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Partnership.
Performance.
Edmonton Industrial
OverviewPresented by David St.Cyr
HOT BUTTON ISSUESCONSTRUCTION & PIPELINES
Kailer Yamamoto
Cooper Marody
Ethan BearEvan Bouchard
TROUBLE IN OUR PRIMARY INDUSTRY
• Oil production is expected to exceed export capacity in 2018. • Further reliance on rail exports.• Political uncertainty: Trans Mountain Expansion federally, Enbridge Line 3 in Minnesota.
EXPANSION IN THE GREATER EDMONTON AREA
• Two polypropylene production facilities: combined cost of $7.5 billion and create 200+ jobs.• Infrastructure construction: roadways near EIA, LRT expansion, CN Rail upgrades.
CANNABIS PRODUCTION IN THE GREATER EDMONTON AREA
• 13 AGLC-licensed producers are expected to occupy nearly 2,000,000 SF.• Forecasted to produce over 200,000 kg per year by end-2019 and create 900 jobs.• Aurora Sky: 800,000 SF production facility at Edmonton International Airport.
DISTRIBUTION CENTRES
• 1,000,000 SF Amazon fulfillment centre expected in the Edmonton Area.• 550,000 SF AGLC Distribution Centre completed in St. Albert in May 2018.• 400,000 SF Ford Distribution Centre in Leduc completed in August 2018.
0
50
100
150
200
250
300
350
400
450
500
2010 2011 2012 2013 2014 2015 2016 2017 2018
Active Drilling Rigs in Alberta
Active Rigs
ALBERTA DRILLING ACTIVITY
RAMPART BUSINESS PARK15828 – 142 Street
2014 Oil Price Shock
* Alberta Energy Regulator: Drilling Activity Monthly Statistics
ALBERTA DRILLING ACTIVITY
NORTHPORT BUSINESS PARK129 Avenue & 170 Street
EDMONTON INDUSTRIAL VACANCY RATES
1.22%
1.12%4.23%
4.23%4.0%
3.7%3.2%
3.0%
6.0%
6.8%
6.3%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0%
1%
2%
3%
4%
5%
6%
7%
8%
Northwest Southeast Average
PropertyCITYVIEW BUSINESS PARK6474 – 6484 ROPER ROAD
CITYVIEW BUSINESS PARK6474 – 6484 ROPER ROAD
NORTHPORT BUSINESS PARK
18210 – 109 Avenue
LocationSouth Edmonton South Edmonton West Edmonton South Edmonton
Property TypeMulti-Tenant Multi-Tenant Multi-Tenant Single Tenant
TenantBlue Water Alberta LP Fort McKay Logistics LP
North Country Tire Distributors
KTN Edmonton Co.
LandlordOxford Properties Oxford Properties ONE Properties
Canadian Property Holdings Inc.
Size102,662 SF 101,884 SF 77,215 SF 190,678 SF
CommencementJune 1, 2018 June 1, 2018 August 1, 2018 April 1, 2019
2018 NOTABLE BUILDING LEASE TRANSACTIONS
Property
SUNWAPTA BUSINESS CENTRE
10402 - 184 StreetEdmonton, AB
PARSONS BUSINESS CENTRE
9303/9703 – 28 AvenueEdmonton, AB
16311/16403117 Avenue
Edmonton, AB
915 – 34 AvenueNisku, AB
Site Area / Building Size
22.0 acres / 415,557 sf 9.5 acres / 173,456 sf15.3 acres / 319,841 sf
4.7 acres / 56,000 sf
Sale Price$62,954,000 $25,000,000 $21,600,000 $12,800,000
Unit Value$151 PSF $144 PSF $68 PSF $229 PSF
Sale DateApril 5, 2018 February 16, 2018 April 16, 2018 May 2, 2018
2018 NOTABLE SALE TRANSACTIONS
LAND – Average Price Per Acre
HENDAY BUSINESS PARKYellowhead & 215 Street
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100,000
200,000
300,000
400,000
500,000
600,000
700,000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
AVERAGE LAND PRICE PER ACRESEPTEMBER 1998 – SEPTEMBER 2018
0-5 Acres 5-15 Acres 15+ Acres Total
LAND – Total Acres Sold
SOUTHVIEW BUSINESS PARKPhase 5, Acheson, AB
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200
400
600
800
1,000
1,200
1,400
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
TOTAL ACRES SOLDSEPTEMBER 2018 – SEPTEMBER 2018
0-5 Acres 5-15 Acres 15+ Acres Total Acres
LAND – Number of Transactions
HORIZON BUSINESS PARK184 Street & Anthony Henday
-
50
100
150
200
250
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
NUMBER OF LAND TRANSACTIONSEPTEMBER 1998 – SEPTEMBER 2018
0-5 Acres 5-15 Acres 15+ Acres Total
IN SUMMARY:
Market is continuing to recover with signs of growth.
Drilling activity continuing to increase in 2018.
Land sales volumes are increasing.
Longer term answers needed for pipelines and future investment in resource extraction.
Thank you.
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