Large Transactions Help Calgary Investment Property Totals Bounce Back in 2016

2016 saw a total of 421 sales transactions over $1 million, representing a total investment value of $3.2 billion

CALGARY ‒ Altus Group, a leading provider of commercial real estate services, software and data solutions, today announced the cumulative results for 2016 commercial real estate investment in the Calgary market area. Investment volumes of $644 million occurred in the fourth quarter of 2016, bringing the annual total to $3.2 billion. This represents a 40% increase from the total recorded in 2015.

Graph showing Calgary property transaction dollar volume and number of transactions for all sectors by quarter.

Source:  Altus Group (Q4 2016)

Several sectors saw positive gains which contributed to the increase over 2015. The Retail sector recorded 68 transactions in 2016, totaling $499 million, a 78% increase over investment volumes in 2015. Industrial and ICI Land also saw increases from their 2015 transaction value totals of 32% and 42% respectively.

Decreases were noted in the Residential Land and Hotel sectors. Residential Land saw 60 transactions worth $287 million, a 42% decline in overall investment from 2015. The Hotel sector had no activity until three deals occurred in Q4 totalling $27 million, which is an 85% decrease from the recorded Hotel value in 2015.

The Apartment sector was steady – 38 Apartment transactions worth $286 million were recorded in 2016, similar to the 38 transactions totalling $299 million in 2015.

The largest dollar volume by sector in 2016 belonged to the Office sector, with 24 Office transactions totalling $1 billion. The majority of this value is attributed to two sales: CPPIB’s 50% stake in Centennial Place and Eau Claire Tower and Imperial Oil’s Agreement of Sale for their Quarry Park Campus. These two transactions alone account for $911 million of all Office activity.

 

 Pie chart showing Calgary Q4 2016 property transactions, total dollar volume by sector.

Source:  Altus Group (Q4 2016)

“After property investment volumes in 2015 more reminiscent of 2009/2010, the Greater Calgary market rebounded in 2016. Growing investor and consumer confidence is translating into more activity at the transaction level and this renewed interest in Calgary property is expected to continue through 2017,” noted Paul Richter, Director, Data Solutions at Altus Group.

 

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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 market insight and recognize value on their real estate investments. Headquartered in Canada, we have approximately 2,300 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 securities are traded on the TSX under the symbols AIF and AIF.DB.A.

For more information on Altus Group, please visit: www.altusgroup.com.

 

FOR FURTHER INFORMATION PLEASE CONTACT:

Elizabeth Lambe
Manager, Communications
Altus Group
(416) 641 – 9787
elizabeth.lambe@altusgroup.com

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