Calgary
Total Stock (million sq. ft.)
133.0
Vacancy Rate
5.6%
Availability Rate
7.0%
NNN Lease Rate
C$7.34
Net Absorption (million sq. ft.)
1.9
133.0
Vacancy Rate
5.6%
Availability Rate
7.0%
NNN Lease Rate
C$7.34
Net Absorption (million sq. ft.)
1.9
Metro Area Population
1.5 million
Unemployment Rate
8.2%
Annual Salary - Warehouse
C$52,000
% of Pop - Associate Degree and Below
21.3%
% of Pop - Bachelor's Degree and Above
34.8%
1.5 million
Unemployment Rate
8.2%
Annual Salary - Warehouse
C$52,000
% of Pop - Associate Degree and Below
21.3%
% of Pop - Bachelor's Degree and Above
34.8%
Airport
Calgary International Airport
Total Cargo (millions of U.S. tons)
0.15
Seaport
N/A
TEU Volume - 2017 (millions)
N/A
Major Highways
Hwy 1, Hwy 2
Number of Intermodal Rail Hubs
1
Number of Class I Rail Lines
2
What is the term of a typical lease?
5 years
How is the rent quoted?
Net annual
What is the tenant's option for termination or break?
Typically, the tenant does not have the right to terminate the lease.
Does the tenant have the option to renew? What is the length of the typical option?
Yes, options to renew are common, usually 5 years.
How is the rent determined at renewal?
Typically, rents are determined by market rent at renewal and are generally negotiated 6 to 9 months in advance of lease expiration.
What is the typical rent-free period, if any?
Usually 3-4 months on a 5 year lease.
What is the typical rent escalation?
Annual rent bump of 1%-2%, on average.
Does the tenant have the right to sublet?
Typically to a related/subsidiary company. Otherwise, sublets require the landlord’s written approval.
5 years
How is the rent quoted?
Net annual
What is the tenant's option for termination or break?
Typically, the tenant does not have the right to terminate the lease.
Does the tenant have the option to renew? What is the length of the typical option?
Yes, options to renew are common, usually 5 years.
How is the rent determined at renewal?
Typically, rents are determined by market rent at renewal and are generally negotiated 6 to 9 months in advance of lease expiration.
What is the typical rent-free period, if any?
Usually 3-4 months on a 5 year lease.
What is the typical rent escalation?
Annual rent bump of 1%-2%, on average.
Does the tenant have the right to sublet?
Typically to a related/subsidiary company. Otherwise, sublets require the landlord’s written approval.
What is the unit of measurement of a typical lease?
Per sq. ft. per year
Does the leasable area include the common area?
Yes
Per sq. ft. per year
Does the leasable area include the common area?
Yes
What is the average rent for a warehouse greater than 50K sq. ft.?
C$6.50 per sq. ft. per year
What is the average rent for a manufacturing facility greater than 50K sq. ft.?
C$7.50 per sq. ft. per year
Is there a rent review during the lease?
No
What are the average service charges (OPEX)?
C$2.00-4.00 per sq. ft. per year
Who is responsible for the service charges?
Tenant
What are the average taxes paid on the lease?
C$1.25 - $2.50 per sq. ft. per year
Who is responsible for the property taxes?
Tenant
Who is responsible for the utilities?
Tenant
Who is responsible for the fit-out costs, if any?
Landlord
(Sometimes split between tenant/landlord)
What is the typical security deposit?
2 months’ rent, case by case basis depending on scope of landlord work within the deal and tenant covenant. To be applied to first month rent, with remainder to be held as security throughout the term.
How is car/truck parking paid?
Usually included in rent
Any other occupancy costs?
City of Calgary business taxes (only applicable for next 2 years)
C$6.50 per sq. ft. per year
What is the average rent for a manufacturing facility greater than 50K sq. ft.?
C$7.50 per sq. ft. per year
Is there a rent review during the lease?
No
What are the average service charges (OPEX)?
C$2.00-4.00 per sq. ft. per year
Who is responsible for the service charges?
Tenant
What are the average taxes paid on the lease?
C$1.25 - $2.50 per sq. ft. per year
Who is responsible for the property taxes?
Tenant
Who is responsible for the utilities?
Tenant
Who is responsible for the fit-out costs, if any?
Landlord
(Sometimes split between tenant/landlord)
What is the typical security deposit?
2 months’ rent, case by case basis depending on scope of landlord work within the deal and tenant covenant. To be applied to first month rent, with remainder to be held as security throughout the term.
How is car/truck parking paid?
Usually included in rent
Any other occupancy costs?
City of Calgary business taxes (only applicable for next 2 years)
What are typical agency fees? Who pays them?
5% of net lease value (years 1-5) and 2.5% of net lease value (years 6-10) paid by landlord
Who is responsible for legal fees?
Each party is responsible for their own legal fees.
Any other transaction costs?
Goods and Service Tax (5.00%) payable on lease costs by tenant
5% of net lease value (years 1-5) and 2.5% of net lease value (years 6-10) paid by landlord
Who is responsible for legal fees?
Each party is responsible for their own legal fees.
Any other transaction costs?
Goods and Service Tax (5.00%) payable on lease costs by tenant
What is the typical land tenure?
Leasehold with varying tenures
What is the terminology of the purchase agreement?
Purchase & Sale Agreement
What is the average cost?
C$165 per sq. ft. (average sale price)
What is the agency fee and who pays?
3%-6% paid by seller
What is the typical LTV?
75%-80%
What is the average borrowing rate?
4%-5%
What is the mode of payment?
Typically, agency fees are paid on closing of the transaction. In some cases, 1/2 of the fee is paid upon signing of the PSA, and the other 1/2 paid on closing.
What are the average transaction (closing) costs?
Legal and title fees only, no transfer tax in Alberta
Leasehold with varying tenures
What is the terminology of the purchase agreement?
Purchase & Sale Agreement
What is the average cost?
C$165 per sq. ft. (average sale price)
What is the agency fee and who pays?
3%-6% paid by seller
What is the typical LTV?
75%-80%
What is the average borrowing rate?
4%-5%
What is the mode of payment?
Typically, agency fees are paid on closing of the transaction. In some cases, 1/2 of the fee is paid upon signing of the PSA, and the other 1/2 paid on closing.
What are the average transaction (closing) costs?
Legal and title fees only, no transfer tax in Alberta
What is the average clear ceiling height?
28' - 32'
Average number of dock doors?
40 - 100
Typical column spacing?
55' x 40'
Average parking ratio?
0.50 - 0.90 / 1,000 sq. ft.
Sprinkler system?
ESFR sprinkler system
What is the typical power supply?
2,000 amps, 347/600 volt, 3 phase
28' - 32'
Average number of dock doors?
40 - 100
Typical column spacing?
55' x 40'
Average parking ratio?
0.50 - 0.90 / 1,000 sq. ft.
Sprinkler system?
ESFR sprinkler system
What is the typical power supply?
2,000 amps, 347/600 volt, 3 phase
CBRE Americas Industrial & Logistics Occupier Guide