Finding the right real estate for your business is a balancing act.
While there is a prevailing perception about companies wanting to be in the business hub of major cities, we have recently seen a new trend among Reinhart Group clients and other industrial companies in Canada. Many are opting for the outskirts of major metropolitan areas for more than just bigger yard space.
What is causing this trend?
- Need for mobility: Being outside a busy city, close to ring a road, enables larger vehicles and trucks to move around more efficiently. Since many of these roads cater to oversized vehicles, with wider lanes for tanks and large equipment, it is easier and faster to get to the job site. It also minimizes congestion, eliminating time stuck in traffic.
- More bulk fuel stations: On one of our recent projects in Lloydminster, we noted how valuable fuel partnerships can be. Companies teaming up on their use of bulk stations are taking advantage of easily accessible fuel.
- Desire for oversized car washes: With washing facilities onsite, the need to transport large vehicles through congested areas for cleaning is eliminated.
- Safety concerns: Safety regulations in Canada and Alberta are stringent. Many companies, therefore, want large open areas for entering and leaving their yard with larger pieces of equipment.
As prices continue to rise, close proximity to a ring road, fuel, and a wash facility help industrial companies save money. Given lower population density, and some ring roads being expanded to handle larger equipment than a city can accommodate, there is an incredible safety advantage to being on the outskirts.
Before making any decisions, there are a few things you will want to consider if you want to avoid planning a building you have outgrown by the time you take possession. When you are choosing a location, here are some questions you want to consider:
- What does your business plan look like? It is expensive and time-consuming to keep moving. A builder can best meet future needs by knowing how you plan to grow the company.
- How will you use the space? Truck repair, chemical storage, and retail factories carry different code requirements. Corrosive materials, for instance, require a containment pond be present.
- Do you have recycling needs? On site chemicals and cleaning solutions, will necessitate onsite recycling facilities to prevent environmental or sewer system damage. Keep in mind fines are levied if faulty systems are in place.
- What yard layout will you need? Movement patterns for materials should be designed properly at the outset for maximum efficiency.
- Will you need rail access? A few steps can be saved in the transport process if you plan for onsite shipping by train.
Looking to the future, we believe water and storm management will play increasingly larger roles in the planning phase. As we shift from a water abundance mentality to one of conservation (thanks to water commoditization and price increases), the ability to recycle water onsite will further enhance savings. Alberta has been a dry province, but moisture levels are rising. If this continues, storm water management will be a key consideration in selecting building locations in future.