With the continued slowdown of the economy and ongoing contraction of the labor force you’ll see a rise in vacancy in both retail and office. But despite this, certain industries are still doing well like healthcare, utility, auto repair shops, daycares are just some of the few.

A few developers still plan to break ground on some new retail projects. But there won’t be many, you might be able to count them on two hands. Never the less, prime locations are still hard to find.

Lease rates on those prime locations have not changed much, but with vacancy rates rising and with more inventory to chose from there will be a growing pressure for landlords to adjust their rates to stay competitive.

Office vacancy rates are also starting to climb as companies start to downsize. Not surprisingly, as a lot of the major projects from the oil and gas industries are put on hold. In effect, you’ll see a rise in available sub-lease spaces with better lease rates. And yet medical professional buildings are maintaining their vacancy fairly well as considered by many is the most promising sector in the commercial real estate right now.

See the entire Market Report.

• Great exposure to Stony Plain Road
• Second floor office spaces
• 2894 square feet available with private entrance (space maybe divisible)
• 1003 square feet of shared office space or rent out the individual offices for $500-600/month all inclusive
• Measurements to be confirmed

LEASE RATE:                 $10.00/SF
OPERATING COSTS:     $7.04/SF

For more information please contact RE/MAX Commercial agent, David Luong at (780) 429-1200 ext. 224

Edmonton Research Park Incubators
The Edmonton Research Park incubators include the Advanced Technology Centre (ATC), the Research Centre One (RC1) and Biotechnology Business Development Centre (BBDC). The Advanced Technology Centre serves a first-stage business incubator for start-up companies, including month-to-month leases and shared services. The Biotechnology Business Development Centre offers affordable office and wet-lab spaces. The Research Centre One also offers affordable office and wet-lab spaces for lease.
Number of companies: 40 (ATC 28, RC1 8, BBDC 4)
Size: ATC – 43,279 sq. ft.
RC1 – 41,027 sq. ft.
BBDC – 67,358 sq. ft.
Number of staff employed by tenants in the 3 facilities: 333

TEC Centre
TEC Edmonton operates the TEC Centre, an incubation facility located in the heart of downtown Edmonton, on the fourth floor of Enterprise Square. The TEC Centre offers flexible lab and office lease space for tenants to conduct their business and develop their technologies. Benefiting from being in a cross-disciplinary environment, the tenants may access TEC Edmonton expertise and programs such as TEC Source Advisory Panel, Alberta Deal Generator, and the TEC Executives in-Residence.
Number of companies: 22
Size: 46,000 sq. ft.
Sectors: life sciences, ICT, nanotechnology, agriculture
Number of staff employed by
tenants: 80

NINT Innovation Centre
Located on the fourth floor of the National Institute for Nanotechnology (NINT) on the University of Alberta campus, the NINT Innovation Centre has 15 units of office and wet or dry laboratory space for companies with a nanotechnology aspect to their business. It can also provide access to scientific and engineering expertise and world-class equipment and facilities on a fee-for-service or other collaborative model.
Number of companies: 9
Size: 16,000 sq. ft.
Sectors: nanotechnology
Number of staff employed by tenants: 29
Resources include: meeting rooms, close relationship to NRC Industrial Research Assistant Program

novaNAIT
novaNAIT has two incubator facilities – abrand new centre in St. Albert and the Duncan McNeill Centre for Innovation (DMCI) on its main Campus. novaNAIT also works with the NAIT Shell Manufacturing Centre (SMC). The DMCI incubation facility has eleven suites available for early stage companies and entrepreneurs. The suites vary in size from one-person suites to four-person suites depending on the needs of tenants. The St. Albert facility now triples novaNAIT’s incubation capacity. The Shell Manufacturing Centre houses nine labs with $4.4 million of new equipment and $5.6 million of new software and facilities that include an Advanced Hydraulics & Pneumatics lab, two Mechanical Computer Assisted Design labs, and a Computer Integrated Manufacturing lab.
Number of companies: 5
Size: 13,369 sq. ft. in two facilities
Number of staff employed by tenants: 13

Northern Alberta Business Incubator (NABI)
NABI operates two incubation facilities in St. Albert and provides a full spectrum of services. From programs and business coaching, office space and meeting room rentals, to reception, video conferencing and office technology services.
Number of companies: 55 clients (45 businesses in incubation facilities and 10 virtual clients)
Size: 41,000 sq. ft.
Number of staff employed by tenants: 146

TEC Edmonton – March 18, 2009

What started out as a planning exercise in 2007 to see how the region’s business service providers could collaborate to support entrepreneurs, evolved into a regional alliance strategy as TEC Edmonton, the Northern Alberta Business Incubator (NABI) and novaNAIT identified areas where early-stage entrepreneurs needed coordinated assistance.

