2012 Global Market report - NAI Global

Regina, Saskatchewan, Canada
Contact
NAI Commercial
(SASK)
+1 306 525 3344
Country Data
Area (Sq Mi)
GDP Growth
GDP 2011 (US$ B)
GDP/Capita (US$)
Inflation Rate
Unemployment Rate
Interest Rate
Population (Millions)
3,855,100
2.7%
$1,632.89
$47,340.29
2.0%
7.5%
1.0%
34.493
The Saskatchewan market remains very strong and is
expected to experience continued steady growth well into
2012 supported by strong commodity prices. Look for rates
in all sectors to continue steadily upward as demand, low
vacancy rates and a lack of new product will naturally force
rates upward into 2013.
The strong Saskatchewan economy has proven to be a real
positive for the retail market. The Grasslands project in the
southwest corner of the city is an exciting new development
that will shift the retail and will attract new and exciting
retailers to the city. Modest growth in the east and northwest
sectors will continue with all others areas maintaining both
rental and vacancy rates.
The Regina office market has enjoyed a historically low
vacancy rate, below 2% in most asset categories. The
construction of a new office tower will add 200,000 SF to
the market in 2012. Plans are underway for an 80,000 SF
downtown office building. Rental rates continue to rise as
the difference between new construction and the existing,
shrinking supply becomes more apparent. Look for continued
strength into 2013.
The Regina industrial market is beginning a marked change
as a result of the investment in the intermodal project on
the city's west side. Now complete is the 1 million SF facility
with 300-400 new jobs created. Yanke Transport will
construct a new 250,000 SF terminal as well. Industrial
lease rates remain strong with rates approaching $10.00/SF
for warehouse space and $13.00/SF for industrial office
space.
Land prices remain steady in the range of $225,000.00/acre
with ample supply. The investment market remains very
strong with good quality investment properties in short supply.
The performance of the Saskatchewan market in light of the
recession has resulted in a steady demand for this type of
product. CAP rates that are sub 8% are not uncommon for
quality properties that are well located and well tenanted.
Rural market interest in agricultural land in Saskatchewan
has risen steadily for the past three years. Increasing
commodity prices have led to increased demand for rural
land. Look for value to increase as investors outside
Saskatchewan view the potential of this province. Worldwide
demand for agricultural products will foster continued growth
in 2012.
Regina At A Glance
conversion 1.01 cad = 1 us$ NET RENT/SF/YR US$ NET RENT/SF/YR
low High low High Vacancy
doWntoWn offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
suburban offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
IndustrIal
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
Downtown
Neighborhood Service Centers
Sub Regional Centers
Regional Malls
Solus Food Stores
CAD 37.00 CAD 40.00 $ 36.63 $ 39.60 N/A
CAD 21.00 CAD 26.00 $ 20.79 $ 25.74 N/A
CAD 15.00 CAD 18.00 $ 14.85 $ 17.82 N/A
N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A
CAD 10.00 CAD 13.00 $ 9.90 $ 12.87 N/A
N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A
CAD 24.00 CAD 30.00 $ 23.76 $ 29.70 N/A
CAD 14.00 CAD 28.00 $ 13.86 $ 27.72 N/A
N/A N/A N/A N/A N/A
CAD 37.00 CAD 52.00 $ 36.63 $ 51.49 N/A
N/A N/A N/A N/A N/A
deVeloPment land low//acre High/acre low/acre High/acre
Office in CBD
CAD 2,613,600.00 CAD 3,920,400.00 $ 2,587,899.60 $3,881,631.60
Land in Office Parks
N/A N/A N/A N/A
Land in Industrial Parks CAD 250,000.00 CAD 300,000.00 $ 247,524.75 $ 297,029.70
Office/Industrial Land - Non-park
N/A N/A N/A N/A
Retail/Commercial Land CAD26,136,000.00 CAD 39,204,000.00 $25,877,253.00 $38,815,880.00
Residential
N/A N/A N/A N/A
2012 Global Market Report n www.naiglobal.com 48