Darren Abrahamson

Darren: 403.813.7758 |

CALGARY OFFICE SECOND QUARTER 2017


Due to lower rents and tenant inducements, a flight-to-quality within the city core has improved vacancy in AA properties, such as Eighth Avenue Place, while lower class buildings suffer.

 

As a result of merger and acquisition activity earlier this year, potential consolication of downtown office space could move overall vacancy to approximately 30.0%

 

CALGARY INDUSTRIAL SECOND QUARTER 2017


As oil production in Alberta rises, Calgary's manufacturing sector will recover as well adn is projected to see an average annual output growth of 3.1% in 2017 and 2018.

 

This quarter saw an increase in overall deal velocity. Growing demand for inventory saw the availability rate compress 50 bps quarter-over-quarter to 9.3% overall, reaching the market's lowest level in four quarters.

 

Leasing activity remains bifurcated by size. For example, this quarter, activity for properties exceeding 50,000 sq ft was quite active, driven by transportation and distribution-type tenants. Whereas, leasing activity for properties less than 10,000 sq ft continued to remain very limited.

 

Construction activity remains soft while the market continues to adjust to the significant development cycle that unfolded prior to the energy downturn.

 

Should market conditions continue to improve, we anticipate Calgary's availability rate to hover around the 9.0% for the remainder of the year.

 

Click here to see the full Q2 Office and Industrial report here.

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The Greater Calgary Office market ended the first quarter 2017 with a vacancy rate of 14.9%. 

The vacancy rate was up over the previous quarter, with net absorption totaling negative (22,037) square feet in the first quarter. 

Vacant sublease space decreased in the quarter, ending the quarter at 4,387,104 square feet. 

Rental rates ended the first quarter at $34.25, a decrease over the previous quarter. 

A total of four buildings delivered to the market in the quarter totaling 136,349 square feet, with 4,159,370 square feet still under construction at the end of the quarter

 

Click here to view the full report

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The Greater Calgary Industrial market ended the first quarter 2017 with a vacancy rate of 8.0%. 

The vacancy rate was up over the previous quarter, with net absorption totaling negative (81,026) square feet in the first quarter. 

Vacant sublease space decreased in the quarter, ending the quarter at 748,573 square feet. 

Rental rates ended the first quarter at $9.70, a decrease over the previous quarter. 

A total of two buildings delivered to the market in the quarter totaling 172,629 square feet, with 526,711 square feet still under construction at the end of the quarter.

 

Click here to view the full report

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The Greater Calgary retail market experienced a slight decline in market conditions in the first quarter 2017. 

The vacancy rate went from 2.2% in the previous quarter to 2.5% in the current quarter. 

Net absorption was negative (33,255) square feet, and vacant sublease space increased by 20,670 square feet. 

Quoted rental rates decreased from fourth quarter 2016 levels, ending at $25.11 per square foot per year. 

A total of 10 retail buildings with 154,062 square feet of retail space were delivered to the market in the quarter, with 2,011,821 square feet still under construction at the end of the quarter.

 

Click here for the full report.

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The May 2017 Vacancy Report is now available!

 

Be sure to call or email Darren with any questions you may have about any of our Commercial Listings.

Not seeing what you want? We can help you find it.

Have something to sell? Make sure you give us a call!

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Calgary’s economy is expected to strengthen as oil prices gradually rise.


The pace of Calgary’s economic recovery will be slow, given an equally gradual rise in oil prices.

In the latter half of 2016, prices began to stabilize and increase slightly. This trent will continue into 2017 according to many market prognosticators.


Economic output will increase by 2.0%, which is below the national average. In turn, a modest increase in employment is forecast. Similarly tepid advances in retail consumption and housing starts are forecast for 2017. By 2018, Calgary’s economy is expected to strengthen as oil prices gradually rise. The main risk to the moderately positive outlook is the prospect of an extended oil price slump.