This sparked the Regional Alliance’s discussion with other incubators namely Edmonton Economic Development Corporation (EEDC) and the National Institute for Nanotechnology (NINT) to work together on developing a consensus on how to coordinate business incubation services.

“As business accelerators we’re all acutely aware that to gain credibility, early-stage business needs a home,” says David Cox, CEO of TEC Edmonton. “At the TEC Centre we receive inquiries for space and sometimes we are not the best fit for that entrepreneur, that’s why facility collaboration is so important. The last thing we want to do is turn an entrepreneur away, and now we shouldn’t have to.”

Through a Memorandum of Understanding, the five incubators have agreed to work efficiently to utilize limited local incubator resources by leveraging each other’s expertise, services and programs to achieve efficiencies and economies of scale.

“Each incubator within this Regional Alliance has specific strengths and offerings,” says Stuart Cullum, Executive Director, novaNAIT. “As entrepreneurs grow their businesses they will require a broad array of support services and this MOU lays a framework for connecting all of the services available within the region.”

The incubators agree to coordinate their lease application process so that tenants don’t have to shop around. They will not compete with each other on rental rates; rather the goal is to match the entrepreneur with the ‘best fit’ – the incubator that has the most appropriate value-added services that will help that business grow.

“NABI is really a Business Development Network,” says Dar Schwanbeck, NABI’s Managing Director. “We want to be a part of developing and diversifying our region’s business community collectively utilizing our space, expertise, resources, and connections to make that happen.”

Developing Alberta’s entrepreneurial capacity and our ability to commercialize technology developed locally is key step in Alberta’s Action Plan: Bringing Technology to Market previously announced by Alberta Advanced Education and Technology.The Regional Alliance is dedicated to doing our part, by guiding entrepreneurs through Edmonton’s innovation ecosystem.

Edmonton, Alberta. The Regional Alliance officially celebrated its 1st Milestone with the signing of a Memorandum of Understanding amongst five local business incubators.

What started out as a planning exercise in 2007 to see how the region’s business service providers could collaborate to support entrepreneurs, evolved into a regional alliance strategy as TEC Edmonton, the Northern Alberta Business Incubator (NABI) and novaNAIT identified areas where early-stage entrepreneurs needed coordinated assistance.

This sparked the Regional Alliance’s discussion with other incubators namely Edmonton Economic Development Corporation (EEDC) and the National Institute for Nanotechnology (NINT) to work together on developing a consensus on how to coordinate business incubation services.

“As business accelerators we’re all acutely aware that to gain credibility, early-stage business needs a home,” says David Cox, CEO of TEC Edmonton. “At the TEC Centre we receive inquiries for space and sometimes we are not the best fit for that entrepreneur, that’s why facility collaboration is so important. The last thing we want to do is turn an entrepreneur away, and now we shouldn’t have to.”

Through a Memorandum of Understanding, the five incubators have agreed to work efficiently to utilize limited local incubator resources by leveraging each other’s expertise, services and programs to achieve efficiencies and economies of scale.

“Each incubator within this Regional Alliance has specific strengths and offerings,” says Stuart Cullum, Executive Director, novaNAIT. “As entrepreneurs grow their businesses they will require a broad array of support services and this MOU lays a framework for connecting all of the services available within the region.”

The incubators agree to coordinate their lease application process so that tenants don’t have to shop around. They will not compete with each other on rental rates; rather the goal is to match the entrepreneur with the ‘best fit’ – the incubator that has the most appropriate value-added services that will help that business grow.

“NABI is really a Business Development Network,” says Dar Schwanbeck, NABI’s Managing Director. “We want to be a part of developing and diversifying our region’s business community collectively utilizing our space, expertise, resources, and connections to make that happen.”

