legal responsibility of Soderquist Appraisals

Ltd. in any way. Nothing in this report constitutes investment or other advice. Readers of this

report are advised to conduct their own due diligence in this regard before making any investment

decision. Soderquist Appraisals Ltd. and its affiliates shall not be responsible for any liability

whatsoever for any loss arising from any use of this report or the information contained herein.

Soderquist Appraisals Ltd is a full service real estate appraisal and consulting firm providing

valuation and consulting services on virtually every real estate property type. Located in Red Deer,

Alberta we provide our services throughout western and northern Canada. For more information

about Soderquist Appraisals Ltd please visit our web site at www.soderquist.ca.

http://www.soderquist.ca/



Recognition

Soderquist Appraisals Ltd. acknowledges the assistance of Red Deer County, the City of Red Deer,

Century 21 Advantage Commercial Real Estate, and Salomons Commercial in developing this

study.



Red Deer Industrial Market

The Red Deer Industrial Market includes fourteen (14) distinct industrial districts, plus one

additional category for those stand-alone industrial properties outside of established industrial

neighborhoods.

The overall industrial vacancy rate is 3.10% as of July 2013.

Since July 2012 the industrial vacancy rate has dropped 34 basis points from 3.44%.

In July 2013 there was 389,174 sq. ft. of vacant industrial space, which is 7.06% less than July 2012 when there was 418,747 sq. ft. of vacant industrial space.

Net Absorption for the 12 months ending July 2013 is 415,895 sq. ft.

2011 2012 2013 Trend (y/y)

Total Inventory (sq. ft.) 11,778,672 12,157,947 12,544,269 386,322 ↑

Vacant (sq. ft.) 435,650 418,747 389,174 -29,573 ↓

Vacancy Rate 3.70% 3.44% 3.10% -34 bps ↓

*Net Absorprtion (sq. ft.) n/a 396,178 415,895 19,717 ↑

*Net Absorption: Is the increase or decrease in the quantity of occupied space.

2012 2011

District Inventory (sq. ft.) Vacant (sq. ft.) Vacancy Rate Vacancy Rate Vacancy Rate

52nd Avenue Industrial 294,472 4,490 1.52% 1.97% 3.01%

Belich Industrial Park 311,322 4,480 1.44% 1.44% 1.39%

Blindman Industrial Park 534,466 0 0.00% 1.75% 3.76%

Burnt Lake Industrial Park 1,257,913 57,165 4.54% 4.54% 3.30%

Chiles Industrial Park 291,905 9,608 3.29% 12.94% 8.22%

Clearview Industrial Park 589,191 2,577 0.44% 1.16% 2.59%

Edgar Industrial Park 2,643,640 17,580 0.66% 1.70% 4.35%

Golden West/Johnstone Ind. 1,613,508 71,264 4.42% 3.53% 3.95%

McKenzie Industrial Business Park 235,631 46,800 19.86% n/a n/a

Northlands Industrial Park 1,476,199 70,734 4.79% 8.95% 5.50%

Petrolia Business Park 283,872 34,576 12.18% 3.23% 0.00%

Piper Creek Business Park 33,390 10,040 30.07% 46.84% n/a

Riverside Heavy Industrial 1,208,149 0 0.00% 0.14% 0.00%

Riverside Light Industrial 917,145 59,860 6.53% 4.35% 4.09%

"Other" Industrial Parks 853,466 0 0.00% 0.00% 5.02%

TOTAL 12,544,269 389,174 3 .10% 3.44% 3.70%

2013



District Analysis

52nd Avenue Industrial District

The 52nd Avenue Industrial district is situated northwest of the Gaetz (50th) Avenue / 67th Street

intersection. It is bounded on the west by the Glendale residential neighborhood, on the south

by 67th Street, on the east by the Gaetz (50th) Avenue commercial strip, and on the north by the

Normandeau residential neighborhood. Some landmark developments include Quinn Pumps and

United Valve.

Belich Business Park

The Belich Business Park is adjacent to the west boundary of the City of Red Deer, and is at the

south west corner of the Highway 2 / Highway 11 interchange. It is bounded on the west and

south by Red Deer County agricultural and country residential lands, on the east by Highway 2,

and on the north by Highway 11. Some landmark developments include Victory Rig Equipment

and Line-X Coatings.

