The Pulse
Sept. 12, 2024

Several industrial companies from Canada's biggest cities are relocating to the Edmonton region.

Gregg Maimann, senior vice-president of industrial sales and leasing at commercial real estate firm CBRE, told Taproot that at least five companies from Vancouver and the Greater Toronto Area (GTA) have recently moved part or all of their operations to the region. Maimann said he couldn't share specific companies but did share that a "major tire company" and a "wholesale plumbing and construction materials distribution company" are among the new arrivals.

Vancouver companies find the Edmonton region attractive because the Lower Mainland is running out of developable land, Maimann said. "(Vancouver is) bordered by the mountains, the ocean, and then a large agricultural 'do-not-touch area' that cannot be developed," he said.

He added that he feels both Vancouver and Toronto have less business-friendly governments than those in the Edmonton region. "In the GTA, because of the time and the bureaucracy that it takes to develop a building, it can account for kind of up to 30% of the cost and the time to develop a property," he said. "Although we're not perfect here, we're certainly far better than the Vancouver area and … the GTA."

Land is also cheaper here, Maimann said. Companies can find fully-serviced industrial land for $600,000 per acre in the Edmonton region, while similar land can cost up to $5 million per acre in the Lower Mainland and up to $3 million per acre in the GTA, Maimann said.

Many of the companies relocating to the region are choosing to do so south of Edmonton rather than within the city's boundaries, Maimann said. He said that could be explained by the soil in the industrial areas. "The greater Edmonton area has a diverse supply of land and a diverse geotechnical makeup of that land. The geotechnical quality, or how receptive it is to load-bearing structures, how well you can build on it, and what you have to do or don't do to it, varies greatly."

For example, land in Leduc and Nisku tends to be made up of low plastic clay, meaning it doesn't absorb moisture readily and it's easier to build on. Meanwhile, on the west side of Edmonton for example, the soil tends to have more peat, which must be removed before building. "There's areas around west Edmonton, and out towards Spruce Grove, where you'll see big tracts of land (and wonder), 'How come there's no houses or buildings or anything?' That's because it's undevelopable. It just doesn't pencil out financially to remove all of that peat moss and bring in fill," Maimann said. "You can't make a dollar at it."

Historically, much of the region's industrial land has been dominated by oil and gas companies. Maimann said the industries investing to develop land are becoming more diverse. "With the advent of internet sales and web-based distribution … Amazon has four different locations here in Edmonton, and probably totals upwards of seven million square feet themselves of distribution space," he said.

The trend of industrial businesses choosing to locate outside of Edmonton's city limits can be a boon for some municipalities but a challenge for others. For the City of Edmonton, it poses a significant financial problem, the city's administration noted at a June 19 executive committee meeting. Edmonton generates more tax revenue from industrial and commercial properties than it does from residential properties, but the city's tax base is composed of 78% residential properties and 22% non-residential properties. Most other municipalities in the region have roughly 60% of their tax base made up of residential properties and 40% of non-residential. Fifteen years ago, 72% of the region's industrial properties were located within Edmonton. Today, that number has fallen to 60%. During the executive committee meeting in June, Mayor Amarjeet Sohi expressed concern with the situation. "We need to get ahead of it. We have lost too much ground on this," Sohi said.

As Taproot recently reported, the growing investment in industrial land south of Edmonton is also prompting a residential building boom there, according to BILD Edmonton Metro, a regional real estate industry association.

Photo: Several industrial businesses are relocating to the Edmonton region, especially to Leduc, pictured here, and Nisku. (City of Leduc)

