EXCLUSIVE: Betting big on Alberta’s industrial market, Vancouver-based RCG Group has launched construction of a 328,000-square-foot warehouse in Rocky View County — its largest Calgary-area project to date — without securing a tenant. 

Building Gateway 290 on spec is a bold move amid signs the region’s red-hot industrial sector is beginning to cool. But despite rising vacancies and softer leasing activity, RCG remains bullish on Calgary and Rocky View.

Gateway 290, in the High Plains Industrial Park in the Balzac area, is a "flagship" project that further solidifies the company’s Alberta presence.

RCG Group, a private real estate investor, developer and operator, has been active in British Columbia for over 50 years and expanded into Alberta in 2016. It has a portfolio of 27 commercial and industrial properties totalling 2.74 million square feet across Western Canada and the U.S.

“We take a disciplined approach; we don’t chase growth for growth’s sake. That said, if the fundamentals hold, Alberta is a market we’d have no hesitation increasing our presence in,” Arya Ghodsi, the firm's VP, real estate Services, told RENX.

Slowing activity, but strong fundamentals

He said the Calgary industrial market continues to experience low vacancy, rising rents and lower land / development costs, which support solid investment assumptions. Expanding into Calgary and Rocky View gives RCG geographic diversification from B.C. while capturing higher yields and growth opportunities.

“Together, these fundamentals and diversification benefits make Calgary and Rocky View attractive growth markets for RCG,” he explained.

Gateway 290 features:

• 328,723 square feet with prominent full-height glass corner design;
• clear height of 40-feet-plus for maximum cubic storage and racking efficiency;
• loading flexibility with 34 dock doors (expandable by 25) plus two drive-in doors; and
• parking and yard consisting of 68 trailer stalls, secured truck yard, and 190 car stalls (expandable by 90).

“Gateway 290 has been designed with the modern industrial user in mind. Flexibility, efficiency, and sustainability are built into the DNA of the project,” said Harold Goodwyn, managing director of RCG, calling it a "flagship" property.

RCG a commercial, industrial firm

RCG focuses on industrial and commercial real estate, including modern class-A industrial, logistics, warehouse / distribution, mixed-use and retail assets.

“Our business has always been rooted in creating long-term value through disciplined investing and hands-on operations. We are not just owners; we’re active partners in developing and managing best-in-class real estate,” Goodwyn said.

The company’s portfolio includes:

• British Columbia: 18 properties totaling 980,000 square feet, comprised of industrial, retail and mixed-use assets;
• Alberta: six industrial properties totaling 1,620,000 square feet (including Gateway 290 upon completion);
• Western U.S.: three industrial properties totaling 230,000 square feet;
• Land: Parcels of developable land in both Surrey and Richmond in Greater Vancouver.

In the Calgary area, its portfolio consists of three industrial properties in Calgary (683,500 square feet) and two in Rocky View (608,500 square feet). Once Gateway 290 is completed, Rocky View will total three properties (936,500 square feet).

“We will reassess our position in Alberta, specifically Calgary and Rocky View, once the Gateway 290 project is completed and fully leased. Upon completion, the Alberta portfolio will be solidified, ensuring we remain active in the market for the long term. If market fundamentals (land, zoning, demand, costs, etc.) remain favourable, we would have no issue increasing our presence,” Goodwyn added.

Calgary industrial market moderates

Tiffany Duzita, the firm's VP, acquisitions and development, said after years of rapid growth, Calgary’s industrial market is moderating with slower leasing and occasional negative absorption. Vacancy and availability are rising slightly, though limited new supply could push rates back down if absorption improves.

She said builders are focusing on pre-leased or build-to-suit projects instead of speculative developments. High capital costs, interest rates and global uncertainties are slowing new projects.

“We’re seeing a more balanced market emerge. The frenzy of the last few years has cooled, but the fundamentals remain intact,” she said.

Gateway 290 is in a strategic location adjacent to Calgary with direct access to the Queen Elizabeth II Highway, the Stoney Trail ring road, plus a short drive to downtown, the airport and rail, making it a prime logistics hub.

Duzita said Rocky View County offers significantly lower property taxes and no business tax, reducing operating costs and attracting large industrial users.

“This location combines unbeatable logistics access with real cost advantages for tenants. It’s no surprise that many of Canada’s largest retailers and distributors are already here,” she said.

CBRE marketing Gateway 290

Michael Hoffman, managing director, CBRE Calgary, and his team are leading the marketing of Gateway 290. 

“The development is located in the iconic High Plains Industrial Park in Balzac. The commitment major warehouse occupiers have made to the park make the development of Gateway 290 a no-brainer at a time when there is almost no development on the horizon," he said. "CBRE is tracking the lowest amount of speculative construction since 2017, with very little new inventory set to come on in the first two quarters in 2026.

“The project has been built with flexibility to accommodate users from 54,000 square feet all the way up to 328,000 square feet at 40-feet clear. The project is designed with several sustainability features notably solar panel-ready infrastructure for the roof and EV rough ins for both civilian and trailers.

“High Plains Industrial Park has attracted users such as Walmart, Rona, Home Depot, Walmart, Gordon Food Service. It's also the new home for Dollarama which is under construction on the largest facility by footprint ever built in Western Canada at 1.7 million square feet.”

The park will have 12 million square feet under roof by the end of 2026, Hoffman said, and has become centre ice for Western Canadian distribution. 

“Gateway 290 will benefit from proximity to these occupiers in addition to the proximity to transportation companies in the park such as Bison Transport, Canada Cartage, Charger Logistics and Triple 8 Transport. The focus will really be on attracting the third-party logistics companies and vendors who cater to and benefit from alignment with these large users and carriers.”

Diminishing new supply available

Building Gateway 290 on spec was a strategic decision.

“We saw in the marketplace there was a lot of product either on the market or being built, and we’ve seen that starting to get slowly absorbed over last year until the end of 2024 and into 2025," Duzita said. "As we were looking at the data both the supply and demand side, we saw that there was a void in the marketplace of where absorption was projected to still continue but the supply was diminishing.

“We knew that if we could start construction this year, which we started in June, and a completion around next summer, we could hit the marketplace in a very good time period where there would be a lot more absorption and very little new supply on the marketplace where we could take advantage of having a brand new building.

"It’s a big risk to go on a spec building but we felt that was an advantage to us."