New Fulton Industrial Building Designed to Provide a Product in Short Supply

A new industrial building just outside of Calgary’s southeast is being built to target a market that is in short supply but high demand.

Resland Development Group is building a 12,335-square-foot industrial facility on 2.5 acres in the Fulton Industrial Park, located in Rocky View County near Indus.

The building, which will be available by December, is being listed for sale at $3.99 million or for a net lease rate of $16.50 per square foot.

“There are single-use facilities always available in the market but most of the time they’re older buildings with dysfunctional loading or small door sizes or challenged yards,” said Jon Mook, executive vice-president, specializing in industrial leasing and sales with Barclay Street Real Estate, which is marketing the property.

“This building is meeting all the needs of users today, especially those that require a larger yard.  We’ve positioned the building so you can maximize the yard and have more than one access point so you can flow in and out while still maximizing storage area and having large enough doors that can accommodate, in our experience, almost any service company and their equipment or vehicles and ceiling heights that can also address the need for a crane.”

Mook said that a building like this is very hard to find because it has all the attributes of newer construction that older buildings lack.

Fulton Industrial Park is located on Highway 22x, just eight minutes east of the Stoney Trail Ring Road. It has quick and easy access to main roadways in Calgary such as Glenmore Trail and Deerfoot Trail.

The development features 11.5-metre wide paved internal roads with concrete curb and gutter design (no roadside ditches). Lots are rough graded with electricity, gas and fibre optic communication along all internal roads. Storm water discharge is permitted from lots into an underground collection trunk in the roadway.

Because Fulton is located in Rocky View County, there are no business taxes and significantly lower property taxes compared to the City of Calgary as well as no municipal franchise fees added to utilities. Resland Development Group says businesses can save over 50 per cent on operating costs versus a comparable facility in the City of Calgary.

“We set out to offer a functional industrial property of a calibre that you would see in the City, but offer value that could not be replicated in the City,” said Brad Chorley, a partner in Resland. “We spent a lot of time at the front end working with our industrial brokers, designers and directly with a number of owners of industrial businesses to come up with a design that would be highly functional and meet the needs of a wide variety of industrial users.

“A big advantage of the property compared to what you might find in the City is the oversized yard relative to the building. This allows for significant outdoor storage, processes and/or equipment parking. The drive-through bays and dual access points to the yard also offer something unique. There is excellent maneuverability for large vehicles or equipment around the entire property.”

Chorley said the fibre optic connection to the building can meet the data requirements of any business and is a competitive advantage compared to other locations.

“We tried to walk the line of building a product that hit an accessible price point while ensuring the property is of a quality that we would be happy to own and lease it for the long term,” he said.

“The bay lengths were stretched to 116 feet so that large trucks and/or equipment can be parked in tandem in each bay, effectively doubling the amount of equipment that can be kept indoors at one time in these bays.”

A Home Run Location For Fulton Industrial Park In Rocky View County

The Fulton Industrial Park, just outside of Calgary’s southeast city limits, is emerging as an attractive option for medium and large format industrial and commercial businesses looking for land position in the region.           

And more companies are discovering the benefits of the home run location with its close proximity to the City's work force, the regional transportation network and its low operating costs.

“It offers all of the cost advantages of Rocky View County along with excellent proximity to the fastest growing residential areas in Calgary.  It started out targeting medium-size industrial businesses and as southeast Calgary continues to expand the location is well positioned to start competing for larger-format users,” says Brad Chorley, partner with Resland Development Group which is managing the development.

“Resland has been developing land in Alberta for over 30 years. One of the market forces it has focused on since the late 90s is the increasing cost and complexity of operating industrial businesses within Alberta’s major cities. Resland has managed a number of industrial developments in rural counties just outside large cities designed to offer cost competitive options to industrial businesses while maintaining good access to primary markets.”

Lower Costs and Accessible Transportation

Fulton Industrial Park, located in the Indus area just east of the ring road, is fundamentally similar to other industrial parks just outside Calgary and Edmonton city limits - such as: Balzac, Shepard, Conrich, Acheson, Nisku, Leduc, etc.          

These parks offer lower land costs, lower property taxes, no business taxes, no municipal franchise fees on utilities, less municipal bureaucracy and regulation and good access to city and regional transportation.

Fulton has a high standard of infrastructure design, with 11.5-metre wide paved roads, urban road design with curbs and gutters with no roadside ditches, fibre optic communication, and centralized stormwater collection.

Fulton Industrial Park comprises 525 acres with 80 acres already developed. Price per acre starts at $350,000 for developed land with flexible lot sizes ranging from 2.5 acres to 100-plus acre sites.

The park has excellent transportation access to the Ring Road, Glenmore Trail, Highway 1 and Highway 22x and it fronts Highway 22x and the CP Rail Line.

Highway 22x A Busy Corridor

Jon Mook, executive vice president with Barclay Street Real Estate which is marketing the property, says one of the biggest attributes of Fulton Industrial Park is that it is fronting onto the busy Highway 22x.

“It has the most commercial truck traffic of any east/west road coming in or out of Calgary and is second only to highway 2 for commercial traffic in/out of Calgary. It’s easy access into the city,” he says. “Location is a benefit in terms of where it’s situated and at the same time you have substantially lower property taxes and really the value is you’re getting it for half the price of being in the city".  With the completion of the southwest portion of the Calgary Ring Road, Hwy 22x is expected to become an increasingly strategic commercial transportation route.

“Another attribute that the Park has which is becoming increasingly challenging in the city is that it has fibre optic cable running down every road. A lot of the industrial parks in the city say they have fibre but the majority of the time they’re not in front of a site and we’re running into it all the time now where it’s $20,000, $30,000, $50,000 to get fibre into a building because it’s a block away or it’s on the next street.”

