WHY EDMONTON?WHY EDMONTON? | DISCOVER CANADA’S GATEWAY TO THE NORTH © 2018 CBRE, LTD. | 2 LEADER IN ECONOMIC GROWTH ECONOMIC STRENGTH5.2% GDP GROWTH 2017 SECOND FASTEST GROWING

© 2018 CBRE, LTD. | 1 CBRE RESEARCH

WHY EDMONTON?DISCOVER THE GATEWAY TO THE NORTH

Image courtesy of Jeff Wallace Photography

WHY EDMONTON? | DISCOVER CANADA’S GATEWAY TO THE NORTH © 2018 CBRE, LTD. | 2

LEADER IN ECONOMIC GROWTH

ECONOMIC STRENGTH

5.2% GDP GROWTH2017SECOND FASTEST GROWING AMONG MAJOR METROS(VS. 3.5% CANADA)

$62,437 GDPPER CAPITA 2017SECOND MOST PRODUCTIVE CITY IN CANADA30% HIGHER THAN NATIONAL AVERAGE

$19,739 RETAIL SALES PER CAPITA 2017SECOND LARGEST AMONG MAJOR METROS

$59,118 PERSONAL INCOMEPER CAPITA 2017SECOND HIGHEST IN CANADA12% HIGHER THAN NATIONAL AVERAGE

$1,144.92 AVG. WEEKLY EARNINGS2017SECOND HIGHEST IN CANADA15.7% HIGHER THAN CANADIAN AVERAGE

18.7% EMPLOYMENT GROWTH2008 - 2017LARGEST EMPLOYMENT EXPANSION OVER THE PAST 10 YEARS10% HIGHER THAN NATIONAL AVERAGE

7.6% PROJECTED JOB GROWTH2018 - 2022(4.9% CANADIAN AVERAGE)

Source: Statistics Canada, Conference Board of Canada, CBRE Research


TOP COMPANIES IN EDMONTON


ALBERTA ENERGY

LARGEST INDUSTRIAL ENERGY SERVICES PARK IN CANADA

OVER 500 BUSINESSES WITH EXPERTISE IN ENERGY, ADVANCED MANUFACTURING AND DISTRIBUTION & LOGISTICS

EMPLOYS NEARLY 25,000 HIGHLY SKILLED TRADES AND PROFESSIONAL WORKERS

NISKU ENERGY PARK

CANMET ENERGY, CANADA’S LEADING ORGANIZATION FOR SCIENTIFIC EXPERTISE ON CLEAN ENERGY TECHNOLOGIES

INNOTECH ALBERTA TEAMS COMPLETE APPLIED RESEARCH PROJECTS IN THE OIL & GAS SECTOR

DEVON RESEARCH CENTRE

3RD LARGEST CRUDE OIL RESERVES IN THE WORLDALBERTA REPRESENTS 98% OF CANADA’S TOTAL OIL RESERVES

EDMONTON IS THE CLOSEST MAJOR CENTRETO ALBERTA’S OIL SANDS, MAKING IT A STRATEGIC BASE FOR MANY INDUSTRIES THAT SUPPORT THE OIL AND GAS SECTOR

LARGEST UNCONVENTIONAL LIGHT SHALE OIL POOL IN CANADADUVERNAY FIELD IN WESTERN ALBERTA

(3.4 BILLION BARRELS OF MARKETABLE LIGHT OIL AND 6.3 BILLION BARRELS OF NATURAL GAS LIQUIDS)

150 DRIVERLESS TRUCKSTO BE ADDED TO SUNCOR’S FLEET, LOWERING OPERATING EXPENSES AND INCREASING PRODUCTIVITY

OVERALL CANADIAN OIL PRODUCTION TO GROW TO5.1 MILLION BARRELS/DAY IN 2030(UP FROM 3.85 MILLION BARRELS/DAY IN 2016)

$160,000

$140,000

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

$02009 2010 2011 2012 2013 2014 2015 2016 2017 2018e

ENERGY INDUSTRY REVENUE (MILLIONS)

