Calgary Office Space Getting Scarcer By the Minute

Posted by Alan Zunec on Thursday, December 1st, 2011 at 10:51am.

Companies looking for office space in Calgary in 2012 are not going to have an easy time of it. The Alberta city is expected to have the tightest market in Canada by the end of next year. Class A space is expected to have a vacancy rate of 1.2 percent, which is almost a sold-out situation, according to Cushman & Wakefield’s recent report.

The report notes that this is a definite boom time in Calgary’s office market. Competition for space, and skilled workers to occupy that space, is fierce. Even downtown is seeing an amazing 4.0 percent vacancy rate as of now. Large office spaces are in short supply, and things are not expected to improve for the foreseeable future.

Even the Bow, which won’t open until the second quarter of 2012, is already fully leased. That is 1.9 million feet of space off the market. Just a few short years ago there were fears that the vacancy rate in Calgary would climb to 20 percent. What a difference the resurgence in the oil sands has made.

In truth, much of the space is from oil and gas companies securing future office space in anticipation of future growth. It is likely that companies will turn to suburban markets as the demand tightens in the central core. CB Richard Ellis Ltd recently submitted a report noting this turnabout as a remarkable recovery. Calgary, and Alberta as a whole, is definitely in great shape.

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