The City of Cornwall has a well-established Industrial/Business park. 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. Most recently the park has been enhances with the ongoing construction of the new Shoppers Distribution Warehouse. There has been a significant amount of new construction as well, all concentrated in the City's well positioned Business Park in the east end.
Inventory
The positive growth has meant changes to the existing inventory of available industrial and warehousing space in the City. Presently, it is estimated that there is approximately 800,000 sq.ft of available space, comprised of numerous building both in the City and the region. if you're looking for space you can expect to find a wide selection of buildings with available folor areas from 5,000 square feet to over 200,000 square feet.
Land, however, is another story. The City's East Business Park has over 400 acres of serviced land available for immediate development. Land costs are $20,000 an acre. Like most subsidized business park there are qualifiers for use and restrictions with respect to the timing and size of development, but these are really in place to encourage development and avoid speculation.
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-$30 per square foot (and lower) for quality functional industrial facilities.
Lease rates in Cornwall are amongst the lowest we've seen. The following table provides a range of expected lease costs for currently available larger blocks of industrial/warehouse space.
| INDUSTRIAL/WAREHOUSE LEASE RATES & OPERATING COSTS* |
| Item | Low | Avg. | High |
| Basic Rental Rate |
2.50 |
3.25 |
3.75 |
| Realty Tax |
0.80 |
1.00 |
2.00 |
| 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 Rates |
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 | $4.00 | $5.15 | $6.97 |
All costs are CDN$, based on per square foot of rentable leased space per annum.
*The above figures are based on a 5 year lease of a minimum 25,000 sq. ft. industrial/warehouse building and do not include process utilities. Rents and operating costs vary from property to property and are provided for illustration 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. tenants looking for smaller sized untis can expect to find rental rates in the $5.00 - $7.00 net range.
More Information
RE/MAX Cornwall has qualified and experienced commercial brokers on staff, led by Broker, President, Jamie Cameron and Broker of Record 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 Cornwall Economic Development's web site www.choosecornwall.ca, or contact a development officer directly at (613) 933-0074.