March 26, 2018
There is optimism among owners, tenants and buyers in Medicine Hat’s commercial real estate market.
In general, inquiries for office and shop spaces are increasing while vacancies for small industrial bays, in the 2,000-4,000 square foot range, are dropping.
“It is a challenge to find prospective tenants a smaller space, especially in the southwest light industrial area and Brier Park,” says Adam Andrews, commercial real estate associate at Re/Max Medalta Real Estate. “We have a number of buyers that would probably make a purchase immediately if they found a good 4,000 square foot shop on a one-acre parcel.”
Generally, industrial buyers and tenants are searching for a 500 square foot reception area with offices and the workshop taking up the remainder of the space.
“People are interested in making a change, potentially moving to increase the leaseable area and the size of their business,” says Andrews.
Medicine Hat’s primary industrial activities include oil and gas services, petrochemical manufacturing, metal fabrication, agri-business and construction. Major industrial areas include Brier Park estates and the southwest light industrial area, which are both situated along the Trans-Canada Highway. Burnco Concrete and the Medicine Hat Regional Airport anchor the southwest light industrial area while Brier Park Estates is home to petrochemical manufacturers Cancarb, Methanex and CF Industries.
As of February 28, 2018, there are 143 active commercial listings and 19 new listings, according to the latest data from the Medicine Hat Real Estate Board. On the same day last year, there were 139 active listings and 15 new listings.
Overall, the commercial market remains stable, with the continued buzz among buyers, sellers, landlords and tenants is the feeling that the economy will keep improving into the future.