This has sent the majority of new construction to the rural municipalities surrounding Regina, where costs are lower and it’s easier to make the numbers work.
A government initiative, the GTH doesn’t face the same financial constraints other industrial ventures do. Land costs average $143,000 per acre, versus $550,000 per acre in the rest of the Regina market. The difference offers a compelling reason to look outside the city.
But the rural municipalities come with a trade-off.
“The taxes are a little less, but so are the services,” Schaefer said. “Outside the city limits, you’re not getting wastewater; you’re going to get stuck with having your wastewater pumped because there’s no sewer connection.”
Colliers, in its own snapshot of the market, indicates just 82,300 square feet of industrial space under construction in Regina.
“While the construction pipeline did increase on a square footage basis in Q2, new supply has yet to be delivered in 2025,” Colliers reported earlier this month. “As such, industrial vacancy rates are expected to remain mostly level or even tighten further in the second half of the year.”
https://www.westerninvestor.com/brit...costs-10986549
Regina industrial market stable amid high construction costs
Population growth, major projects drive demand
The establishment of the Cargill plant at the GTH is a significant boost for the industrial commercial real estate market in Regina,” Avison Young’s report notes.” It not only increases the demand for industrial spaces but also stimulates further development and investment in the region.”
Avison Young says the construction Cargill’s plant has fuelled the purchase of more than 400 acres near the GTH, improving rail and road infrastructure.
Within the city, PTI Transformers Inc. broke ground this spring on an expansion that will give it the extra capacity needed to handle the large transformers energy projects across Western Canada require.
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