TCN Worldwide's State of the Market: Western Edition, 2nd Quarter 2016 Prepared by Hugh F. Kelly, PhD, CRE, Consulting Economist to TCN WorldwideIn this edition: –National and Macroeconomic Overview –Regional Conditions in the Western States –Commercial Property Investment Trends
Absorption totaled 27,101 sq. ft. in the First Quarter of 2016, solid numbers for a market which had tens of thousands of square feet come on line due to the Deloitte relocation this spring. We continue to remain cautious with our expectations for properties just out of receivership and anticipate potential volatility as new availabilities are introduced to the Suburban West Shore Marketplace.
Historically speaking, office condo units have traditionally been developed in small quantities in suburban markets and geared towards professional and medical service industries. The office condo concept has created an opportunity for occupiers to own their office space with the advantages of having fixed and clear costs, full control over the design within the premises and, significantly, tax benefits not available leasing tenants.
Over the second quarter of 2016, the vacancy rate in Calgary’s Downtown market reached 21.2%. This represents a record high, comprising 8.8 million square feet of space available for lease within a 41 million square foot (msf) inventory.
THE OVERALL VACANCY RATE IN SUBURBAN CALGARY INCREASED DURING THE SECOND QUARTER TO 21.2%.