MEG Energy Corp. needs less than half the office space it is on the hook for in downtown Calgary after it paused its ambitious growth plan last year.
A new report by Barclay Street Real Estate Ltd. says vacancy in the retail market has risen from 2.7 per cent at the end of 2015 to three per cent in the first quarter of 2016. It says 1.2 million square feet of space is now available, up 116,000 square feet since the fourth quarter of 2015.
The depressed state of the Calgary office market evokes memories of the city’s situation seven years ago. What’s still unknown is if it will recover as quickly this time around. “What is very similar in comparing January 2009 to January 2016 is the amount of inventory in the office market that was under construction,” said Dan Harmsen, vice-president and associate broker for Barclay Street Real Estate, which recently released reports on Calgary’s downtown, Beltline and suburban office markets for the final quarter of 2015.
The fourth quarter of 2015 saw a continuation of uncertain commercial real estate market sentiment and closed the year with a record amount of vacant office space in Calgary's downtown core. A report by Barclay Street Real Estate Ltd. says that over 2015 about 3.9 million square feet of office space in the downtown was returned to the market as the vacancy rate soared by 9.82% year-0ver-year from the fourth quarter of 2014 - finishing 2015 at 17.29%.
Calgary’s retail real estate market remained resilient during 2015 despite the drop in discretionary spending, says a new report by Barclay Street Real Estate. The overall vacancy rate rose to 2.7 per cent, up by 0.4 per cent from 2014. “The major impact on vacancy stemmed largely from successive retail chain store closures with Big Box space, which had been essentially zero for years, suddenly coming to market as Target Canada exited after two years of successive losses and Best Buy began a rebranding campaign that included closing down its sister brand Future Shop,” said the report.
George Larson didn’t begin his career in real estate until 1986 after working in banking and lending services for 22 years. Since then he has sold over $500 million in properties and continues to enjoy making deals for his clients.
The recent Business in Calgary Leaders dinner saluted those in our community who strive to make Calgary the best city on earth in which to live. From home building and land brokering, to restaurants and clothing retail, the list of those honoured this year reads like a who is who in myriad industries.
Downtown Calgary’s commercial real estate market is swinging in favour of tenants as more office space gets freed up in the white-collar heart of the oilpatch. Weak oil prices have caused companies to cut their head counts in recent months, pushing vacancy rates into the double-digits.
In the suburban office market for quarter three, Barclay Street Real Estate highlights that overall vacancy rates have come down, decreasing from 12.67% in Q2 to 11.08%. There has been a tightening of all four quadrants within Calgary with the exception of the NW which saw the only increase in vacancy.
The Calgary Beltline market continues to remain balanced despite an increase in overall vacancy rates from Q2 - up to 9.86 percent from 8.34 percent - with total vacancy now measuring approximately 715,252 square feet (sf) across all building classes. As a result of declining oil prices and global GDP growth rates, Barclay Street Real Estate forecasts that there will now be a slight increase in vacancy for the balance of the year, resulting in a mild downward pressure in rental rates.