2011 2012 2013 Trend (y/y)

Total Inventory (sq. ft.) 290,950 290,950 294,472 3,522 ↑

Vacant (sq. ft.) 8,770 5,738 4,490 -1,248 ↓

Vacancy Rate 3.01% 1.97% 1.52% -45bps ↓

2011 2012 2013 Trend (y/y)

Total Inventory (sq. ft.) 311,322 311,322 311,322 - →

Vacant (sq. ft.) 4,330 4,480 4,480 - →

Vacancy Rate 1.39% 1.44% 1.44% - →



Blindman Industrial Park

The Blindman Industrial Park is in Red Deer County and is situated adjacent to the north boundary

of the City of Red Deer. It is bounded on the west by Highway 2A, on the south by the Chiles

Industrial Park, and on the east and north by Red Deer County agricultural and country residential

lands. Some landmark developments include Universal Handling Equipment and Leyen

Enterprises Corp.

Burnt Lake Business Park

The Burnt Lake Business Park straddles the City of Red Deer and Red Deer County boundary, and

is situated along the west side of Highway 2 near the north west corner of the City of Red Deer. It

is bounded on the west by Red Deer County agricultural and country residential lands, on the south

by Highway 11, on the east by Highway 2, and on the north by the Queens Business Park. Some

landmark developments include Strongco and UFA.

2011 2012 2013 Trend (y/y)


Vacant (sq. ft.) 19,874 9,230 0 -9,230 ↓

Vacancy Rate 3.76% 1.75% 0.00% -175bps ↓

2011 2012 2013 Trend (y/y)

Total Inventory (sq. ft.) 1,144,343 1,257,913 1,257,913 - →

Vacant (sq. ft.) 37,735 57,165 57,165 - →

Vacancy Rate 3.30% 4.54% 4.54% - →



Chiles Industrial Park

The Chiles Industrial Park is situated on the north side of the City of Red Deer. It is bounded on

the west by Highway 2A, on the south by the allowance for the future extension of Highway 11A,

on the east by the Red Deer River, and on the north by the Blindman Industrial Park. Some

landmark developments include Chiles Sandblasting and Stor-Mor Mini Warehousing.

Clearview Industrial Park

The Clearview Industrial Park is situated adjacent to the south boundary of the City of Red Deer.

It is bounded on the west by 40th Avenue, on the south by the McKenzie Industrial Park, on the

east by Red Deer County agricultural and country residential lands, and on the north by the City of

Red Deer Waste Management Facility. Some landmark developments include In-Land Concrete

and Peak Energy Services.

2011 2012 2013 Trend (y/y)

Total Inventory (sq. ft.) 291,905 291,905 291,905 0 →

Vacant (sq. ft.) 23,994 37,760 9,608 -28,152 ↓

Vacancy Rate 8.22% 12.94% 3.29% -964 bps ↓

2011 2012 2013 Trend (y/y)


Vacant (sq. ft.) 14,850 6,847 2,577 -4,270 ↓

Vacancy Rate 2.59% 1.16% 0.44% -72 bps ↓



Edgar Industrial Park

The Edgar Industrial Park is situated toward the north west corner of the City of Red Deer. It is

bounded on the west by Highway 2, on the south by 67th Street, on the east by Johnstone Drive,

and on the north by Highway 11A. Some landmark developments include Finning and Permolex.

Golden West / Johnstone Industrial Park

The Golden West / Johnstone Industrial Park is situated in the north west area of the City of Red

Deer and straddles 67th Street. It is bounded on the west by Johnstone Drive, on the south by the

Oriole Park residential neighborhood, on the east by the Glendale residential neighborhood, and

on the north by the Johnstone residential neighborhood. Some landmark developments include

Border Paving and Bruins Plumbing.

2011 2012 2013 Trend (y/y)

Total Inventory (sq. ft.) 2,539,829 2,539,829 2,643,640 103,811 ↑

Vacant (sq. ft.) 110,526 43,243 17,580 -25,663 ↓

Vacancy Rate 4.35% 1.70% 0.66% -104 bps ↓

2011 2012 2013 Trend (y/y)

Total Inventory (sq. ft.) 1,480,011 1,613,508 1,613,508 0 →

Vacant (sq. ft.) 58,447 56,936 71,264 14,328 ↑

Vacancy Rate 3.95% 3.53% 4.42% 89 bps ↑



McKenzie Industrial Business Park

The McKenzie Industrial Business Park is situated in Red Deer County just south of the city and

east of Gasoline Alley. It is bounded on the west by 40th Avenue, on the south by McKenzie Road,

and on the north by Clearview Industrial Park. Some landmark developments include

Schlumberger, and the Red Deer Shooting Club.