There’s a lot of synergies as well to the location as it’s not far from the 84th Street Corridor or the ring road.

“We’re very attractive to those guys who have heavy equipment and don’t want to be tied up on the light issues and the height standards when you get in the city. They can be outside and access in and out of the city via the Ring Road or Deerfoot or Glenmore,” says Mook.

“We also don’t have a building commitment. So if you want to buy land and you need some time before you want to build, in the city there’s very defined building commitments on all the city parks. When you come outside the city, our park does not force your hand. If you want to buy land with a plan to build in two years versus tomorrow or in three, four years, we don’t have a building commitment. If you want to use it as a lay down yard for pipe, you can do that. In the city you cannot.”

 

Calgary and Area Industrial Real Estate Shows Early Signs of Optimism

After grinding through three years of depressed oil markets and the ripple effect on the Alberta economy, the recovery in oil prices since mid-2017 has provided some breathing room for Alberta businesses. While oil price pressure has eased somewhat, there are still headwinds facing industry and capital investment has not returned in full force to the Province.

Despite this, the Calgary region’s industrial real estate market has shown pockets of strength through a tough economic period. While the signs are not yet market wide, there is a growing sense of desire to return to optimism in the face of adversity.

A report by Barclay Street Real Estate says the market experienced about 2.5 million square feet of positive absorption - the change in occupied space - in the first half of the year “with no indication of a significant slowdown in deal velocity.”

The report adds that investor confidence in the Calgary and area market remains strong with inventory growing by 1.2 million square feet in the second quarter with an additional 2.4 million square feet currently under construction and 3.2 million square feet planned.

Much of this activity and investment over the last three years has been in the large format / distribution centre segment of the market. It has been a defining dynamic of the market over the last couple of years.

After five consecutive quarters of declining vacancy, the report cited total absorption of 1.1 million square feet and a vacancy rate of 5.67 percent in the second quarter of 2018.

“For the industrial market, having a vacancy in the mid five per cent range suggests we’re getting into a more balanced market. The previous several years have been much more of a tenant’s market with higher vacancy and it taking longer to just fill a space or sell a building,” said Jon Mook, executive vice president with Barclay Street Real Estate.

“We are now finding that there’s a steady flow of activity . . . The overall market is stronger. One of the biggest signs is always the land market and we’re seeing more interest and activity materialize in the last year than we’ve seen in the last couple of years. People generally look for land when they’re optimistic enough about the future that they’re willing to build or there’s a lack of available product on the market to suit their needs so they go down the path to build. That doesn’t happen in a weak market.”

There are early signs that the strength in the distribution segment might be starting to spread to the owner/user type business segment.

Mook said the current industrial real estate market is being driven by two extremes - smaller users that only need one or two acres to build 10,000 to 20,000 square feet and then the very large users.  He added that Calgary and area has not seen the levels of current construction since 2014.

“The big box developers are very bullish about the market and optimistic based on activity in the last 12 months,” said Mook.

The Barclay Street’s report said the region’s abundance of available land combined with access to major CN and CP intermodal yards are helping Calgary transition towards becoming a significant inland port.

“There seems to be some optimism about the future,” said Mook. “There’s a government election (provincial) next Spring and that definitely is talked about a lot. I think a lot of people feel there may be some positive change come next Spring. With that is people preparing to ramp up. The price of oil is better than it’s been in previous years. We are seeing more activity with the energy sector and startups in the energy sector than we’ve seen since 2014. It’s happening slowly but it is happening. That’s been a positive.”

“And e-commerce has driven big box distribution significantly. There’s a number of large deals with companies that want to have a distribution centre here or want to have a larger one.”

One of the projects Barclay Street is marketing is the Fulton Industrial Park, just outside of Calgary’s southeast city limits in Rocky View County, which is emerging as an attractive option for medium and large format industrial and commercial businesses in the region.

The project is located in the Indus area and offers significantly lower land costs, lower property taxes, no business taxes, no municipal franchise fees on power and gas utilities, less municipal bureaucracy and regulation, yet excellent access to the City of Calgary and regional transportation.  It is roughly 8 minutes from the newest residential communities in Calgary’s southeast.

Fulton has a high standard of infrastructure design, 11.5-metre wide paved industrial roads, urban road design with curbs and gutters with no roadside ditches, fiber optic communication, and allows stormwater discharge from lots.  Cost per acre is $350,000 with flexible lot sizes ranging from 2.5 acres to 100-plus acre sites.

Myshak Crane Group Relocates Calgary Operations to Fulton Industrial Park

The Myshak Group of Companies have relocated their Calgary operations to a new industrial building in the Fulton Industrial Park.

The Myshak Group officially relocated their south east Calgary yard and facilities to a newly constructed 30,000 square foot facility on 13 acres in the Fulton Industrial Park in Rocky View County.

Resland Developments were very pleased to assist the Myshaks with the design and construction of their new facilities and are very happy to welcome them to the Fulton Industrial Park.

Project Documents

documents brochure

Brochure
documents location map

Location Map
documents site plan

Site Plan
documents fulton gate

Building for Sale

About Fulton Industrial

LOCATION. FLEXIBILITY. VALUE.

Fulton Industrial Park is a 525 acre industrial business park with direct exposure to Highway 22x just outside of southeast Calgary.  Fulton can accommodate businesses seeking:

  • Land Purchase
  • Design Build Lease
  • Design Build Purchase

Contact Us

Fulton Industrial Park is being developed by RESLAND Development Group.

Brad Chorley
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  403.242.6002