Archives from June 2013

Calgary's appetite for industrial space will soon be sated by about 120,000 square feet of Class A property hitting the market.

Construction recently started on the NorthWing Business Park in the city's northeast end. Hungerford Properties, based in Vancouver, is the developer.

Michael Hungerford, a partner in the family business, said the project is tapping into demand from industrial clients seeking to avoid high lease rates by owning their own facilities but also looking to do without the expense of stand-alone buildings.

"It's more and more difficult for businesses to own their own freestanding buildings, and there's a shortage, so providing condominium ownership is a response to that by sharing buildings with other owners, sharing facilities and organizing that way," he said.

Michael Massing, a senior associate with Collier's International that's arranging sales of units in the NorthWing park, said drivers behind the demand includes rising lease rates in Calgary that are now as much as $14 per square foot for these types of buildings, a shortage of land, high construction costs and the opportunity created by low interest rates.

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Calgary, June 10, 2013 " In Calgary's burgeoning Northeast neighborhood, on a high-visibility site fronting McKnight Boulevard and Metis Trail, the new NorthWing Business Park has just started construction. The site is one of two industrial strata projects in the city to offer spaces of 10,000 to 40,000 square feet and a rare chance for businesses to own, rather than lease, their own property.

"There is nothing like it currently available in the city," says Michael Massing, Senior Associate of Industrial Sales and Leasing for Colliers International in Calgary. "There are very few of these larger, industrial condos. It's a new concept in Calgary and it's in high demand. Many entrepreneurs and business owners want to own their real estate and create equity at a comparable cost to leasing." 

NorthWing offers these larger units, but smaller bays as well, all set on 7.41 acres "“ zoned and ready to go. Sizes range from 2,200 to 82,000 square feet. "We're meeting a need in the market," says Michael Hungerford, of Hungerford Properties, the Vancouver-based developers behind the project. "With low interest rates and a limited supply of quality industrial product, this will make owning appealing for Calgary's small business owners."

Amrit Jaidka is president of Northeast Wholesale, a small distributor and supplier of general merchandise to pharmacies, hardware stores and dollar stores across Canada.  After 15 years of renting in Calgary, the company decided to buy a warehouse space at NorthWing because it is a great time to buy and a smarter business move for the long term.

"We wanted something brand new and there aren't many big buildings like this for sale anywhere in the city," says Mr. Jaidka. "Most buildings like this are old and in the city centre but we don’t have to or want to be there. We want to be close but not in the city centre with easy access. NorthWing offers this for us."

Developed by Hungerford Properties, the NorthWing Business Park is part of the up and coming Northeast neighborhood. Next to the key transportation routes of Metis Trail and McKnight Blvd with close access to Deerfoot Trail. NorthWing is also part of an emerging neighbourhood where large players such as Walmart, the Calgary Police and Shaw and ATB have their headquarters.

Thoughtfully designed for function and flexibility, the units offer oversized doors, generous loading areas and ample parking, allowing owners to combine multiple units and construct mezzanines. NorthWing buildings are Class A commercial space built with structural steel framing, insulated concrete walls, high-efficiency glass, sprinklers throughout, optimum natural light and LEED-grade T5 lighting.

Click here to read the full press release.

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