2 VACANCY GREATER EDMONTON Greater Edmonton Q4 2010 Q4 2011 - PowerPoint PPT Presentation

Industrial Market Overview April 2012

2 ¨ VACANCY – GREATER EDMONTON Greater Edmonton Q4 2010 Q4 2011 Surrounding Districts – 2.08% 3.9% 3.42% Northwest Edmonton – 4.3% Northeast Edmonton – 1.5% Acheson – 0.7% Southeast Edmonton – 2.6% Leduc / Nisku – 1.2%

3 VACANCY - HISTORICAL RATES Vancancy (%) 5 4.4% 4.5 4.1% 3.9% 4 3.7% 3.4% 3.5 3.2% 2.8% 3 2.5 2 1.4% 1.3% 1.5 1 0.5 0 2003 2004 2005 2006 2007 2008 2009 2010 2011

4 RENTAL RATES INDUSTRIAL AVERAGE NET RENTAL RATES INDUSTRIAL DISTRICT 2011 New Product Northwest Edmonton $8.00 - $10.00 Old Product Northwest Edmonton $6.00 - $8.50 New Product Southeast Edmonton $9.50 - $12.00 Old Product Southeast Edmonton $8.00 - $10.50 Central $8.75 Northeast Edmonton $6.95 Leduc/Nisku $10.00

5 ¨ ABSORPTION INDUSTRIAL ABSORPTION 4,000,000 New ¡Construction 3,490,000 3,500,000 Absorption 2,970,000 3,000,000 2,500,000 2,000,000 1,300,000 1,500,000 1,200,000 1,000,000 980,000 1,000,000 750,000 500,000 103,600 0 2008 2009 2010 2011

6 SALES AVERAGE/SQUARE FOOT INDUSTRIAL SALES AVERAGE PER SQUARE FOOT Information provided by The Network $200.00 $182.48 $179.83 $180.00 $167.72 $161.68 $157.35 $156.55 $155.50 $154.17 $160.00 $134.31 $140.00 $117.43 $109.74 $110.46 $120.00 $103.66 $103.05 Multi-­‑Bay $99.89 $100.00 Single ¡Tenant $80.00 Warehouse ¡(Owner ¡User) $60.00 $40.00 $20.00 $0.00 2007 2008 2009 2010 2011

7 ¨ SALES VOLUME INDUSTRIAL SALES VOLUME Information provided by The Network Sales Volume No. of Transactions 200 $800,000,000 $597,314,941 158 150 $600,000,000 $435,838,156 $462,738,045 $246,430,143 $293,767,075 92 90 100 83 $400,000,000 80 50 $200,000,000 0 $0 2007 2008 2009 2010 2011

8 ¨ CAPITALIZATION RATES INDUSTRIAL CAP RATES 8.20% 8.10% Multi-­‑Bay 8.00% Single ¡Tenant 7.71% 7.80% 7.60% 7.47% 7.37% 7.40% 7.20% 7.06% 7.04% 7.00% 6.80% 6.60% 6.40% 2009 2010 2011

9 LAND SALES TOTAL INDUSTRIAL LAND SALES Information provided by The Network $250,000,000 $228,171,517 $200,000,000 $153,032,304 $150,000,000 $135,121,861 $133,949,424 $100,000,000 $40,086,300 $50,000,000 $0 2007 2008 2009 2010 2011

10 ¨ LAND SALES Greater Edmonton Average ($/Acre) 2010 2011 Northwest Edmonton – $569,888.94 / Acre No. Of Transactions: 31 $553,144 $519,638 Southeast Edmonton – $522,709.94 / Acre No. Of Transactions: 44

11 PINNACLE NORTHWEST NORTHPORT HORIZON FOURELL YELOWHEAD CROSSING

12 NEW DEVELOPMENTS (NW) Pinnacle Business Park Developer: Pinnacle International Total Proposed SF: 65,550 SF Under Construction: 65,550 SF Leased: 6,900 SF Available: 58,650 SF Major Tenants: Accent Marble – 6,900sf

13 NEW DEVELOPMENTS (NW) Horizon Business Park Developer: Hopewell Total Proposed SF: 1,348,841 SF Under Construction: 213,433 SF Available: 213,433 SF

14 NEW DEVELOPMENTS (NW) Yellowhead Crossing II & III Developer: Bentall Total Proposed SF: 347,325 SF Under Construction: 0 SF Leased: 0 SF Available: N/A Major Park Tenants: WESCO – 60,500sf Unisource – 118,800sf

15 NEW DEVELOPMENTS (NW) Northport Business Park Developer: TONKO Total Proposed SF: 327,600 SF Under Construction:176,400 SF Leased:151,200 SF Available:176,400 SF Major Tenants: Acropolis Warehousing Ltd. – 100,800sf Shanahan ’ s Building Products – 50,400sf

16 NEW DEVELOPMENTS (NW) Fourell Business Park Developer: ARTIS REIT Total Proposed SF: 107,937 SF Under Construction:63,756 SF Leased:31,878 SF Available:31,878 SF Major Tenants: F & M Mafco Inc.

17 NEW DEVELOPMENTS (NW) Northwest Business Park Developer: WAM Total Proposed SF: 700,260 SF Under Construction/Built:700,260 SF Leased:161,700 SF Available:538,560 SF Major Tenants: Motovan – 70,400sf Kraus Flooring – 52,800sf Intertek Testing Services – 20,008sf Creative Door Services – 32,000sf Stuart Olson – 30,000sf

18 50 th STREET SOUTH CENTRAL II CITY VIEW CORNERSTONE

19 NEW DEVELOPMENTS (SE) 50 th Street Business Park (G & J) Developer: GPM Total Proposed SF: 168,360 SF Under Construction: 168,360 SF (completed) Leased: 145,000 SF (2011) Available Space: 25,000 SF Major Tenants: Alberta Petroleum Industries – 33,000 SF Special Metals – 28,000 SF Midfield Supply – 26,000 SF

20 NEW DEVELOPMENTS (SE) South Central II Developer: Remington Developments Total Proposed SF: 376,650 SF Under Construction: 124,800 SF Leased: 0 SF Available Space: 124,800 SF(Sept. 2012)

21 NEW DEVELOPMENTS (SE) City View Business Park Developer: Oxford Total Proposed SF: 1,425,394 SF Under Construction/Built: 879,674 SF Leased:784,674 SF Available:95,000 SF Major Tenants: Weatherford – 190,000sf Excel Canada – 125,000sf

22 NEW DEVELOPMENTS (SE) Cornerstone Business Park Developer: Hopewell Total Proposed SF: 868,117 SF Under Construction: 0 SF Available Space: N/A

23 ¨ DISCUSSION Andy Horvath, Partner Industrial Sales & Leasing Cushman & Wakefield Edmonton Andy.Horvath@cwedm.com