ALBERTA OIL

Source: ARC Energy Institute, Leduc County, PETRO LMI, CBRE Research


ALBERTA’S

TOP EXPORT MARKETS

$100.7 BILLIONALBERTA EXPORTS IN 2017

CHEMICAL MANUFACTURING

TOP NON-ENERGY EXPORTSIN 2017

CROP PRODUCTION

FOOD MANUFACTURING

PRIMARY METAL MANUFACTURING

MACHINERY MANUFACTURING

SOUTHKOREAMEXICO

USA CHINA JAPAN

ALBERTA REPRESENTS 20%OF CANADA’S EXPORTSIN THE LAST 10 YEARS[ [

ALBERTA EXPORTS

Source: Government of Canada


EDMONTON TOP COLLEGES & UNIVERSITIES

ALBERTA’S WORKFORCE IS HIGHLY EDUCATED, WITH THE HIGHEST RATE OF POST-SECONDARY ATTAINMENT (INCLUDING DIPLOMAS, DEGREES,

AND CERTIFICATES) IN CANADA. IN TOTAL, THE SIX POST-SECONDARY INSTITUTIONS PROVIDE TR AINING AND EDUCATION TO

117,000 STUDENTS IN EDMONTON .

EDMONTON LEADS THE WAY

LARGEST APPRENTICESHIPTRAINER IN CANADA

NORTHERN ALBERTA INSTITUTE OF TECHNOLOGY

WORLD’S TOP100 RANKED UNIVERSITIES

UNIVERSITY OF ALBERTA(2017 QS WORLD UNIVERSITY RATING)

NORTHERN ALBERTA INSTITUTE OF TECHNOLOGY 48,500 STUDENTS

UNIVERSITY OF ALBERTA37,830 STUDENTS

MACEWAN UNIVERSITY19,000 STUDENTS

117,000 TOTAL

COLLEGE STUDENTS

DEEP TALENT POOL

OVER THE PAST FIVE YEARS, THE NUMBER OF APPLICANTS TO ALBERTA’S POST-SECONDARY SYSTEM

INCREASED EVERY YEAR. THIS GROWTH WAS DRIVEN PRIMARILY BY INCREASES IN APPLICANTS FROM

OUTSIDE CANADA.

VISA POST-SECONDARY STUDENT ENROLLMENT HAS MORE THAN DOUBLED OVER THE PAST 10 YEARS.

IN THE 2015-16 ACADEMIC YEAR, VISA STUDENTS ACCOUNTED FOR 8.3% OF ALL STUDENTS AT POST-

SECONDARY INSTITUTIONS IN ALBERTA

COMMITMENT TO EDUCATION

Source: Government of Canada 2017

TOP UNIVERSITIES


HEALTH & TECHNOLOGY

UNIQUE NANOTECHNOLOGY COLLABORATION HUB IN A $52.2 MILLION, 215,000 SF FACILITY

NATIONAL INSTITUTE FOR NANOTECHNOLOGY

DEEPMIND’S FIRST EVER INTERNATIONAL ARTIFICIAL INTELLIGENCE RESEARCH OFFICE IN EDMONTON

THE ACTIVE-AURORA PROJECT: CANADA’S FIRST WIRELESS CONNECTED VEHICLE TEST-BED NETWORK TO EXCHANGE INFORMATION IN REAL-TIME WITH ROADSIDE EQUIPMENT

ARTIFICIAL INTELLIGENCE HUB

233 HECTARES CENTRE FOR ADVANCED WASTE PROCESSING AND RESEARCH FACILITIES WHERE WASTE IS TRANSFORMED INTO USEFUL RESOURCES

EDMONTON WASTE MANAGEMENT CENTRE

FROM MEDICAL DEVICES, PHARMACEUTICALS TO AGRICULTURAL BIOTECHNOLOGY, EDMONTON IS HOME TO OVER 265 ESTABLISHED MULTINATIONALS AND LOCAL START-UPS

