Construction Report

December 2015

ANIXTERPROJECT PROFILE

Vol. 01

Bay 30, 4550 – 112 Avenue SE Calgary, Alberta T2C 2K2

P: 403.444.3590 F: 403.203.0089

www.engelhart-reed.com

The team at Engelhart Reed would personally like to welcome you to the first issue of the ER Construction Report. Our intent is to send this report every quarter and which will contain an overview of the recent projects we have completed, Alberta Building Codes, and other pertinent information to help brokers get deals done, landlords keep their tenants happy and provide our clients with additional construction knowledge. In addition to providing top notch design-build construction services, Engelhart Reed would like to encourage our network to contact us with any construction questions you may have. You are only a phone call away from having the answer! Make sure to check out www.engelhart-reed.com for a complete listing of all of our current projects and photos. We hope you find the information in this report helpful and beneficial to your organization.

WWW.ENGELHART-REED.COM

Welcome to the ER Construction Report

Tod Engelhart

D: (403) 444-3590 ext 222

C: (403) 608-0558

Rob Reed

D: (403) 444-3590 ext 223

C: (403) 999-8797

Intro to HVAC Heating – Ventilation – Air Conditioning.

Heating, Ventilation and Air Conditioning systems are what control the air temperature in buildings, provide fresh air, and drive occupant comfort.

When thinking about air flows into and out of a room or building, remember that inflows have to balance with outflows. If it’s not balanced that’s when issues such as not being able to open doors because of the negative pressure may occur.

When pricing the addition of a new HVAC or MUA (Make-Up-Air) unit for a potential warehouse space, these additional costs must also be considered:

1. Unit Controls2. Structural steel – roof deck reinforcing & possible roof joist reinforcing3. Mechanical & electrical engineered drawings4. Air balancing5. Electrical & Gas Hookups6. Roofing

It is not just the cost of the unit itself that must be accounted for.

WWW.ENGELHART-REED.COM

Industry Pricing

Building Permit Applications

The construction cost data below is of a general nature only and subject to confirmation with respect to specific

circumstances.

There are a number of dynamic factors that play in the current construction market – including the declining value of the Canadian dollar. The weak dollar is affecting such sub-trades as HVAC, flooring, fire protection, drywall and plumbing, as a large amount of their materials and supplies are required to be shipped in from the USA. HVAC equipment has seen an increase as high as 20% in some cases. While many people are assuming construction costs should be decreasing with the current economic situation, the reality is that in some cases they are increasing. Labour costs are currently stable and an increase is not expected this year.

As an example, the average per square foot cost of mid-grade carpet tile (S&I):

The total value of Industrial Improvement Building Permit Applications for Q3 was $13,978,713.00, which is a 42% increase over Q2 applications values.

The total value of Commercial Improvement Building Permit Applications for Q3 was $16,548,075.00 which is an 89% decrease from Q2.

*Commercial and Industrial Improvement defined by the City of Calgary, is any construction project that does not entail a “new” building or project. This may be an addition, interior partition (alternation) or exterior renovations; All-encompassing expect for a new project build. The city defines the difference between commercial and industrial permits, based on their location on the cities Land Use Districts map*

2014 2015

$3.75/ sq ft. $4.50/ sq ft.

WWW.ENGELHART-REED.COM

Oxford Airport Business Park Bay 105, 1820 – 100th Avenue NE Calgary, AB

OFFICE SPACE 11,598 sq ft +/- WAREHOUSE SPACE 85,492 sq ft +/- TOTAL AREA 97,090 sq ft +/-

PROJECT PROFILE

Anixter

A brief overview of work completed in the space:• Complete design build of interior office and warehouse to accommodate Anixter’s requirements• Racking permit application included in TI Build• Completed design and construction including permitting in under 4 months• T5H0 Warehouse lighting and life safety design to suit clients racking requirements • Drive-in ramp & oversized overhead door• Battery charger station • Warehouse ventilation system to accommodate general use operations – 7000 CFM MUA

Anixter is one of thirteen spaces completed by Engelhart Reed for Oxford Properties Group. In total, Engelhart Reed has built out approximately 1.2 Million square feet of office and warehouse space at the Oxford Airport Business Park to date. Anixter is a global distributor of communications and security products, electrical wire and components. The project was completed on time and on budget.

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We selected Engelhart Reed to complete our office/warehouse build out for our new Calgary location, and could

not be more pleased with the end result. From the initial budgeting stage, through the design-build phase, to

the close-out of construction, Engelhart Reed demonstrated the highest level of quality and responsiveness to

our demanding, very time sensitive project. Through the coordination of information, last minute design revisions

and change orders, Engelhart Reed completed all tasks with a high level of expertise, and attention to detail.

Definitely a job well done!Jeff Merrill Corporate Real Estate Manager, Anixter Inc.