Developing Alberta’s entrepreneurial capacity and our ability to commercialize technology developed locally is key step in Alberta’s Action Plan: Bringing Technology to Market previously announced by Alberta Advanced Education and Technology.The Regional Alliance is dedicated to doing our part, by guiding entrepreneurs through Edmonton’s innovation ecosystem.

TEC Edmonton – March 18, 2009

I’m happy to announce our latest opportunity at Montrose Commercial in Beaumont, AB. Fully commercial serviced lots adjacent to the future Esso, Tim Hortons, Holiday Inn and more.

Montrose Commercial surpasses the typical suburban commercial development. It offers the perfect business community in the perfect location. Excellent visibility from one of the busiest throughfares, yet is uniquely positioned to avoid rush hour crush, with multiple routes available. An area zoned for Commercial Town Centre District (CTC) and Commercial Business Park (CBP), it is the latest and only commercial development in Beaumont. An ideal investment, situated on the southwest corner of the town, where 60th Street and Nisku Highway (625) intersect. From here Highway 2 and Nisku are only 3 minutes away whilst Edmonton and the International Airport is only 10 minutes away.

Proposed uses could include: Medical Centre, Professional Building, Financial/Banking Institutions, Condo Office Complex, Family Restaurant, Storage Facilities and more.

For further details please see our brochure or contact David Luong at (780) 429-1200 ext. 224.

“When I look down the road, it’s going to be grimmer than I thought it would be for the next year, year-and-a-half. This is going to be an intense downturn,” he told city council Tuesday.

However, Mr. Percy said “there’s no better jurisdiction to be located in than Alberta,” particularly north of Red Deer, because he still expects companies to pump money into oil sands projects as prices improve.

“At the end of the day, so many fundamentals are positive in the case of Alberta, the best strategy is to treat this as short-term.”

Mr. Percy was one of five local experts brought in to give councillors their thoughts on where the economy is heading and what the city should do about it.

The speakers also included ATB Financial senior economist Todd Hirsch, National Bank Financial investment adviser Angus Watt, Melcor Developments Ltd. president Ralph Young and Clark Builders founder Andy Clark.

They suggested falling costs make this a good time for the city to move ahead with infrastructure construction needed as Edmonton continues to grow, especially with interest rates low.

Mr. Clark said his company has 30 projects going on right now, but by the end of the year they only have 10 scheduled.

“I think you’re going to see some pretty hungry builders out there in six months, 12 months more.”

Canwest News Service

“The ability to service customers remotely, to communicate at any time and in many different ways, makes it easier to spread out,” Mr. Mallett says. “In the past, it was only larger companies with branches dotted around the country that could do that effectively.” No more.

Going national is really a question of would, should and could, says Dave Valliere, chair of the entrepreneurship and strategy department, Ted Rogers School of Management at Ryerson University. In other words, think about what you would do, what you should do and what you could do before taking the leap.

“Is this a good idea at all? Why do you want to go from regional to national? What’s the benefit of doing that? Is it to diversify, so if you are selling in Eastern Canada you can tap into Western Canada in case the growth rates are different?” Mr. Valliere says. “There are benefits just in growing because small businesses are fragile and you need to achieve a certain size, particularly in these difficult times, in order to have a robustness to handle a few problems along the way. You should want to grow to improve your odds of survival.”

Whether you should grow or not comes down to whether a national market exists for your product or service. Just because you have a market in your region doesn’t mean it exists across the country. “There are regional differences and in some industries those can be very important,” Mr. Valliere says. “Don’t assume there is a national market. You need to verify that the national market exists.”

Suppose it does: The customers who want what you are selling in British Columbia will also want it in Quebec, and for the same reasons. Then you need to think about whether you have to make any changes to your strategy to satisfy those new customers. “For example, if you are going from the West to the East, you are going to have to make the language changes,” Mr. Valliere says. It doesn’t stop there. Customers in other regions might want to be sold to in a different way. The demographics and tastes may be different. You may need to distribute differently.

“You are going to be up against different competitors, new regional players that you didn’t even know about. And you don’t have a good idea how they are

going to react to you suddenly showing up. Don’t assume what works at home is going to work there too. You are going to have to experiment,” Mr. Valliere says.

