Calgary office vacancy moves further into uncharted territory as nearly a third of space sits empty
Many office buildings in downtown Calgary remain empty as the vacancy rate dropped to a new low of 32.7 per cent in the second quarter of this year.
in a report from CBRE, Canada’s leading commercial real estate service firm, year-to-date analysis shows over 1.5 million square feet of office space has returned to market, making this the worst half-year of fundamentals on record.
CBRE says the Calgary office market recorded 266,000 square feet of negative net absorption this quarter as vacancy advanced further into record highs.
Calgary lags behind other major Canadian cities where most are currently experiencing a gradual increase in downtown office leasing.
A recent resurgence in oil prices has given Calgary’s prominent energy industry new life but it isn't bolstering the office market as many companies no longer require the same number of office workers due to streamlined approaches to operations that began during the pandemic.
The suburban office vacancy rate rose a further 140 basis points to 25.5 per cent in Q2, breaking the record high set in the first quarter of this year.
Despite these negative fundamentals, the planned reopening of Alberta following pandemic-related restrictions promises new activity in Calgary that is expected to carry on throughout the year but may also lead to negative absorption as companies resize and shift their workplace strategy.
GROWTH IN INDUSTRY AND TECH
However, it was not all bad in Calgary's economic and office outlook. The CBRE report makes mention of the fact the technology sector continues to gain momentum in the downtown core, providing green shoots of much needed optimism.
Most recently, Blackstone-backed global IT services company Mphasis announced that it will be setting up a Canadian headquarters in Calgary with intentions to create upward of 1,000 local jobs over the next two to three years.
The report also shows growth in the industrial market for the first time in the last two years.
The industrial market recorded over two million square feet of positive net absorption for a second consecutive quarter. The 4.1 million square feet gain this year represents the largest two-quarter total in over 15 years.
Industrial space availability rate reached 6.6 per cent this quarter, a level not seen since before the 2015 recession.With little speculative development slated for completion in 2021, the availability rate is only expected to further contract.
CTVNews.ca Top Stories
Canada Disability Benefit needs to be safeguarded from clawbacks, MPs unanimously agree
The federal government needs to safeguard the incoming Canada Disability Benefit from clawbacks and do more to ensure it actually meets the stated aim of lifting people living with disabilities out of poverty, MPs from all parties agree.
Security guard shot, seriously injured outside of Drake's Toronto mansion
A security guard working at Drake’s Bridle Path mansion in Toronto was seriously injured in a shooting outside the residence early Tuesday morning, police said.
King Charles too busy to see son Prince Harry during U.K. trip
Prince Harry will not be seeing his father King Charles during his current visit to Britain as the monarch will be too busy, Harry's spokesperson said on Tuesday.
opinion Tom Mulcair: Turfing Poilievre from House a clear sign of desperation by Trudeau Liberals
When Speaker Greg Fergus tossed out Pierre Poilievre from the House last week, "those of us who have experience as parliamentarians simply couldn't believe our eyes," writes former NDP leader Tom Mulcair in his column for CTVNews.ca
Apple unveils new iPad Pro with 'outrageously powerful' AI-powered chip
Apple is hoping its latest iPad lineup will breathe new life into its sluggish tablet market. In a pre-recorded live streamed event from its Cupertino, California headquarters, the company introduced the latest versions of its iPad Pro and iPad Air tablets, and an all-new Apple Pencil Pro.
Your body needs these three forms of movement every week
Movement is movement, right? Not exactly. Here’s what your body is looking for in addition to your morning walk or yoga session, according to experts.
Testifying in hush money trial, adult film actor Stormy Daniels describes first meeting Trump
Stormy Daniels took the witness stand Tuesday in the hush money trial of former U.S. president Donald Trump, prepared to testify about a sexual encounter the porn actor says she had in 2006 that resulted in her being paid off to keep silent during the presidential election 10 years later.
'It looked so legit': Ontario man pays $7,700 for luxury villa found on Booking.com, but the listing was fake
An Ontario man says he paid more than $7,700 for a luxury villa he found on a popular travel website -- but the listing was fake.
Boy Scouts of America changing name for first time in 114 years, aiming for inclusivity
The Boy Scouts of America is changing its name for the first time in its 114-year history and will become Scouting America. It's a significant shift as the organization emerges from bankruptcy following a flood of sexual abuse claims and seeks to focus on inclusion.