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Market Update
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CN Announces new $100 million Calgary Logistics Park

CALGARY, Feb. 4, 2010 - CN (TSX: CNR)(NYSE: CNI) today announced it plans to establish a new $100-million CN Calgary Logistics Park in Conrich, located in Rocky View County north east of Calgary. 

The 680-acre park is planned to include a state-of-the-art intermodal terminal with room for customers to co-locate with CN and custom build their facility in place. The Logistics Park will be designed to include a multi commodity transload and warehouse facility, an automotive compound, and a liquid/bulk transload and distribution facility. The site is strategically located a few miles east of the Calgary Airport, on Twp Road 250/ McKnight Boulevard, providing fluid access to Stoney Trail and other major roadways.

"We are very excited about business prospects in Alberta and this investment in the Calgary area," said Claude Mongeau, CN president and chief executive officer.  This facility is part of our program to grow a network of logistics parks that provide seamless and efficient transportation and distribution capabilities for customers, linking their facilities across North America."

"Combined with CN's superior rail service offering, this is a win-win combination," said Mongeau.

Calgary is the third largest distribution centre in Canada and is becoming the logistics hub of Western Canada, serving a rapidly expanding market. The new site provides ample space for current and planned customer initiatives, and the park will be designed to allow easy expansion as the Calgary hub continues to grow. 

The new CN Logistics Park will offer the potential for a total warehousing footprint of over two million square feet to customers who need to distribute their goods across Western Canada, whether sourced from Asia through the West Coast or coming from eastern Canada and the US. CN provides the fastest rail freight transit time between Eastern and Western Canada, which will allow customers' goods to be on the shelves within three days, a major advantage in managing inventory especially in peak season.

"This is an exciting prospect for Rocky View County and ties in well with our long-term strategic direction," stated the County's Chief Administrative Officer, Rob Coon. "An investment of this magnitude would bring substantial benefits to both the County and the Calgary regional area."

This project will be subject to regulatory approval, including a thorough environmental assessment and public consultation. With a scheduled opening expected in 2013, most of CN's Calgary yard operations will shift to the new Logistics Park. CN will also continue to provide quality rail service to customers along its existing lines in the City of Calgary.

Please visit www.cn.ca/calgarypark for a map of the CN Calgary Logistics Park's location.

Read the article


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Market Activity
Calgary Industrial Market overview Spring 2010

 

After a soft 2009 with virtually no new construction and lease vacancy rates close to 7% the first quarter of 2010 showed positive leasing and sales activity. The Calgary industrial real estate market may now be considered 'balanced', or at least considered stable and is relatively strong compared to most North American markets.  The cautious optimism for the Alberta economy to recover has resulted in  more 'deal flow' and some developers are seriously considering new projects to get underway over the next year. Industrial headlease  rental rates appear to have stabilized and may gradually move upwards over the next 12 months. There are plenty of sublease options available but with short remaining terms they are not necessarily bargains. Tenants continue to be in an advantageous position as they search for space and undertake the negotiation process. Expect more competitive rental rates and tenant incentives.

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Sean D. Bradley
Associate
Advent Commercial Real Estate Group
 


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About Sean
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Sean Bradley utilizes the unique strengths of the Industrial group to specialize in Industrial properties For Sale and Lease in Calgary and surrounding areas. His market Knowledge, service excellence and accountability endure him as a trusted adviser to his clients.


Call 403.607.8635 or
email
for your free consultation

Specializing in Calgary Industrial Real Estate

www.bradleyrealestategroup.ca


CN Announces $100 million Calgary Logistics Park
Calgary Industrial Market Overview Spring 2010
5-Step Marketing Plan
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