As we’re just past the half-way point for 2017, we thought a market update was in order. Instead of focusing on vacancy or absorption rates, we decided to highlight the free-standing industrial properties that have sold year-to-date in Leduc / Nisku. While headlines might suggest that market is under duress, the sales data indicates there’s still a healthy amount of activity. In total, there have been 11 sales amounting to over $33 million in transaction value.
4103 65A Ave – Leduc: 10,000 sq ft on 1.33 acres. $2,500,000 ($250 / sq ft).
7403 36 St – Leduc: 22,000 sq ft on 2.56 acres. $4,600,000 ($209.09 / sq ft).
6800 39 St – Leduc: 8,760 sq ft on 1.23 acres. $2,685,000 ($306.50 / sq ft).
6703 41 St – Leduc: 24,126 sq ft on 5.39 acres. $5,700,000 ($236.25 / sq ft).
503 19 Ave – Nisku: 13,400 sq ft on 2.87 acres. $1,500,000 ($111.94 / sq ft).
1309 10 St – Nisku: 10,000 sq ft on 4.57 acres. $3,200,000 ($320 / sq ft).
706 19 Ave – Nisku: 12,300 on 2.52 acres. $2,200,000 ($178.87 / sq ft).
506 23A Ave – Nisku: 8,364 sq ft on 1.11 acres. $1,950,000 ($233.14 / sq ft).
1104 17 Ave – Nisku: 40,244 sq ft on 3.01 acres. $3,350,000 ($83.24 / sq ft).
1000 15 Ave – Nisku: 12,300 sq ft on 4.52 acres. $2,900,000 ($235.77 / sq ft).
1202 8A St – Nisku: 20,520 sq ft on 1.28 acres. $2,500,000 ($121.83 / sq ft).
There is a wide range in prices, with one building selling at $83 / sq ft and another selling at $320 / sq ft. A number of factors influence this variance, including age / quality of the building, location, site coverage, cranes and power availability. Accordingly, buyers and sellers need to ensure they’re comparing a subject property to actual comparables. For example, a newly constructed concrete building with cranes and heavy power will be valued much differently than an older warehouse with a small land component.
With interest rates having just risen 25 basis points, it will be interesting to see how this affects sales for the second half of the year. Oil prices are still under pressure and have been floating sub $50 / barrel for the better part of the past three months. In the next week or so we’ll provide an update on free-standing industrial buildings that have sold in Edmonton.
The Network – Real Estate Intelligence
There may have been sales in the first two quarters of 2017 that have not been reported yet. There is typically a delay from closing until all the transaction details can be collected. Information has been obtained by sources deemed reliable but is not warranted to be so. View our full disclaimer here.
Chad GriffithsPartner, SIOR, CCIM
Chad is a partner with NAI Commercial Real Estate and focuses on the Greater Edmonton area. Chad entered the industry in 2004 and has completed over 400 commercial transactions with clients ranging from small, local companies to large institutional owners. Chad has been a top 15 producer with NAI Canada-wide since 2013.
Ryan BrownPartner, BCom, SIOR
Ryan is a partner with NAI Commercial Real Estate in Edmonton and is currently ranked nationally as one of NAI's top advisors. Having executed in excess of $100 Million worth of sales transactions and over 2 Million square feet of lease transactions, Ryan has developed a firm understanding of asset evaluation and an aptitude for building design, functionality, and long-term practicality.
Darcie is a licensed Commercial Real Estate Agent in the Province of Alberta with a focus on the Edmonton market and its surrounding areas. Darcie accomplishes custom solutions for her clients through her personable nature and results driven attitude. Darcie can help if you are looking to invest in commercial real estate or are looking for representation for a sale or lease transactions.
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