ALBERTA HEALTH SERVICES (AHS) IS THE LARGEST PROVINCE-WIDE FULLY INTEGRATED HEALTH SYSTEM PROVIDING SERVICES TO OVER FOUR MILLION ALBERTANS. THE HEALTH AUTHORITY COLLECTS A LARGE AMOUNT OF CLINICAL AND CORPORATE DATA, WHICH PROVIDES A UNIQUE OPPORTUNITY TO EXAMINE DISEASE CLUSTERS, PRACTICE VARIATION AND HEALTH OUTCOMES

$4.5 BILLION PROVINCE WIDE FUNDING TO RENOVATE HEALTH INFRASTRUCTURE

$400 MILLION FOR A NEW HOSPITAL IN SOUTH EDMONTON (COST ESTIMATE $2 BILLION)

ALBERTA HEALTH SUPER LAB (ESTIMATE $325 MILLION )

HEALTH CITY INITIATIVE

INNOVATION STARTS HERE


EDMONTON BY THE NUMBERS

67.1% EMPLOYMENT RATESECOND AMONG MAJOR CMAS

73% LABOUR FORCE PARTICIPATION RATE(2017) SECOND LARGEST OF ALL CMASCANADA: 65.8%

YOUNGER THAN AVERAGE37.8 AVERAGE AGE

(CANADIAN AVERAGE 41 IN 2016)

30.1%EDMONTON’S SHARE OF MILLENNIALS IN 2016

2ND LARGEST OF ALL CMAS

STRONG POPULATION GROWTH

8.5%GROWTH FORECAST

SECOND FASTEST

218,188MIGRATION

(2008-2017)

79,786FORECASTED MIGRATION

(2017-2021)

