By Altus Group | November 6, 2017

Calgary Flash Report 2017

The Calgary office leasing market is faced with a long, slow climb back to what could be considered a balanced market situation.

Commercial investment & land market

  • Total investment property sales volume for 2016 in the Calgary Market Area recovered to $3.12 Billion ending three consecutive yearly declines.
  • The Office market posted both the largest absolute volume and the biggest year-over-year increase.
  • The Retail and Industrial sectors saw solid improvement, combining to add another $1.1 Billion to total transaction volumes.
  • The Residential Land market fell back by 48% to its lowest level since 2011, while ICI Land sales posted a 42% increase.

Industrial & office markets

  • The Calgary office leasing market is faced with a long, slow climb back to what could be considered a balanced market situation.
  • The weakness in the Calgary economy, combined with strong levels of new supply, had contributed to a sharp increase in the industrial availability rate.
  • With little new supply added in the past year, and positive absorption, the availability rate is starting to ease back down.
  • Calgary net rental rates for new tenants leasing industrial space continue to fall, and are now more line with Toronto.

Residential development market

  • New condominium apartment sales in Calgary are beginning to recover.
  • Total new multi-family sales in the Calgary Market Area continued to slide in 2016, with a total of just over 2,300 sales for the year.
  • While new townhouse sales continued to trend down, new condominium apartment sales posted a strong 41% increase over the first half of 2016.
  • The inner city market has been the most impacted by the downturn in new condominium apartment sales.

Homebuyers

  • Potential first-time buyers more hesitant on heels of tighter lending criteria.
  • More than half of Calgary home buyers in recent years bought using high-ratio mortgages, most of which would require insured mortgages.
  • First-time buyers have been an important component of the Calgary housing market, accounting for about half of end user buyers in recent years.
  • Immigrats also play an important role: 4 in 10 end user homebuyers in recent years were not born in Canada.
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