Large Industrial Portfolio of Buildings for Sale

Jul 6, 2010 by

According to the article in the Globe & Mail this portfolio, owned by ING is having an impact on the rest of the industrial market.  Not sure that I agree that it is having a negative impact.  This is a major portfolio and includes both new and old buildings in the Calgary market as well as other markets across the country.     The ING portfolio has buildings in it that are at the low end of the scale rent wise such as 4216 61st Avenue SE at $4.25 to $4.50 while it’s newer buildings which were recently completed in Great Plains on a joint venture with Opus Building Corp are at $7.00 making this portfolio hard to analyse.  Where is the market going?  In Calgary the assets are underperforming the market if you look strictly at vacancy rates.  As always the sophisticated investors are buying income and some of these underperforming assets with a little attention will become well performing assets.  I believe you will see a major pension fund or US Reit purchase this portfolio and then sell the under performing assets.  This will be create opportunities for the entrepreneurial investor in Calgary Industrial market. 

Globe and Mail Article published July 5th, 2010