For the Full Calgary Specific Economic Outlook and Market Fundamentals Click HERE and skip to Page 49


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There is increased optimism within Calgary's local business community due to three factors:

  • OPEC's agreement to cut oil production by 1.2 million barrels per day
  • A weak Canadian dollar paired with lower operating costs
  • Recent pipeline approvals

However, increased shale production in the US has the potential to put a ceiling on WTI oil prices and Calgary's economic rebound.

 

Read more from the Canada Market Outlook, 2017 here.

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The  February 2017 Vacancy Report is now available!

 

Be sure to call or email Darren with any questions you may have about any of our Commercial Listings.

Not seeing what you want? We can help you find it.

Have something to sell? Make sure you give us a call!

 

Click here to view the report

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The  January 2017 Vacancy Report is now available!

 

Be sure to call or email Darren with any questions you may have about any of our Commercial Listings.

Not seeing what you want? We can help you find it.

Have something to sell? Make sure you give us a call!

 

Click here to view the report

 
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Calgary 2016 Third Quarter Commercial Real Estate Investment Update

 

Click here to view the report

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The  December Vacancy Report is now available!

 

Be sure to call or email Darren with any questions you may have about any of our Commercial Listings.

Not seeing what you want? We can help you find it.

Have something to sell? Make sure you give us a call!

 

Click here to view the report

 
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  • Commercial investment and Land
  • Commercial Leasing
  • Residential Development
  • Homebuyers

Click Here for Report

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The  November Vacancy Report is now available!

 

Be sure to call or email Darren with any questions you may have about any of our Commercial Listings.

Not seeing what you want? We can help you find it.

Have something to sell? Make sure you give us a call!

 

Click here to view the report

 
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The October Vacancy Report is now available!

 

Be sure to call or email Darren with any questions you may have about any of our Commercial Listings.

Not seeing what you want? We can help you find it.

Have something to sell? Make sure you give us a call!

 

Click here to view the report

 
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Calgary Office Market...

Not all office buildings are created equal...

September 2016 Calgary Office Update

 

 

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The September Vacancy Report is now available!

 

Be sure to call or email Darren with any questions you may have about any of our Commercial Listings.

Not seeing what you want? We can help you find it.

Have something to sell? Make sure you give us a call!

 

Click here to view the report

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The July Vacancy Report is now available!

 

Be sure to call or email Darren with any questions you may have about any of our Commercial Listings.

Not seeing what you want? We can help you find it.

Have something to sell? Make sure you give us a call!

 

Click here to view the report

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Good Morning

 

Just some interesting market updates I thought I would share with you........

 

Are we coming up off the bottom in Calgary ?

 

With the resurgence in price of oil and specifically futures / confidence appears to be increasing, I have also noticed this in recent weeks with clients and other agents.

 

An Interesting read 

 

http://oilpro.com/post/24791/oil-posts-4th-straight-monthly-gainbut-closes-lower-ahead-opec-me?utm_source=DailyNewsletter&utm_medium=email&utm_campaign=newsletter&utm_term=2016-06-01&utm_content=Article_4_txt

 

Not sure if we will see a further improvement in Oil by q4 16 or q1 17 but .........

 

Cap rates % - net income valuation % Return based on perceived risk / return by Investors.

 

Industrial - 6.0% trending level

Apartment - 5.0% trending upward

Retail - 6.0% trending upward

Office - 6.5% trending level 

Land - stable

 

Have a great day !

Rgds

Darren

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The June Vacancy Report is now available!

 

Be sure to call or email Darren with any questions you may have about any of our Commercial Listings.

Not seeing what you want? We can help you find it.

Have something to sell? Make sure you give us a call!

 

Click here to view the report

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The April Vacancy Report is now available!

 

Be sure to call or email Darren with any questions you may have about any of our Commercial Listings.

Not seeing what you want? We can help you find it.

Have something to sell? Make sure you give us a call!!

 

Click here to view the report.

 

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