Is there a glimmer of hope in Calgary's struggling downtown office market? "Interesting things happened in the downtown market over the first three months of the year; notably in leasing trends at the smallest end of avail able options," said a report by Barclay Street Real Estate. "A significant decrease in spaces of 2,000 square feet occurred while spaces of greater than 10,000 square feet increased."
While the full recovery of Calgary’s office market may still be a long way off, the sense of panic that once might have been present has dissipated.
“From this office and from my peers and my clients on a going forward basis, it’s a positive mindset driven by the new entrepreneurs that are going to come up in the next one to 10 years,” said Andrew King, associate vice-president of Barclay Street Real Estate, which just issued its first-quarter report on the Calgary office sector.
In a report Tuesday, Barclay Street Real Estate said that Calgary's overall downtown office vacancy rate increased by 0.7 of a percentage point to 24.2 per cent in the first three months of the year.
Sales of Edmonton commercial real estate soared by more than $500 million in 2016 compared to a year earlier as investors poured $1.81 billion into the Alberta capital.
Suburban office vacancy rose 0.3 per cent during the fourth quarter of 2016 to 22.6 per cent, according to a recent Barclay Street Real Estate report.
During the second half of 2016, rays of light began breaking through the two-year gloom and had a positive impact on the Calgary commercial real estate market, according to a new report by Barclay Street Real Estate.
Calgary commercial experts say local retailers are becoming increasingly savvy in their fight for market share, challenging the traditional brick-and-mortar concept of doing business in favour of a pop-up model.
Competitive rates, low vacancy may benefit long run
During the fourth quarter of 2016, Beltline vacancy decreased by 1.8%% to end the year at 17.9%, says a new report by Barclay Street Real Estate. The quarter also experienced net positive absorption of 135,000 square feet, bringing full-year absorption to negative 41,000 square feet. Barclay says this is a significant improvement over 2015 when 429,000 square feet was returned to the market.
Calgary's industrial market shows signs of turning the corner