Industrial Development

INDUSTRIAL MARKET OUTLOOK According to Colliers International’s third quarter industrial report, vacancy rates are on the rise for 2016. As the downturn in the oil and gas and potash markets takes effect, Colliers expects the industrial market to continue to soften. In Regina area, the Global Transportation Hub is experiencing substantial vacancies with an estimated 550,000 square feet of vacant space. Landlords of older properties and new properties without outside storage space are at a significant disadvantage. Median leasing rates in Regina remain at $12 per square foot, the same as six months ago, but there may be reductions in 2016, as landlords become more competitive to attract tenants. Even so, Colliers says the Regina market fundamentals are still very strong and its vacancy rate is still low relative to the rest of the country.

NEW MOOSE JAW INDUSTRIAL PARK This industrial park is situated next to a national railway and the Trans-Canada Highway ideal for export east, west and south. The City of Moose Jaw is looking to attract a cluster of industrial processing plants willing to cost share infrastructure, including: sewer and water, roads, rail, gas and power utilities. The new industrial park will serve as a major processing and distribution hub using both rail and truck transportation. The industrial park is located in the southeast quadrant of the city, near the waste water treatment plant, lagoons, and effluent irrigation. This is the type of infrastructure attractive to wet processing industrial plants.

FOR SALE

Moose Jaw’s Industrial Park is selling serviced industrial parcels ranging in size from 30 to 100+ acres. The rail spur with future access to the CP mainline makes Moose Jaw’s new industrial park one of the more unique ones in Western Canada.

Commercial Development

SASKATCHEWAN COMMERCIAL MARKET OUTLOOK According to Colliers International’s 2015 second quarter report on Saskatchewan, office space will remain a challenge throughout the coming year. In Regina completion of Harvard Developments’ $60M Agriculture Place will shift existing Class B+ tenants into Class A office space. Class A quality office space is at a premium with less than 5 percent vacancy rate and commanding $30-$40 per square foot, while Class B+ and B have vacancy rates ranging from 12.6 to 15.6 per cent. Class B space lease rates range from $22-$25, but it is now a tenant’s market so expect both price reductions and incentives to attract tenants.

AVAILABLE OFFICE AND/OR RETAIL COMMERCIAL SPACE Thatcher Drive is a major traffic thoroughfare serving a growing commercial district… and home to several large multinationals and box stores, such as Walmart, Superstore, Staples, Peavey Mart, and Mark’s Work Warehouse. Commercial developments include Harvard Developments’ “Thatcher Crossing” and Century West’s strip mall. The former Sobey’s grocery store (6,000 square feet) will reopen as a Rona Store. Main Street - Construction of the $27 million Civic Centre Plaza on Main Street in 2016 will add 70,000 square feet of leased retail and commercial space to the city’s inventory. The former Zeller’s store (estimated 15,000 square feet) in the Town N’ Country Mall is currently vacant with plans to reopen as Save-on-Foods Store in 2017. The restoration of historic Ross School located east of the Town N’ Country Mall offers 34,416 square feet of prime office space and is available for lease. A new bulk refueling station will be built on the site of the former Liquidation World in 2015. Moose Jaw is on the list of smaller communities slated to receive private liquor stores, with plans not expected to proceed until after the 2016 election, if at all.

According to ICR’s 2015 Small Market Report, economic forecasts for the province are based on normal weather conditions and typical agricultural production. The rebound will be tempered by continued declines in the energy sector. Moose Jaw’s commercial vacancy rate is no longer the highest in the province, dropping to 5.1 per cent from 6.94 per cent recorded in 2014, and 6.73% in 2013. This reflects the uptake of existing vacant properties by new commercial enterprises a positive trend that will continue to improve.

Moose Jaw currently has a significant inventory of premium office space available thanks to the stunning restoration of historic Ross School with 34,416 square feet for lease. Like Regina, Moose Jaw will feel upward influence on commercial vacancy rates as the provincial economy retracts.

