Calgary Investment Transaction Stats – Q1 2018
Investment in Calgary Land Markets Dominate Q1 2018
Q1 2018 registered a total of 143 sales transactions over $1 million, representing a total value of $713 million
Calgary ‒ Altus Group, a leading provider of commercial real estate services, software and data solutions, today announced the results for commercial real estate investment in the Calgary market area in Q1 2018. The quarter saw 143 transactions worth $713 million. When compared to Q1 2017, investment volume was down 30% while deal velocity was up 4%.
Source: Altus Group
Land transactions combined contributed 50% towards overall investment, a ratio regularly seen in the Vancouver and Toronto markets. Residential land posted 31% and ICI land 19%, totaling $360.2 million in 83 transactions in the first quarter. The largest residential land transaction was Metropia’s acquisition of Trinity Hills, which involved the sale of 24 acres for $43,272,955. Overall residential land investment increased by 120% from the same quarter last year.
The ICI land sector saw a 36% increase from Q1 2017. The largest ICI land transaction in Q1 was improved property acquired for its re-development potential; AIMCo acquired a 0.597 acre property at 4th Avenue and 6th Street S.W. in downtown Calgary for $14.2 million.
The retail sector posted a gain of 60% year-over-year. The highest value retail transaction in Q1 2018 was Co-Op’s purchase of 5809 Macleod Trail S.W. for $26,375,000, representing a price per square foot of $551.
The industrial market recorded $122 million of investment activity in 22 transactions, down 15% from the two-year quarterly average of 26 transactions per quarter. Fiera Properties’ acquisition of two Calgary properties accounted for nearly 25% of the overall investment in the greater Calgary industrial sector. The investment by Fiera also included two buildings in Edmonton, with an overall portfolio price of $61,421,200.
Investment in the first quarter was primarily driven by local and national private investors. Investor sentiment in the region remains steady, according to the Altus Group Investment Trends Survey, with cap rates experiencing only slight changes; decompression in the industrial market and slight compression in the apartment sector.
“2018 has started off on a strong note in the Calgary area as overall investment activity continues trending upward over the past twelve quarters. The increasing ratio of land to improved property acquisitions may be indicative of investors and developers positioning for the next market upswing,” noted Paul Richter, Director, Data Solutions, at Altus Group.
ABOUT DATA SOLUTIONS
Data Solutions connects the Canadian real estate industry through the delivery of data with unparalleled breadth, integrity and relevance. We cover new homes, investment transactions and commercial market inventory in key markets, and also provide intelligence on the national housing market and consumer home buying and borrowing patterns.
Our solutions are used by real estate industry stakeholders to gain market intelligence, identify and validate opportunities, benchmark, strategically plan, manage risk and more.
Data Solutions is part of Altus Analytics, the software and data solutions business of Altus Group, where our focus is to empower real estate clients and partners to work collaboratively to enhance decision making, drive performance and optimize transactional efficiency. Our solutions enable firms to better organize and manage data and connect with the right information and analytics to help them gain a complete picture of real estate assets, portfolios and transactions.
For more information on Data Solutions, please visit www.altusgroup.com/datasolutions.
ABOUT ALTUS GROUP LIMITED
Altus Group Limited is a leading provider of independent advisory services, software and data solutions to the global commercial real estate industry. Our businesses, Altus Analytics and Altus Expert Services, reflect decades of experience, a range of expertise, and technology-enabled capabilities. Our solutions empower clients to analyze, gain insight and recognize value on their real estate investments. Headquartered in Canada, we have approximately 2,500 employees around the world, with operations in North America, Europe and Asia Pacific. Our clients include some of the world’s largest real estate industry participants across a variety of sectors. Altus Group pays a quarterly dividend of $0.15 per share and our shares are traded on the TSX under the symbol AIF.
For more information on Altus Group, please visit: www.altusgroup.com.
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