DEMOGRAPHIC PROFILE

Source: Canada 2016 Census


• EDMONTON INTERNATIONAL FRINGETHEATRE FESTIVAL

• EDMONTON FOLK MUSIC FESTIVAL

• A TASTE OF EDMONTON

• EDMONTON INTERNATIONAL STREETPERFORMERS FESTIVAL

• EDMONTON DRAGON BOAT FESTIVAL

• NEXTFEST

• EDMONTON PRIDE FESTIVAL

• SYMPHONY UNDER THE SKY

• ICE ON WHYTE FESTIVAL

• FREEWILL SHAKESPEARE FESTIVAL

• K-DAYS

• WHYTE AVENUE ART WALK

THE FESTIVAL CITYOVER 55 ANNUAL FESTIVALS AND EVENTS

88KM OFRIVER VALLEY PARKTHE LARGEST URBAN PARK IN NORTH AMERICA

22 TIMES LARGER THAN CENTRAL PARK[ [QUALITY OF LIFE

7 PROJECTS THAT ARE RESHAPING EDMONTON’S DOWNTOWNTHE ICE DISTRICT

ROYAL ALBERTA MUSEUM

STANLEY A. MILNER LIBRARY

ALLARD HALL, MACEWAN UNIVERSITY

ARTS HABITAT EDMONTON: ARTSCOMMON AND ARTISTS QUARTERS

EDMONTON OPERA CENTRE

WINSPEAR CENTRE FOR MUSIC

AFFORDABLE LIVING2-BEDROOM RENTAL: $1,21622% CHEAPER THAN VANCOUVER13% CHEAPER THAN TORONTO

NEW HOUSING CONSTRUCTION PRICE: $526,69350% CHEAPER THAN TORONTO65% CHEAPER THAN VANCOUVER

Source: CMHC

Source: Edmonton Economic Development Corporation


PROJECTS UNDER CONSTRUCTION PROPOSED PROJECTSLINE 3 PIPELINE REPLACEMENT

TRANS-MOUNTAIN PIPELINE EXPANSION

VALLEY LINE LRT

STANTEC HEADQUARTERS BUILDING

MARRIOTT HOTEL AND THE LEGENDS

$7.5 BILLION

$7.4 BILLION

$3.2 BILLION

$500.0 MILLION

$350.0 MILLION

FRONTIER OIL SANDS MINE

MACKENZIE GAS PIPELINE PROJECT

INTER PIPELINEPROPANE DEHYDROGENATION PLANT

CANADA KUWAIT PETROCHEMICALPROPANE DEHYDROGENATION FACILITY

YELLOWHEAD TRAIL UPGRADES

$20.6 BILLION

$16.2 BILLION

$3.8 BILLION

$3.5 BILLION

$1 BILLION

$84.9 BILLIONUNDER CONSTRUCTION[ [$114.5 BILLION

PROPOSED

PEACE RIVER

GRANDE PRAIRIE

EDSONHINTON

WHITECOURT

BANFF

RED DEER

MEDICINE HAT

LETHBRIDGE

LLOYDMINSTERLEDUCSPRUCE GROVE

ST. ALBERT FORT SASKATCHEWAN

COLDLAKE

FORTMCMURRAY

EDMONTON

CALGARY

NORTHEAST

CENTRAL

EAST CENTRAL

NORTHWEST

WEST CENTRAL

SOUTH CENTRAL

SOUTH

PROJECTS BY INDUSTRYOIL AND GAS

PIPELINES

INFRASTRUCTURE

INDUSTRIAL

POWER

INSTITUTIONAL

TOURISM / RECREATION

MIXED-USE

RESIDENTIAL

COMMERCIAL

RETAIL

$91.2 BILLION

$39.3 BILLION

$19.2 BILLION

$13.2 BILLION

$8.2 BILLION

$7.5 BILLION

$6.4 BILLION

$6.2 BILLION

$4.2 BILLION

$3.3 BILLION

$0.6 BILLION

TOTAL: $199.4 BILLION

CENTRAL &NORTHEAST

CONSTRUCTIONACTIVITY

65.0%

ALBERTAREPRESENTS

IN THE LAST10 YEARS

30.0%OF CANADA’S INVESTMENTS

Source: Government of Alberta, as of January 4th, 2018

NORTHERN ALBERTA INVESTMENTS


ALBERTA’S INDUSTRIAL HEARTLAND

OVER $35 BILLION INVESTED TO DATE

$15 BILLION PROPOSED INVESTMENTOVER THE NEXT DECADE

PRODUCES 43% OF THE NATIONALBASIC CHEMICAL MANUFACTURING

SERVES AS LOGISTICS & MARKET CENTREFOR MULTIPLE PIPELINE TERMINALS

582 KM2 OF INDUSTRIAL ZONED LAND

ALBERTA’S INDUSTRIAL HEARTLAND IS ONE OF THE WORLD’S MOST ATTR ACTIVE LOCATION FOR CHEMICAL,

PETROCHEMICAL AND OIL AND GAS INVESTMENT. THE PROXIMITY TO COMPETITIVE ABUNDANT NATURAL RESOURCES, POLITICALLY

AND FISCALLY STABLE GOVERNMENT, AND ACCESS TO SKILLED LABOUR, HAS POSITIONED THE HEARTLAND AS CANADA’S LARGEST

HYDROCARBON PROCESSING REGION.

THE HEARTLANDFRACTIONATION CAPACITY(360 MBPD)

PETROLEUM REFINING (450 MBPD EXPANDING TO 600 MBPD)

BITUMEN UPGRADING(250 MBPD)

PROCESSING REGION

Source: Alberta Industrial Heartland


Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. REVISED: JULY 2017

MIGUEL MARTINEZSr. Research Analyst+1 780 917 [email protected]

FOR MORE INFORMATION ABOUT THIS REPORT OR CBRE RESEARCH:

CBRE EDMONTON 10180 - 101 Street | Suite 1220 | Edmonton, AB T5J 3S4

Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE. CBRE and the CBRE logo are service marks of CBRE,

Image courtesy of Katz Group

DAVE YOUNGExec. Vice President/Managing Director+1 780 917 4625 [email protected]

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WHY EDMONTON?WHY EDMONTON? | DISCOVER CANADA’S GATEWAY TO THE NORTH © 2018 CBRE, LTD. | 2 LEADER IN ECONOMIC GROWTH ECONOMIC STRENGTH5.2% GDP GROWTH 2017 SECOND FASTEST GROWING