From coast-to-coast, Colliers’ national network of advisors identifies and helps realize unimagined opportunities for their clients. Toronto-based investment professionals Victor Cotic, Executive Vice President National Investment Services, and Gord Cook, Executive Vice President recently collaborated with the Regina team of Glen Hill, Senior Vice President and Partner, and Robert Porter, Senior Sales Associate from Regina, to complete a $28M industrial investment sale of Titan Business Park, located at 855 & 905 Park Street, Regina, Saskatchewan.
This offering of a high-quality, multi-tenant, distribution facility with approximately 22 acres of severed excess land represented a rare opportunity to acquire one of the premier industrial business parks in the constrained Regina market. The property is rich in value with opportunity for leasing, rental rate growth and development.
Titan Business Park is institutionally managed and maintained. In 2018, the property was extensively renovated with nearly $2.5M in capital upgrades made over the previous four years, making it highly attractive for its current and future tenants.
Solutions found within a constrained market
Regina is an established industrial market with over 25M SF of inventory, however annual new supply and construction has been limited. Within the past 18 months, industrial vacancy rates in Regina have decreased from nearly 6% to approximately 2.5%. Like other Canadian industrial markets, Regina has seen an increase in construction costs, limited development sites, and facing similar COVID-driven supply chain challenges. As a result, replacement costs for industrial buildings in Regina are in the $210 PSF range causing developers to target net rental rates as high as $15.00 PSF in order to achieve desired development returns. The premium rental rates for new construction have pushed tenants to consider renewals or existing buildings, making this already multi-tenanted property an attractive prospect to potential investors.
Experts choose experts within Colliers national platform
By being collaborative and enterprising, our Colliers advisors knew the best way to service their client was to tap into the expertise and relationships and thereby unlock the full potential for this transaction. A national platform not only allows for the sharing of resources and best practices but breaks down the geographic barriers to great investment opportunities for our clients. Colliers’ significant presence in the prairies provided the advantage of pairing the right property with the right client, representing both the buyer and the seller.
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