Insider Info
Industrial Market Overview
The City of Cornwall has a well-established
industrial sector. The sector has diversified significantly over the past
several years to include logistics, distribution, call centres, plastics, consumer manufacturing and hi-tech.
Recent Activity
The business and industrial sector have seen continued positive growth for the past several years. Several new industries have relocated in town and subsequently leased or purchased existing properties. There has been a significant amount of new construction as well, all concentrated in the City's well positioned Industrial Park in the east end.
Inventory
Sustained positive growth has meant that existing inventory of available industrial and warehousing space has decreased significantly. At the current time, it is estimated that there is approximately 300,000 sq.ft of available space, comprised of approximately 5 buildings, although that number can change at any time.
Land, however, is another story. The City's industrial park currently has over 1,000 of serviced land available for immediate development. Land costs are $20,000 an acre.
Aquistion Costs and Lease Rates
The cost of purchasing a manufacturing facility in Cornwall is
amongst the lowest in North America, and indeed the world, according to a study by KPMG. Recent sales have seen prices range from $10-$20 per square foot (and lower) for modern quality industrial facilities.
Lease rates in Cornwall are amongst the lowest in North America. The
following table provides a range of expected lease costs for currently
available industrial space.
| INDUSTRIAL LEASE RATES & OPERATING COSTS |
|---|
| Item | Low | Avg. | High |
|---|
| Rental Rate | 2.50 | 3.75 | 3.75 |
| Realty Tax | 1.00 | 2.00 | 2.50 |
| Yard Maintenance | 0.03 | 0.05 | 0.07 |
| Snow Removal | 0.05 | 0.05 | 0.05 |
| Building Insurance | 0.03 | 0.10 | 0.15 |
| Water and Sewer | 0.03 | 0.03 | 0.05 |
| Heating | 0.30 | 0.35 | 0.50 |
| Lighting | 0.15 | 0.20 | 0.25 |
| General Maintenance | 0.10 | 0.12 | 0.15 |
| Total | $4.49 | $5.65 | $7.47 |
|---|
All costs are CDN$, based on per square foot of leased space per annum.
The above figures are based on a 5 year lease of a 25,000 sq. ft. industrial
warehouse and do not include process utilities. Rents and operating costs
vary from property to property and are provided for information purposes
only. Prospective tenants should not expect to find any one building at
either the low end rate or at the high end rate. It is often the better
quality buildings which have some of the lower operating costs for items
such as: insurance, heating, maintenance, etc. Quality space is readily
available at overall rates between $5.50 and $7.00. For advice on negotiating
a commercial lease, check out the Insider Information section of this web site.
More Information
RE/MAX Cornwall has qualified and experienced commercial brokers on staff, led by
Jamie Cameron and Terry Landon. In addition to finding an appropriate building, companies need detailed information on a variety of site selection factors, including average wage
rates, utility fee structures etc. For more detailed information on
establishing a facility in Cornwall, check out the web site of
Cornwall Economic Development,
or contact a development officer directly at (613) 933-0074.
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