Common Questions

Here are a few common questions to consider before embarking on your search for industrial space in Calgary.

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How much space do I need for my operations? Determining the right amount of space depends on your business type, inventory volume, employee count, and equipment requirements. Industrial users often calculate space needs based on factors such as warehouse storage capacity, ceiling height, and the number of loading docks required for shipping and receiving.

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What should I consider when selecting a site for my industrial facility? Choosing the right location is critical for efficiency and cost-effectiveness. Key considerations include proximity to major highways, rail lines, and labour pools, as well as zoning regulations, utility access, and potential environmental restrictions that could impact operations.

 

What are the different types of industrial properties? Industrial real estate includes a wide range of property types, each designed for specific uses. Warehousing and distribution centres cater to logistics and storage, manufacturing facilities accommodate production, flex spaces offer a mix of office and industrial use, and cold storage facilities serve businesses needing temperature-controlled environments.

 

How do lease terms for industrial properties typically work? Industrial leases often differ from office and retail agreements in structure and duration. Most industrial properties in Calgary are leased on a triple-net (NNN) basis, meaning tenants are responsible for taxes, insurance, and maintenance. Lease terms typically range from five to ten years, with factors such as tenant improvements and rent escalations negotiated upfront.

 

What loading and parking features should I look for in an industrial space? The design and layout of an industrial property significantly impact logistics and productivity. Features like dock-high doors, drive-in access, truck court depth, and trailer parking availability are essential considerations for businesses that rely on efficient transportation and distribution.

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How do power requirements impact industrial property selection? Industrial facilities often have varying power needs depending on their operations. Manufacturing plants, for example, may require three-phase power for heavy machinery, while cold storage facilities need high-capacity electrical systems for refrigeration. Before leasing or purchasing a property, it's crucial to assess the available power supply, the cost of potential upgrades, and whether the local utility infrastructure can support your operational demands.

 

Should I lease or buy an industrial property? Deciding whether to lease or buy depends on multiple factors, including financial strategy, business growth projections, and long-term operational goals. Leasing offers flexibility and lower upfront costs, while purchasing provides stability and potential asset appreciation. Each option has advantages depending on the company's needs.

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What are the biggest mistakes companies make when leasing industrial space? Businesses often overlook critical aspects of industrial leasing, such as future expansion needs, hidden operating costs, or zoning restrictions. Failing to negotiate lease terms effectively, underestimating utility requirements, or choosing a location with inadequate access to transportation routes can lead to costly inefficiencies in the long run.