Once you’ve found that the national market exists and your strategy can work in other regions, what will it take to execute that strategy? This is the “could” portion of the equation. And it comes down to whether or not you have the ability to sell in these new regions. “Are you selling something online? That’s easy,” Mr. Valliere says. “But maybe you need a physical presence in the new locations. Are you going to get an agent in the new location to sell for you? Are you going to open up a remote sales office? What will it take to sell to those customers and do you have the wherewithal to do that?”

Think infrastructure, operational capabilities, after-sales support, marketing, HR and the scope and structure of your organization.

“In some ways, expanding nationally is a microcosm of expanding internationally,” says Becky Reuber, professor of strategic management, Rotman School of Business. “Get help. If you can do it through existing firms, it’s a good way to get your feet wet.” She offers the example of a company that provides cleaning services to businesses and those businesses have operations in other parts of the country. “That’s one way to expand – through your existing customers that are already national,” Ms. Reuber says.

“Be wary of establishing a physical presence and do it smart if you have to do it at all.”

This means addressing what going national means for your business. Do you need bricks-and mortar outlets dotting the country? What is national? Is Vancouver, Toronto, Montreal national enough for your customers? Do you need to be in all provinces?

“Are you in an industry whereby you have to have a physical presence close to your population versus shipping products to specific regions from a more central location?” says Chris Van Staveren, partner, transaction service, KPMG Enterprise Services. “For example, printing businesses can typically ship/provide services from a central location. Retail businesses on the other hand, will have to be close to their customers.” And that requires skill sets you may not already have. For example, in a retail expansion, you have to develop real estate expertise.

Small business owners going national will also have to understand the different provincial regulations that will affect your business. For example, health and safety rules tend to be provincial. Inter-provincial trade regulations may affect your strategy going forward.

The next challenge: How do I maintain company morale in a down market?

Mary Teresa Bitti – Financial Post

ALBERTA HEARTLAND
Building Area: 25,000 sq.ft.
Site Area: 2 acres
Land Cost: $175,000 – $400,000/acre
Building Cost: $2,750,000 ($110.00/sq.ft.)
Rental Rate: $9.00 – $15.00/sq.ft.
Op. Cost: $2.00/sq.ft.
Business Taxes: N/A
Property Taxes: $1.20/sq.ft.

STRATHCONA/SHERWOOD PARK
Building Area: 25,000 sq.ft.
Site Area: 2 acres
Land Cost: $500,000 – $600,000/acre
Building Cost: $2,750,000 ($110.00/sq.ft.)
Rental Rate: $9.00 – $16.00/sq.ft.
Op. Cost: $2.50/sq.ft.
Business Taxes: N/A
Property Taxes: $1.30/sq.ft.

PARKLAND COUNTY
Building Area: 25,000 sq.ft.
Site Area: 2 acres
Land Cost: $400,000/acre
Building Cost: $2,750,000 ($110.00/sq.ft.)
Rental Rate: $9.00 – $15.00/sq.ft.
Op. Cost: $2.00/sq.ft.
Business Taxes: N/A
Property Taxes: $1.20/sq.ft.

FORT McMURRAY
Building Area: 25,000 sq.ft.
Site Area: 2 acres
Land Cost: $1,000,000 – $2,000,000/acre
Building Cost: $2,750,000 ($110.00/sq.ft.)
Rental Rate: $33.00 – $43.00/sq.ft.
Op. Cost: $3.00/sq.ft.
Business Taxes: N/A
Property Taxes: $1.30/sq.ft.

LEDUC COUNTY/NISKU
Building Area: 25,000 sq.ft.
Site Area: 2 acres
Land Cost: $350,000 – $400,000/acre
Building Cost: $2,750,000 ($110.00/sq.ft.)
Rental Rate: $9.00 – $15.00/sq.ft.
Op. Cost: $2.37/sq.ft.
Business Taxes: N/A
Property Taxes: $1.20/sq.ft.

ST. ALBERT
Building Area: 25,000 sq.ft.
Site Area: 2 acres
Land Cost: $500,000/acre
Building Cost: $2,750,000 ($110.00/sq.ft.)
Rental Rate: $8.00 – $12.00/sq.ft.
Op. Cost: $2.75/sq.ft.
Business Taxes: $0.70/sq.ft.
Property Taxes: $1.30/sq.ft.

