Edmonton Real Estate Forum 2007Industrial Market UpdateRod ConnopVice President Industrial Division

For more information , please contact:

Rod Connop, Vice President Industrial Division780.420.1585 ext. 242rod.connop@colliers.com

Richard Matthew, Regional Research Director I Western Canada780.420.1585 ext. 256richard.matthew@colliers.com

0%

1%

2%

3%

4%

5%

6%

7%

'96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 Q1 '07

Edmonton Industrial Vacancy Rate

2.66%2.23%

1.84%

Vacancy Rates by Sector – Q1-2007

2.90%

6.20%

2.26%

3.25%

1.88%

2.56%

1.67%2.19%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

Southside Northwest

200420052006Q1 '07

Industrial Net Absorption – Q1-2007

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

00' 01' 02' 03' 04' 05' 06' Q1 07'

Squa

re F

eet

434,043

Lease Comparables

$7.25 - $8.505,000Southside

$5.25 - $6.2550,000Southside

$6.75 - $8.008,000Northwest

$5.25 - $6.0050,000Northwest

Face Rate (average PSF)

Size (sf)Area

$7.25 - $8.75100,000Southside

$8.50 - $10.0010,000Southside

$6.75 - $8.50100,000Northwest

$7.75 - $9.5010,000Northwest

Face Rate (average PSF)

Size (sf)Area

Existing New

Industrial New Construction – Q1-2007

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

'00 '01 '02 '03 '04 '05 '06 Q1 '07

Squa

re F

eet

166,476

Edmonton Industrial Market Statistics

• Edmonton Industrial Inventory: 80,199,006 Square Feet

• Cap Rates for new industrial product: +/- 6.0%

• Construction costs continue to increase

• Rental rates across the city continue upward momentum

• Small lots becoming increasingly scarce

• 1,200,000 square feet currently under construction

$0

$50

$100

$150

$200

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Dol

lars

(Mill

ion)

0

100

200

300

400

500

600

700

800

900

Acr

es

Value Acres

Edmonton Industrial Land Sales

1,0001,100$300

Edmonton Industrial Land Prices• Edmonton Proper

Fully serviced sites (average) (IM) $270,000 - $450,000 per acre

(IB) $300,000 - $650,000 per acre

(AGI) $95,000 - $150,000 per acre

• Nisku/Leduc

Fully serviced sites (average) $240,000 - $350,000 per acre

• County of Strathcona

Fully serviced sites (average) $275,000 - $375,000 per acre

• Acheson Business Park (Parkland County)

Fully serviced sites (average) $260,000 - $350,000 per acre

Industrial New DevelopmentsNorthwest Industrial Area

• Remington Intermodal Site

• Hopewell Intermodal Site

• Panattoni Development Site

• Giffels/ First National Development

• Sunwapta Industrial Park

• City West Business Park

• Northport Business Park

• Hopewell – Beaverbrook Site

• Golden West Golf Course Site

• Gregg Development Site

Northeast Industrial Area

• Aurum Energy Park

Hopewell –Beaverbrook Site

156th

Stre

et

Yellowhead Hwy

184th

Stre

et

137th Avenue

St. Albert Trail

Golden West Golf Course Site

Gregg Development Site

170th

Stre

etPanattoni Developments

Northport Business Park

128th Avenue

184th

Stre

et 156th

Stre

et

137th Avenue

Hopewell Intermodal Site

Panattoni Developments

Giffels/First National

Development

131st Avenue

118th Avenue

149th

Stre

et

163rd

Stre

et

128th Avenue

Remington Intermodal Site

Giffels/ING

Yellowhead Trail

CN

Inte

rmod

al F

acili

ty

Northport Business Park

170th

Stre

et

Yellowhead Trail

Yellowhead Trail

118th Avenue

111th Avenue

Stony Plain Rd

170th

Stre

et

184th

Stre

et

Ant

hony

Hen

day

Driv

e

Sunwapta Industrial Park

Wal

ton

2+ Year wait for servicing

Walton

WaltonWalton

Walton

WAM -City West

Lands

Win

terb

urn

Roa

d (2

15 S

tree

t)

Walton

City West Business

Park

137th Avenue

Aurum Energy Park

130th Avenue

33rd

Stre

etMer

idia

n St

reet

Sold (Mammoet)

Sold (Kiewit)

Canadian National Railway

Canadian Pacific Railw

ay

Future Interchange (Anthony Henday Drive)

Lockerbie & Hole

CN

Aecon

Industrial New DevelopmentsSouth Industrial Areas

• South Central Business Park

• 50th Street Business Park

• Prospect Business Park

• Commerce South Office Park

• Hopewell Development Site

• Ellerslie Industrial Park

• Gateway Business Park

• Verus Centre

• Trillium Business Park

• Roper Industrial Centre

• Summit Centre

• Oxford CityView Centre

68th Avenue

17th

Stre

et

South Central Business Park

76th Avenue

Whitemud Drive

51st Avenue

75th

Stre

et

Hopewell Development

Commerce South Office

Park

Trillium Business

Park

Oxford CityView Park

Pylypow Industrial

34th

Stre

et

Prospect Park

Verus Centre

50th

Stre

et

50th Street Business Park

Summit Centre

Roper Industrial Centre

QEI

I (Hw

y 2)

Carma Lands(Future Ralph Klein NAIT Campus)

Ellerslie Rd.

CP Rail Intermodal Site

Ellerslie Industrial Park

Gateway Business Park

Future Interchange

Edmonton City Limits

41st Avenue

Anthony Henday Dr.Two hotels are to be constructed, one is a $14-million Gateway

Sheraton hotel “catering to small

business people,” with 154 guest rooms. The second hotel will be $7

million dollars to construct and will target the “leisure

tourist” market with 99 rooms, and may fly the Hampton Inn banner.

QEI

I (Hw

y 2)

Future Interchange

41st Avenue

WAM Development

Site

QEII Business Park

Edmonton City Limits

Proposed Spine Road Re-alignment

Edmonton Industrial Forecast

• Speculative Construction

• Vacancy Rates

• Lease Rates

• Land Prices

• Capitalization Rates

• Challenges

• Escalating Construction Costs!

• Increased Demand, Lack of Supply!

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Thanks for Attending, and have a great year!

Prepared by: Richard Matthew Regional Research Director I Western Canada