Northlands Industrial Park

The Northlands Industrial Park is situated towards the north side of the City of Red Deer. It is

bounded on the west by the Gaetz (50th) Avenue commercial strip, on the south by the Pines

residential neighborhood, on the east by Riverside Heavy industrial area, and on the north by the

allowance for the future Highway 11A extension. Some landmark developments include Home

Building Centre and Habitat For Humanity.

2011 2012 2013 Trend (y/y)

Total Inventory (sq. ft.) n/a n/a 235,631 n/a

Vacant (sq. ft.) n/a n/a 46,800 n/a

Vacancy Rate n/a n/a 19.86% n/a

2011 2012 2013 Trend (y/y)


Vacant (sq. ft.) 79,738 132,126 70,734 -61,392 ↓

Vacancy Rate 5.50% 8.95% 4.79% -416 bps ↓



Petrolia Business Park

The Petrolia Business Park is situated on the east side of the Gasoline Alley district, which is just

south of the City of Red Deer. It is bounded on the west by the Highway 2 commercial corridor,

on the south and east by the Red Deer County agricultural and country residential lands, and on

the north by Spruce Street. Some landmark developments include BWS Fabrication Inc., and Fortis

Alberta Inc.

Piper Creek Business Park

The Piper Creek Business Park is situated on the east side of the Gasoline Alley district, which is

just south of the City of Red Deer. It is bounded on the west by the Petrolia Business Park and the

Highway 2 commercial corridor, on the east by Piper Creek, on the south by Red Deer County

agricultural and country residential lands, and on the north by Spruce Street.

2011 2012 2013 Trend (y/y)


Vacant (sq. ft.) 0 7,957 34,576 26,619 ↑

Vacancy Rate 0.00% 3.23% 12.18% 895 bps ↑

2011 2012 2013 Trend (y/y)

Total Inventory (sq. ft.) n/a 33,390 33,390 0 →

Vacant (sq. ft.) n/a 15,640 10,040 -5,600 ↓

Vacancy Rate n/a 46.84% 30.07% -1,677 bps ↓



Riverside Heavy Industrial Park

The Riverside Heavy Industrial Park is situated toward the north west corner of the City of Red

Deer. It is bounded on the west by the Northlands Industrial Park, on the south by municipal

environmental reserves, on the east by the Red Deer River, and on the north by the allowance for

the future Highway 11A extension. Some landmark developments include Olymel and Quinn

Pumps.

Riverside Light Industrial Park

The Riverside Light Industrial Park is centrally located within the City of Red Deer. It is bounded

on the west and north by municipal environmental reserves, and on the south and east by the Red

Deer River. Some landmark developments include Waste Management of Canada and Red Deer

Co-op Home and Garden Centre.

2011 2012 2013 Trend (y/y)


Vacant (sq. ft.) 0 1,696 0 -1,696 ↓

Vacancy Rate 0.00% 0.14% 0.00% -14 bps ↓

2011 2012 2013 Trend (y/y)


Vacant (sq. ft.) 37,496 39,929 59,860 19,931 ↑

Vacancy Rate 4.09% 4.35% 6.53% 217 bps ↑



“Other” Industrial Areas

This category includes those industrial developments and industrial zoned land which are outside

of the established industrial neighborhoods. Some examples include Crimtech Services Ltd. in

Gasoline Alley, and Key Agventures Inc. near the intersection of Highway 11 and Highway 2.

2011 2012 2013 Trend (y/y)

Total Inventory (sq. ft.) 800,407 853,466 853,466 - →

Vacant (sq. ft.) 40,190 0 0 - →

Vacancy Rate 5.02% 0.00% 0.00% - →

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INDUSTRIAL MARKET SURVEY RED DEER 2013 - … · mike garcelon, aaci, p.app., mrics tyler hansen,...

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