NORTHWEST EDMONTON
Building Area: 25,000 sq.ft.
Site Area: 2 acres
Land Cost: $600,000/acre
Building Cost: $2,750,000 ($110.00/sq.ft.)
Rental Rate: $11.00/sq.ft.
Op. Cost: $2.70/sq.ft.
Business Taxes: $0.50/sq.ft.
Property Taxes: $1.25/sq.ft.

NORTHEAST/CENTRAL EDM.
Building Area: 25,000 sq.ft.
Site Area: 2 acres
Land Cost: $450,000 – $500,000/acre
Building Cost: $2,750,000 ($110.00/sq.ft.)
Rental Rate: $14.00/sq.ft.
Op. Cost: $2.75 – $3.00/sq.ft.
Business Taxes: $0.50/sq.ft.
Property Taxes: $1.75/sq.ft.

SOUTHEAST EDMONTON
Building Area: 25,000 sq.ft.
Site Area: 2 acres
Land Cost: $600,000 – $700,000/acre
Building Cost: $2,750,000 ($110.00/sq.ft.)
Rental Rate: $10.00 – $12.00/sq.ft.
Op. Cost: $2.75 – $3.00/sq.ft.
Business Taxes: $0.50/sq.ft.
Property Taxes: $1.75/sq.ft.

To obtain the full report from Colliers you can click here.

POWER CENTRE CRU
Typical Size: 1,200 – 1,500 sq.ft.
“A” Class Rental Rates: $28.00 – $32.00/sq.ft.
“B” Class Rental Rates: $21.00 – $26.00/sq.ft.
“C” Class Rental Rates: $14.00 – $19.00/sq.ft.
Operating Costs: $6.00 – $8.00/sq.ft.
Vacancy: 3.0%

UNANCHORED STRIP CENTRE CRU
Typical Size: 1,200 – 1,500 sq.ft.
“A” Class Rental Rates: $23.00 – $25.00/sq.ft.
“B” Class Rental Rates: $21.00 – $26.00/sq.ft.
“C” Class Rental Rates: $11.00 – $15.00/sq.ft.
Operating Costs: $6.00 – $9.50/sq.ft.
Vacancy: 3.3%

ANCHORED SHOPPING CENTRE CRU
Typical Size: 1,200 – 1,500 sq.ft.
“A” Class Rental Rates: $28.00 – $32.00/sq.ft.
“B” Class Rental Rates: $25.00 – $27.00/sq.ft.
“C” Class Rental Rates: $13.00 – $19.00/sq.ft.
Operating Costs: $7.50 – $11.00/sq.ft.
Vacancy: 3.3%

PAD SITE
Typical Size: 3,000 – 4,500 sq.ft.
Rental Rates: $32.00 – $40.00/sq.ft.
Operating Costs: $6.00 – $11.00/sq.ft.
Vacancy: BTS opportunities rather than
existing vacancies

BIG BOX
Typical Size: 15,000 – 60,000 sq.ft.
Rental Rates: $16.00 – $22.00/sq.ft.
Operating Costs: $6.00 – $8.00/sq.ft.
Vacancy: 2.5%

To obtain the full report from Colliers you can click here.

West End
Rental Rate: $27/sqft
Op. Cost: TBD

149 Street
Rental Rate: $17/sqft
Op. Cost: $9-35/sqft

118 Ave/Kingsway
Rental Rate: $20/sqft
Op. Cost: $12.50/sqft

124 Street
Rental Rate: $22-25/sqft
Op. Cost: $10.85/sqft

Whyte Avenue
Rental Rate: $35/sqft
Op. Cost: $14.64/sqft

Southside
Rental Rate: $26-28/sqft
Op. Cost: $15/sqft

Eastgate
Rental Rate: $24/sqft
Op. Cost: $11.92/sqft

Downtown Government
Rental Rate: $35-40/sqft
Op. Cost: $13.50/sqft

Downtown Financial
Rental Rate: $42-45/sqft
Op. Cost: $16/sqft

To obtain the full report from Colliers you can click here.