Following up to Buffalo Niagara Real Estate Primer for Canadian Companies – part I, below are additional frequently asked questions:
Q1: Can we reduce our ‘real estate costs’ by expanding into a less costly market, without jeopardizing our profits or business model?
A1: For many companies it is a resounding yes.
Average net asking sale price ($/sf) industrial real estate:
- Toronto GTA (Greater Toronto Area) : $113.57 psf. *
- Buffalo/ Erie County: $36.60 psf. ** = savings of approx. 68% per square foot.
Average land cost for fully serviced industrial land:
- Toronto GTA: approximately $597,000/acre*
- Buffalo/Erie County: approximately $45,000/acre = savings of approx. 92% per acre.
Q2: Can we potentially reduce not just our real estate costs but our ‘overall occupancy costs’ including but not limited to utility costs, real estate taxes, sales taxes, employee wages and costs, through available economic incentive programs?
A2: Yes! In the United States and specifically in the Buffalo Niagara region companies of all different sizes can apply and potentially qualify for incentives programs to assist with utility costs, real estate taxes, sales taxes, employee wages and costs. Most of these programs’ main criteria are based on the number of new jobs being created, the projects’ costs and plans, and the specific industry the company operates in. Companies need to complete an application process and potentially compete for some of these programs.
by Carolyn Powell, Business Development Manager