Drumheller is my hometown, and is near and dear to my heart. Although I make only 20 percent of my fees in Drumheller, I still do my best to promote Drumheller whenever possible, and attract new businesses and national brands to Drumheller. Here's a few notes on commercial real estate divisions and areas in Drumheller.
Hygrade Industrial Park
Hygrade Industrial Park consists of 40+ acres of new industrial land that was leveled and serviced in 1997. Paul Bertamini was one of the first people to build in the industrial park, and then subsequently sold that building and rebuilt right at the front of the park.
The parcel sizes ranged from .38 acres to 2+ acres, but the average size of land that developers purchased was one acre to build a 4-5,000 sq ft building.
The advantage of this park is that it is located right in the center of Drumheller, close to the wholesale gas stations, parts stores, couriers, and anchor industrial tenants. The first phase of this park was built with curb, gutter, and industrial pavement, which helped fuel its popularity.
I was fortunate enough to win this leasing assignment in 2000 when only 10% of the lots were sold, and subsequently sold the remaining 90% of the lots in under 3 years. My success can be attributed to a growing industrial oil- and gas-fueled market, and my dedication to track down every lead possible.
As of the date of writing of this blog, I currently have 4 acres of land left available for sale and the owner will sell or build to suit, and possibly even lease back the building. Contact me for more information (email@example.com or see Sheddy.ca).
Rosedale Industrial Subdvision
The next big industrial subdivision is the Rosedale Industrial Subdivision. Century 21 has also been assigned this leasing assignment by the Town of Drumheller. This majority of this park is built with an industrial road base, sewer, water, gas and overhead power. Your commercial real estate agent can explain the specifics benefits and amenities of each lot.
This park has been applauded by some larger trucking clients for allowing the truckers easy access to the highway system without having to drive their large trucks through the downtown core.
Since many of the buildings in this area were built in the early 1900s, Drumheller's downtown is considered 'old' by Alberta standards.
All downtowns in Alberta are plagued with parking struggles, and I can sit for an hour discussing why the parking remains to be an issue, what I believe should be done to fix the issues, who has the power to solve the parking issues, and why they take so long to solve.
For the most part, the businesses in this area are surviving, and making the most of the parking issues. The rates in the downtown cores allow small businesses to start up with low overhead and operate in an area with a reasonable amount of walk-by traffic. Most of these rental spaces are owner occupied or are gross leases.
The next level of retail/office space for lease is the highway commercial lands mainly along Highway 9. These spaces are typically NNN (triple net) leases in newer premises. This is where the national brands prefer to locate, and I'm told, for them, the exposure from the drive-by traffic often offsets the higher costs to locate there.
Multi-family properties in Drumheller range from duplexes (two suites) to apartment buildings up to 30 suites. In the last few years, with the rise in property prices, some people have chosen to purchase half of a duplex as a primary residence, so I no longer agree to list these properties. Because of this, i now only sell triplexes, fourplexes, or larger. I try to make a distinct effort to separate myself from residential listings, as I feel that they take a trained residential specialist dedicated to assisting their clients in buying a 'home'. I won't pretend to be good at selling 'homes' and thus I often recommend leads to go online and find a good expert who 'crushes it' selling homes in their market. In my business it is an unemotional decision based on investment math, inflation/deflation, controlled costs, and return on investment.
I am happy to spend an evening discussing investment strategies with anyone considering investing in real estate.
Land and Development
Many new clients looking at land expect the land to be very cheap. They feel that because the owner has owned the land for many years, and had a sign on the property for as long as they can remember, that the property must be cheap, or that the seller will be desperate to sell. This is not the case.
Land is priced based on supply and demand, location, available services, and more. I once had a piece of land priced at $300,000 in 2001, and the owner increased the price by $50,000 each year until it finally sold in 2008 for $750,000.
As well, we've had transactions where a company has purchased a building and land for $700,000+, and knocked the building down (estimated worth: $420,000) to then build their dream building from scratch.
The land game is not for highly financed speculators. I only recommend that clients pay cash for land. If they can't pay cash, they might be in for a shock (financing, flexibility, future value, ability to hold, carrying costs, etc.).
For more information on these property classes, or ones I've omitted, please feel free to contact me at 403.324.2222 or email me at firstname.lastname@example.org.