Owner User Building Prices Back on the Rise in NE and Central Calgary Industrial Markets

Aug 20, 2010 by

Well the numbers are in and as we suspected with a declining number of buildings available in the market for sale and the increased demand we are seeing a slight increase in sale prices per square foot. Overall the Calgary Industrial market saw a $2.91 increase for average price per square foot with $137,456,168 in buildings selling with a combined square footage of 1,009,394. This resulted in an average price of $136.00 at month end July 2010 versus $133.27 at year end 2009. Although not a huge increase on the average it is none the less an increase from the dregs of the downturn of 2009.

The interesting phenomenon was the NE and Central Calgary Industrial markets saw more dramatic increases. The average price per square foot sale in the NE went from $112.50 in December 2009 to $129.89 at mid year 2010. The single greatest change in the area being sale in the 50,000 to 100,000 square foot size range where there were no sales in 2009 there have been 2 year to date at an average price of $135.32 per square foot. The Central market faired just as well with pricing now at $169.81 we saw 2009 sales at $152.51 per square foot. The largest increase in this segment being in the 15,000 to 30,000 square foot size range where we saw a building transact at $163.71 versus the average in that category at year end 2009 being $90.58.

The SE Calgary Industrial market hasn’t faired as well in the last 6 months. At year end 2009 we saw average prices at $145.58 while the numbers at July 2010 indicate an average sale price of $136.13. The greatest drops were in the 8,001 to 15,000 and 15,001 to 30,000 square foot size ranges. The prior seeing pricing going from $248.69 in 2009 to $137.63 in July 2010 and the latter seeing pricing at $164.51 in July 2009 going to $137.56 year to date.

So what does it all mean? Should you sell, should you buy? Well it all depends on your size range and the geographic location. Keep in mind there have not been a huge number of transactions in that 24 of the 1,797 buildings or 1.34% of the total buildings have changed hands at land titles and officially sold. What it does mean is that pricing is not falling like it did between 2008 and 2009. Overall average pricing in 2008 for Calgary Industrial buildings was $153.37 while at year end 2009 they were $133.27 for a 13.1% decline. So maybe we have hit the bottom. At least in the NE and Central markets. Stay tuned for another update as we head into the busiest time of year for the Calgary Industrial market. There are a number of major transactions pending which will make some significant impacts on these numbers from a positive perspective.

Get Proof РContact Advent Commercial Single Use Building Sales Report РJuly 2010

So what is my building worth? Email sid@calgaryindustrialrealestate.com to find out?