April Terreri learns a few secrets about the success of Shepard Development Corporation, including its philosophy not to build on spec, but to have value-added tenants ready to occupy new office and commercial buildings.
For Shepard Development Corporation, slow and steady is how the company is winning against the threatening economy. The company is currently involved in three major development and construction projects in Calgary—despite the downturn. “Our growth is very carefully planned, so the buildings we develop and construct are never left with space that hasn’t been leased,” explains Christie Simpson, vice president of the Calgary-based company. The reason for this is that Shepard will build nothing on spec; its business philosophy is to have value-added tenants ready to occupy buildings ready for occupancy. “We believe in strong covenant tenants who will bring value to the properties we develop.”
For over 67 years the Simpson family has been providing development and construction services to businesses in the province of Alberta through the CANA Group of Companies, comprising Shepard Development Corporation, CANA Construction and ACE Construction Company Ltd. Over the past 46 years the Simpson family has owned and managed CANA.
One major project Shepard is currently developing is the Shepard Regional Centre at the intersection of Deerfoot Trail and 130th Avenue in Calgary. “This is a retail power center of over 1 million square feet of retail development,” reports Simpson. The project sits on a parcel of 280 acres, which Shepard had owned for quite some time. “We began developing this center in 1996, so it has taken us over 15 years to build, but it has been done in a way that made sense for the area and for the retailers in Calgary, as it grew along with the population of the trade area.”
The center opened incrementally since 1996, and Simpson expects it to be fully completed by Christmas 2011. “We approached this project recognizing that this was going to be a long-term development plan and knowing that you cannot build over 1 million square feet of retail space in just a matter of a few years,” explains Simpson. “This project has been a major success for us because the space continued to be occupied immediately upon completion.”
It’s an outdoor mall with big-box powerhouse tenants like SuperStore, Canadian Tire, Safeway, Home Depot and Lowe’s. “We received land-use approval for this project in the late 1980s because of its importance to the area as a major commercial and employment node for southeast Calgary,” reports Simpson. “This is now the primary shopping area for the region.”
One of the challenges was laying out the development so that it interfaces seamlessly with the city, notes Simpson. “We worked with the city on a number of things including extending 130th Avenue, which is a major thoroughfare in Calgary. We did this to help build a relationship with the city and to ensure traffic in the area was able to move smoothly. We also worked with the city in the late 1970s to plan for an interchange at Deerfoot Trail that would provide direct access into the center. This access has been a huge factor in the success of the center.”
Another success relative to this project is the fact that Lowe’s Canada will open one of its first stores in western Canada at the center. “Lowe’s is currently under construction now on a 14-acre parcel of land,” Simpson says. “This was a huge accomplishment for us in getting such a notable retailer with no presence in western Canada prior to this.”
The second of Shepard’s major projects is a 30-acre suburban office campus located within the Shepard Regional Centre. “This campus will have direct access to a light rail transit station,” notes Simpson. The project will offer 850,000 square feet of office space once completed. Construction is pending, awaiting a major tenant to finalize contracts. “We’re ready to begin construction once we have a tenant.” Plans call for about nine office buildings and a hotel.
Jacksonport Industrial Park is Shepard’s third major project. Construction is expected to begin sometime this year. “This industrial park is located in the northeast part of the city adjacent to the Calgary International Airport,” reports Simpson, who hopes that the proximity to the airport will help draw light industries related to the aviation industry. The project sits on a 160-acre parcel, with 100 acres of developable land for light industrial companies and 10 acres of retail development opportunities for establishments like restaurants and coffee shops to serve the employees within the industrial park.
“We’re in the initial phases of servicing the parcel with infrastructure facilities like water and sewer,” says Simpson. She adds that Calgary’s location lends itself to attract many distribution companies and warehousing facilities to locate there. “Calgary has grown to become a large distribution center for western Canada because of its proximity to major consumer markets.” The first tenants are expected to take occupancy in 2012.
Simpson notes that Shepard has been active in providing commercial, retail and industrial construction to the surrounding region for decades. “As a very small Calgary firm, we’ve been able to successfully deliver one of the largest power centers in Shepard Regional Centre,” she says. “We’ve been able to kick-start this project from the ground up, despite being a small firm. This is primarily because of our values of not pushing the development past its capabilities. One of our biggest assets is our in-house construction capability through CANA Construction. This allows us to have the ability to control construction costs while building this many buildings, which are typically not built by a developer’s contractor. It also comes from our upfront dealing with our vendors and purchasers.”
CANA Group has been recognized for its reliability for eight consecutive years and is one of Canada’s 50 Best-Managed Companies. CANA’s versatility allows its companies to provide services under stipulated lump-sum contracts, fixed-fee contracts, design-build services and project management services. Since 1969 it has completed over $2 billion of construction management projects. “Our firm-but-fair approach has earned numerous repeat clients and has helped build strong relationships with our design partners and sub-trade partners,” Simpson says. She reports that the majority of CANA’s senior management team has over 30 years’ experience in the construction industry. The group’s Canadian Construction Association Gold Seal certification recognizes the team’s experience and educational achievements in construction. www.cana.ca
