Will Merger of Major US Industrial REITS Have an Impact on Calgary Industrial Real Estate?

Feb 4, 2011 by

A recent merger of two of the largest industrial REITS in the USA may indicate a trend coming to Canada.  AMB and Prologisrecently announced their merger to create a real estate trust with $46 Billion in assets.  Read Article  Time will tell though if it will impact the Calgary Industrial Real Estate market.  At present Pro-Logis has properties in the Toronto area and has yet to make its way to Western Canada in any significant way.  In 2007 and 2008 they were actively seeking a development representative here but pulled back plans for expansion into Western Canada when the recession hit.  Similarly AMB presently only has property in the Toronto area as well. 

As the Calgary Industrial market returns to one of stability and strength we will likely see these larger REITS and developers enter our market.  This competition will keep the local incumbents aggressive which is good for all involved in the commercial real estate business.