Calgary Investment Transaction Stats – Q2 2018
Calgary Registers Highest Deal Count on Record in Q2
Q2 2018 registered a total of 153 sales transactions over $1 million, representing a total value of $1 billion
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 Q2 2018. The 153 sales recorded in Q2 marks the highest total of quarterly transactions ever recorded in the Calgary market area.
Source: Altus Group
When compared to Q1 of 2018, Q2 saw growth across all sectors except for residential land. The apartment market was the only sector to not record increases over the second quarter of 2017. The top three performers were the office, industrial, and ICI Land sectors which, together, captured 66% of all the investment dollars in the quarter. In total, 71% of all transactions in Q2 were completed by Canadian private investors.
The office sector recorded 15 transactions worth a total of $306 million. The top office transaction of Q2 2018 was Hines’ purchase of First Tower (411 1st Street S.E.) for $107 million. Also boosting the total for the quarter was Slate Asset Management’s purchase of the Scotia Centre for $95,121,000, a transaction that was agreed upon in late 2017, and closed during this quarter.
The retail sector recorded $149 million in investment, up 43% from Q1 2018 and up 85% from Q2 2017. The transaction count for retail in Q2 2018 was 25, this is the highest recorded number of transactions ever, surpassing the record of 23 in Q4 of 2014.
Q2 2018 saw 36 transactions in the industrial sector, worth $194 million. This represents a 58% increase from Q1 2018 and a 48% increase from the same quarter last year. The 36 recorded transactions represent the second highest number seen for industrial in the Calgary market. According to the Altus Investment Trends Survey, industrial cap rates have remained relatively stable compared to the previous quarter, and are trending slightly downwards.
$166 million was invested in ICI land in Q2 2018. This total was comprised of 45 transactions and amounts to a 15% increase over Q1 and a 79% increase from Q2 2017. Overall ICI land has been trending upwards with each quarterly total surpassing the five year low of $47 million set in Q1 2015. In the residential land sector, 15 transactions were recorded in Q2 2018, worth a total of $122 million. This is a drop from the previous quarter of 43%, and an increase on the same quarter in the previous year by 28%.
“The record number of transactions this quarter demonstrates sustained interest in the Calgary market. It should be noted that the main source of this interest is from private investors, who are capitalizing on a marketplace that has less competition from institutional investors,” noted Ben Tatterton, Manager, 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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