The second quarter of 2019 continues to show that the market favors the landlord. Vacancy rates held steady in Q2, while asking rents rose from $7.09 in the first quarter, to $7.17 in Q2.
The industrial vacancy rate for the first quarter of 2019 has shown a minimal increase to 5.50%, up 0.02% from Q4 2018, which was 5.48%.
“As we review and analyze 2018 Investments Sales activity and results in Calgary, one quote comes to mind: “Your big opportunity may be right where you are now.” by Napoleon Hill. Though 2018 results are better than 2017 and 2016 investment sales numbers, we still have a long way to go. The arrow, however, is pointing in the right direction.”
“Investors came back to Edmonton’s commercial real estate (CRE) investment market and liked what they saw in 2018. Total dollar volume invested exceeded $2.65 billion, driven by renewed interest in ICI Land, plus strong demand for Multi-Residential properties.”
Overall market occupancy equaled 92 percent at year-end 2018, unchanged from a year ago. This confirms that there has been little overall movement in the aggregate market but belies all the activity behind the numbers. The underlying fact is that retail continues to grow, both nationally and locally. We added 650,000 square feet of space in centers over 25,000 square feet this past year, maintained occupancy, and, for the most part, rents. Much of the pain of the last few years is over – store closings have declined, downsizing is still taking place but at a reasonable rate, and retail layoffs have leveled off.
At the end of the second quarter of 2016, the flex market averaged a $8.84 psf triple-net rental rate, which is a significant increase from the second quarter average rental rate in 2015 of $8.16 psf triple-net. The vacancy rate for the second quarter of 2016 sits at 7.1%.
The Richardson/Plano Sub-Market has shown an increase in the direct Class A vacancy from 5.9% in the second quarter of 2016 to 21.3% at the beginning of the second quarter of 2016. Meanwhile, direct weighted average full-service rents increased per square foot from $23.20 to $25.96 per square foot during the same time.
The LBJ Corridor Sub-Market has seen an increase in the Direct Class A vacancy from 22.4% at the end of the second quarter of 2015 to 22.8% at the end of the second quarter in 2016. Average full-service rental rates of Class A space increased per square foot, from $23.98 to $26.40 during the same timeframe.
The North Central Expressway Sub-Market has seen a remarkable decrease in the Direct Class A vacancy from 18% at the end of second quarter 2015 to 13.1% at the end of the second quarter 2016.
The Upper Tollway Sub-Market is currently a hub of office real estate activity in Dallas and has become one of the most attractive sub-markets in the D/FW Metroplex.