The cost of industrial space in the Fort McMurray area keeps climbing, and now sits at close to $50 per square foot annually in some projects, according to Colliers International. In comparison, prime industrial lease rates in Vancouver and Calgary are in the $15 to $20 per square foot range.
The commercial property firm is predicting continued hikes in rental rates in the Fort Mac region, reflecting market demand and rising construction costs.
As local politicians are quick to point out, the area is also starved for raw land for development, which isn't helping matters much. The provincial government is the biggest landowner in the region, and has been criticized for bringing developable land on stream too slowly.
Fort McMurray also has the "greenest" industrial sites in Alberta, with developers required to build to higher environmental standards than in most municipalities in the city-own sites.
