Calgary Touted as Having Most Resilient Commercial Real Estate Market in Canada

Posted by Alan Zunec on Friday, April 6th, 2012 at 8:48am.

Calgary’s office vacancy rate reached a mind-blowing 15.7 percent back in 2010’s second quarter. During the first quarter of 2012, that rate went down to 6.1 percent. That is quite the drop from the 2010 numbers, as well as from the 11.5 percent seen during the first quarter of 2011.

The first quarter figure would have been as low as 4.7 percent without the completion of The Bow. This downtown skyscraper brought 1.9 million square feet of space to the table and was responsible for what was a virtual free-fall of the vacancy rate. There will be much shuffling from one building to another when Encana and Cenovus leave their current offices to take up residence in The Bow. Other companies are waiting to backfill the offices they left behind.

The office market in the suburbs also saw a decrease, coming at 8.9 percent this year compared to 13 percent during the same quarter in 2011. During the fourth quarter of that same year, the downtown vacancy rate came in at 5.7 percent and the suburban rate at 9.5 percent. Calgary’s industrial market saw a 4.9 percent vacancy rate in 2012’s first quarter, up a bit from the 4.4 percent seen during the first quarter of 2011 and on par with December of 2011.

Currently Calgary’s commercial real estate market is the most resilient in the nation and it keeps performing well. The city and surrounding areas are experiencing steady job growth, and a promising economy.

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