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Overview | Saskatoon | Prince Albert | Lloydminster | Yorkton | Battlefords




Studies

The Battlefords SK

General Real Estate Market - January 2009
The City of North Battleford and the Town of Battleford are situated on the Yellowhead Highway in the central northwest area of the province, located approximately 140 km northwest of Saskatoon and 137 km southeast of Lloydminster on the Alberta border. With a combined population of just under 17,000, the Battlefords is the province's fifth largest metropolitan community with a trading area of approximately 62,000.

The population of the Battlefords saw a moderate but steady growth up until the mid-1980s then stabilized. The local economy is directly influenced by the agricultural and oil field industries, both of which can have significant fluctuations due to world market conditions. The past 2 years has seen a 2% population increase according to city officials. They say that job creation and building construction permits were the highest in 20 years.

The city's economy struggled in the mid-1990's, but has seen a resurgence over the past decade, a trend expected to continue, according to the City's Economic Development Office. They suggest that construction activity will continue to be strong as various businesses position themselves for expansion and growth. Now that twinning of the Yellowhead Highway from Edmonton to Saskatoon has been completed the Battlefords are positioned to become a transportation hub for the oilsands industry.

The Gold Eagle Casino has become significant to North Battleford's economy. The casino reportedly attracts $12 million tourist dollars a year to the City and is a major employer with 330 workers. The 2007 completion of the adjoining 125 room Lodge and Convention Centre with a 10,000 square foot conference and convention facility should further bolster this contribution.

The Battlefords Tribal Council is also proposing construction of several facilities near the casino. A shopping mall is in the planning stages for an area north of the casino. A performing arts centre, a child education/pre-school centre, and a First Nations museum are also being proposed for the site.

1. Real Estate Market The level of construction is a good measure of economic activity.

City of North Battleford Construction Stats
Year 2008 2007 2006 2005
Housing Starts in the CMA (City & area) 107 87 35 20
Building Permits in Millions (City only) $23.6 $28.2 $9.7 $17.9
Source: City of North Battleford Website and CMHC


Three of the more significant retail developments are the Canadian Tire expansion to approximately 50,000 sq.ft., the Wholesale Club expansion to approximately 70,000 sq.ft. and the new Wal-Mart which is approximately 105,000 sq.ft. Peavey Mart then moved into the former Wal-Mart space.

The CMHC October 2008 survey of the apartment rental vacancy is an annual snapshot of the number of vacant suites at a specific date and does not represent an annual amount of vacancy. They found 8 vacant suites out of 744 (1.0% vacancy) and they indicate that the average rent rose to $506/month up from $475 last year.

CMHC Vacancy Rates
Apartment Structures Of Three Units Or More
Survey Date Oct 08 Oct 07 Oct 06 Oct 05 Oct 04 Oct 03
Vacancy 1.0% 0.6% 4.4% 11.8% 9.7% 10.1%
Source: CMHC 2008 Saskatchewan Rental Market Report

2. Economic Background
The Battlefords are located on the Trans Canada Yellowhead Highway, the major route connecting Saskatoon and Edmonton which is now a fully twinned highway. The city is also on Provincial Highway #4, a major north/south artery extending north to Meadow Lake, La Loche and eventually Fort McMurray and to the south to Rosetown, Swift Current and the American border.

The Battlefords are surrounded by an established and extensive mixed farming community with diversification headed towards organic crops, herb production and large-scale hog production. Large heavy crude oil reserves are being explored and developed within a 160 km radius of the city. There are 21 major employers (over 50 workers) in the city, with the most significant being the Saskatchewan Hospital, a 650-bed psychiatric institution with a staff of over 500.

Agricultural industries include the Saskatchewan Wheat Pool Livestock Division (trading $40 million/annum of livestock), the Cargill Grain canola seed terminal, the CanGro feed mill, and Maple Leaf Meats bacon processing facility is the largest of its kind in Western Canada, employing around 350 people. Phoenix Rotary Spike Harrows manufactures agricultural machinery and there are a number of farm implement dealers.

Retail and commercial services are favourable in North Battleford. There are two shopping centres, the Territorial Place in the northwest quadrant of the city and Frontier Mall on the Yellowhead Highway in the southeast. Wal-Mart recently opened a new freestanding store just to the north of its former location and Canadian Tire, Home Hardware and Sobeys are parts of these malls. No vacancy figures are available for retail and commercial space in the city.

Vacancy in the central core area is moderately substantial. Many of the older buildings in the central core have not seen any renovation or upgrading for years. Some of the retail-oriented businesses left to the peripheral mall locations or to strip retail locations on major traffic arteries. A downtown revitalization has commenced with the demolition of some existing properties for the development of the "King Street Station". The first building is an 14,000 sq.ft. Liquor Board store which was opened in 2000. This project is hoped to eventually see a number of buildings, both office and retail developed around a central square area.

Social facilities include schools, parks and hospitals, as well as fine recreational facilities for hockey, swimming, curling, golf and other sports, with good fishing, hunting and skiing within an 80 km radius.

In summary, the outlook for the city is positive at this time. Growth in the value-added agricultural, manufacturing and retail sectors solidify the Battlefords as the trading centre for the central northwest, a trend expected to continue, particularly while there is high oil and gas activity.

Brunsdon Junor Johnson is a real estate appraisal firm providing a wide range of appraisal and consulting services, with the primary market being the north central half of Saskatchewan.


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Updated January 28th, 2009 by Ron


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