Media attention in North America has been focused on the trials and tribulations of the Keystone Pipeline, the Northern Gateway Pipeline and the impact of shale gas on Alberta’s economy going forward.
Oil prices were off earlier in 2013, which added to concerns about the future. Oil prices have since rebounded and someone must have forgotten to tell the industry in Alberta, particularly in Edmonton, that there were problems with our economy. Major players in the resource industry are continuing to invest huge capital in oil sand plants, upgraders and transportation infrastructure.
In Edmonton, land development for industrial and residential expansion is moving forward at unprecedented levels. The downtown arena development and all of its ancillary residential, commercial and entertainment development is underway. Construction work has begun on the Northwest Upgrader just minutes north of Edmonton in Redwater, Alberta. The result is a substantial increase in construction and engineering work. The demand for labour continues to grow.
To read more, download the Q3 2013 Cap Rate Report below.