Calgary Industrial Real Estate One of Top Performing North American Real Estate Markets

Jan 21, 2012 by

We knew that Calgary Industrial Real Estate had experienced a good year but much to our surprise the Calgary Industrial market has performed at or close to the top of all its peers in North America.  A recent article by Cushman & Wakefield in the Calgary Herald indicated that vacancy had dropped below 5.0 percent to finish the 2011 year at 4.7%. 

Much of the activity and absorption that occurred in the market continued to be driven by the manufacturing sector and particularly those manufacturers supplying equipment and materials to the oil & gas industry.  A recent article in the Vancouver Sun reported on a recent report by the Brookings Institution that Calgary was ranked the top Canadian manufacturing city (51st overall in world metropolitan economies) with gross domestic product per capita of $54,080 U.S..  Edmonton was second among Canadian cities with GDP per capita of $43,934 U.S.  Clearly an indicator that oil & gas manufacturing and refining drove both economies.

Locally there were indicators that the oil & gas industry continued to drive the economy.  A speculation on our part (see previous article) that Surefire Industries had purchased the former Enerflex facility at 4700 47th Street SE turned out to be true.  They paid $38,000,000 for the 328,000 square foot facility or $115.85 per square foot.   Surefire Industries and their related companies have experienced phenomenal growth and now occupies in excess of 410,000 square feet of high end fabrication shops in the Calgary marketplace.

Other active companies were Enerflow Industries with their acquisition of 6016 90th Avenue SE and Sanjel with their rumoured purchases of buildings at the former Monarch Siding facility at 4390 106th Avenue SE which is currently listed by Colliers  and the final piece of the entire city block that Sanjel now owns at 4326 110th Avenue SE.