MOOSE JAW COMMERCIAL RETAIL LEASE RATES Commercial lease rates vary considerably based on the property’s location, age and size of the space. Lease rates for new properties located along the busier streets (i.e. Main Street, Thatcher Drive) are in the $20-25 per square foot range.

MOOSE JAW’S MAJOR COMMERCIAL ZONES

  • MAIN STREET NORTH The Town N’ Country Shopping Mall has a variety of chains and small merchants under one roof, with Sears its anchor store. The Town N’ Country Mall hopes to add another anchor tenant coming to replace the vacant Zeller’s space. Canada Tire and the new $27 million Civic Centre Plaza are the other two anchors.
  • DOWNTOWN Thanks to its historical buildings and the multiplex Moose Jaw’s downtown has attracted a strong tourist trade as the perfect setting for unique boutiques, coffee cafes and restaurants. The downtown area has enjoyed more than a decade of low vacancy rates especially along Main Street. Storefront retail lease rates ranging from $12 to $18 per square foot triple net.
  • THATCHER DRIVE This major traffic thoroughfare serves a growing commercial district… and is home to several large multi-nationals and box stores, including Walmart, Superstore, Staples, Mark’s Work Warehouse, and many others housed in various commercial developments, including Harvard Developments “Thatcher Crossing”, Century West’s strip mall, Rona and Village Ford Lincoln.
  • GRAYSON BUSINESS PARK Grayson Business Park has the largest inventory of serviced commercially-zoned properties (C-3) for sale. The City of Moose Jaw has several of 0.5 to 1.6 acre parcels for sale, ranging in price from $120,000 to $160,000. These lots are build-ready with sewer, water, storm sewer, fire hydrants, natural gas, power, and curbs with heavy haul asphalt streets. As an incentive, the City provides the purchaser with an Environmental Phase 1 and Commercial 5-year Property Tax Phase In (excludes land). Note: Land in the Global Transportation Hub (GTH) sells for about $196,000/acre and Regina’s Carson Business Park sells for $295,000 to $395,000 per acre. The cities of Swift Current (Munro Industrial Park), Yorkton and Weyburn are selling fully serviced land for $100,000, $125,000 and $114,000 per acre, respectively.
  • NORTH SERVICE ROAD Moose Jaw Ford is the newest anchor to this highway commercial area; this areas showcases a number of full service gas stations, truck stops, refueling stations, hotels and warehousing.
  • 9TH AVENUE This is a major traffic route connecting the north end of the city to the south with the 9th Avenue Bridge to DND 15 Wing. A wide range of small commercial businesses dots the entire length of 9th Avenue including: Mac’s, 7-11, gas stations, hairdressers, doctors’ office, restaurants, repair shop, etc. In 2016 the City’s third Tim Horton’s will open at south of the 9th Avenue Bridge.

NEW COMMERCIAL AND INDUSTRIAL PROPERTY TAX PHASE-IN The City of Moose Jaw provides a five year property tax phase-in to new builds and expansions. The exemption is applied to the increased assessed value resulting from construction, as follows: 100% Year 1; 80 % Year 2; 60% Year 3; 40% Year 2; and 20% Year 5 (excludes land).

JOB CREATION INCENTIVE is based on the number of jobs created: For example, a company creating more than 60 new jobs in manufacturing or processing, transportation/warehousing distribution or communications and research sectors can receive a five-year 100% property tax exemption(excludes land).

OTHER PROPERTY TAX INCENTIVES ARE AVAILABLE Heritage, Re-Use of an Existing Building; Living over Shops (downtown only); Replacement Housing/Vacant Lot In-fill Incentive; and the Grayson Business Park Environmental Phase I.

To encourage landowners of vacant property to develop, the City passed a by-law increasing the mill rate of vacant commercial and industrial land 2.5 times that of developed land.

Moose Jaw Tax Incentives