• Edmonton Public Schools says it will run out of space for students by the 2026-2027 school year and needs 50 schools by 2033 to meet demand. Superintendent Darrel Robertson said there is "desperate need" for space as the division struggles to accommodate kids as close to home as possible. Since 2020, school sizes have been limited by a growth control model, which relies on a lottery system that puts some students in designated overflow schools.
• The Alberta Human Rights Tribunal heard testimony from David Schening, an Edmonton Police Service 911 operator whose handling of a call from trans advocate Marni Panas in 2019 is at the centre of a human rights complaint. During the call, Panas asked for police to do a safety check on her friend, who she identified as transgender, because the friend had failed to check in while on a date. In his testimony, Schening said he stands by his assumption that police didn't need to be involved, and that he doesn't understand why misgendering is hurtful to trans people. During the 911 call, Schening also made the false suggestion that Panas's friend was a sex worker, Postmedia reported.
• A section of 95 Street NW, between 105 and 106 Avenue NW, will be closed over coming weekends to accommodate planned LRT track rehabilitation work. The closure will be in effect from 7pm on Sept. 13 to 4am on Sept. 16, and during the same timeframe from Sept. 27 to 30. Bus stops in the area will also be closed, but LRT service will continue its regular weekend schedule. A City of Edmonton construction notice includes an image of the affected area.
• Edmonton Fire Rescue Services held a memorial ceremony on Sept. 11 to honour firefighters who died on duty this year. Firefighters marched from Connaught Armoury to the Firefighters Memorial Plaza in Old Strathcona. The ceremony is organized every Sept. 11 to mark the greatest-ever single loss of firefighters in history following the terrorist attacks on the World Trade Center in New York. Postmedia published a photo album of the ceremony.
• The Kaleido Family Arts Festival, a free music, arts, and theatre event on Alberta Avenue, is set to kick off its 18th season on Sept. 13. The family event will feature art galleries, street performances, and vendors along 118 Avenue NW between 90 and 95 Streets NW. The event wraps up on Sept. 15.
• Katie Mulkay and Taylor McPherson, best friends from Edmonton and Calgary, won the grand prize on season 10 of Amazing Race Canada. In the finale episode, the race took teams to various Edmonton landmarks, including the High Level Bridge, the Butterdome, and the Royal Alberta Museum, and wrapped up at Commonwealth Stadium. Last year, Calgarians Ty Smith and Kat Kastner won the competition, and in 2019, Anthony Johnson and James Makokis, an Indigenous two-spirit couple from Alberta, took home the grand prize.
• Edmonton restaurants Bar Henry, Bernadette's, and Little Wolf were included on Air Canada's list of best new restaurants of 2024. Critics wrote up colourful reviews of the restaurants for Air Canada's website. The year's top 10 will be revealed in Toronto on Nov. 4.
• The Edmonton Oilers are expected to start training camp without forward Evander Kane and defenceman Darnell Nurse, who are both recovering from injuries. Kane has a sports hernia and may miss the start of regular season, while Nurse is expected back later in training camp.

Here are open opportunities to engage with local governments in the Edmonton region.

• Transit Master Plan Update — Strathcona County has released a What We Heard report based on its first round of engagement for its updated transit master plan. Residents can now provide feedback on proposed changes through a survey, which closes Sept. 20.
• Naturalization Survey — With the City of Edmonton set to plant two million trees by 2030, administration is seeking views from residents on naturalization. Edmontonians can share their thoughts on naturalization efforts in more than 30 open spaces through a survey, which closes Oct. 20.
• Public Engagement Feedback Survey — Any residents who have responded to the City of Edmonton's calls for public engagement are invited to complete a feedback form on their experience. Feedback can be provided through a survey open until Dec. 31.

More input opportunities

• Until Sept. 20: Traffic calming in Mission, North Ridge, Oakmont, and Riverside (City of St. Albert)
• Until Sept. 22: Applications to join municipal boards and committees (Town of Morinville)
• Until Sept. 27: Retail Gap & Complementary Sector Analysis Survey (Town of Morinville)

Photo: Strathcona County is creating a new Transit Master Plan that will guide transit operations for the next 10-20 years. (Strathcona County/Flickr)

Here are some events happening today in the Edmonton area.

• BOLD Leadership & Strategic Edge starting at 12pm online
• Historic Tours: Downtown tour starting at 6pm at the Musée Héritage Museum
• Sorrentino's St. Albert Mushroom Harvest Wine Dinner starting at 6:30pm at Sorrentino's (St. Albert)
• 75 Ways to Save On Household Expenses starting at 7pm online
• ASKO starting at 7:30pm at Festival Place

And here are some upcoming events to keep in mind:

• Sept. 27: Mental Health First Aid Certification at REACH Edmonton Council
• Sept. 28: The Food Drive
• Sept. 30: Orange Shirt Day Run/Walk at Kinsmen Park

Visit the beta version of the Taproot Edmonton Calendar for many more events in the Edmonton region.