June 27, 2018
Major industrial projects underway in Medicine Hat, with potential to employ upward of 500 people, are starting to have their desired knock-on effect.
“We have identified Medicine Hat as a major real estate opportunity in Alberta,” says Chet Oberkirsch, Director of Real Estate for Shift Investments. “A city that is actively seeking investment is a big factor for us in choosing where to invest.”
Founded in 2016 by the Davis Group, Shift Investments develops industrial, retail and office real estate in the $500,000 to $10 million dollar range and beyond. Real estate solutions include options for tenants to build to suit and sign long and short-term leases.
With a head office in Lethbridge, the company is planning a Western Canada expansion and are acquiring their second Medicine Hat project.
Currently, Shift owns more than 300,000 square feet of real estate in Medicine Hat and sees opportunity to develop multi-tenant industrial spaces with bays ranging from 2,500 square feet to 10,000 square feet. Additionally, they see opportunity in larger, single tenant properties.
Indeed, the number of new commercial listings in Medicine Hat is on the decline.
In May 2018, there were 139 active commercial listings and 10 new listings, according to the latest data from the Medicine Hat Real Estate Board. On the same day last year, there were 140 active listings and 25 new listings.
“This spring, there’s been a positive, optimistic outlook in the market, says Adam Andrews, commercial real estate associate at Re/Max Medalta Real Estate. “Investors from across Alberta are looking for commercial properties to purchase in Medicine Hat.”
For now Shift is focussed on Brier Park Estates and the Southwest Industrial Park, which are home to two major new developments including Aurora Cannabis’s 1.2 million square foot cannabis production facility and Hut 8’s $100 million data centre. Together these two projects are projected to create nearly 500 new jobs.
“There are two major construction projects by new companies are underway in Medicine Hat,” says Ryan Jackson, CEO of Invest Medicine Hat. “This is a signal to real estate developers that Medicine Hat is open to investment.”
With hundreds of new jobs expected to hit the market, real estate developers have Medicine Hat in their expansion plans.