Calgary office vacancy rate declining as business community returning to city's core
After years of decline, demand for Calgary's downtown commercial real estate is showing signs of returning to life.
A new report released by Avison Young says the downtown office vacancy rate now sits at 27.2 per cent, down 2.5 per cent since the last quarter of 2021.
The report also shows leasing rates will continue to face upward pressure this year because of flight to quality and high inflation, which basically means more businesses trying to move to better spaces to try to attract and maintain their workforce.
In trying to have modernize workplaces, Class AA building vacancy rate is now at 14.8 per cent, down 2.9 per cent since the last quarter of 2021.
"We're really happy about the new report that just came out, because it is showing what I think we've been witnessing over the last couple of months," said Mark Garner, executive director of the Calgary Downtown Association.
"Normally, Tuesdays and Wednesdays were our busiest days. And we're starting to see now that it's, we're getting back to that Thursday, Friday, Saturday, type increase."
Garner attributes the increase to some workers coming back to downtown to work full-time and new businesses looking to lease office spaces.
The report found the last quarter of 2022 marked one of the strongest leasing environments in the Calgary office sector, and the vacancy decreases may continue in the first part of the new year.
"I think there is a very much a clear theme of return to office, whether it's three days a week or five days a week for certain companies," said Adam Hayes of Avison Young.
"I think we'll see positive absorption in 2023."
With files from Timm Bruch
CTVNews.ca Top Stories
Quebec nurse had to clean up after husband's death in Montreal hospital
On a night she should have been mourning, a nurse from Quebec's Laurentians region says she was forced to clean up her husband after he died at a hospital in Montreal.
'Anything to win': Trudeau says as Poilievre defends meeting protesters
Prime Minister Justin Trudeau is accusing Conservative Leader Pierre Poilievre of welcoming 'the support of conspiracy theorists and extremists,' after the Conservative leader was photographed meeting with protesters, which his office has defended.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.
What is changing about Canada's capital gains tax and how does it impact me?
The federal government's proposed change to capital gains taxation is expected to increase taxes on investments and mainly affect wealthy Canadians and businesses. Here's what you need to know about the move.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Pilot reported fire onboard plane carrying fuel, attempted to return to Fairbanks just before crash
One of the two pilots aboard an airplane carrying fuel reported there was a fire on the airplane shortly before it crashed and burned outside Fairbanks, killing both people on board, a federal aviation official said Wednesday.
'One of the single most terrifying things ever': Ontario couple among passengers on sinking tour boat in Dominican Republic
A Toronto couple are speaking out about their 'extremely dangerous' experience on board a sinking tour boat in the Dominican Republic last week.
7 surveillance videos linked to extortions of South Asian home builders in Edmonton released
The Edmonton Police Service has released a number of surveillance videos related to a series of extortion cases in the city now dubbed 'Project Gaslight.'
Ukraine uses long-range missiles secretly provided by U.S. to hit Russian-held areas, officials say
Ukraine for the first time has begun using long-range ballistic missiles provided secretly by the United States, bombing a Russian military airfield in Crimea last week and Russian forces in another occupied area overnight, American officials said Wednesday.