AFTER A QUARTER-PERCENT DECREASE IN VACANCY DURING THE THIRD QUARTER, THE BELTLINE EXPERIENCED A 2.5% INCREASE IN VACANCY TO CLOSE THE YEAR. Negative absorption of 174,834 sf has driven the vacancy rate up to 17.33%.
THE FOURTH QUARTER OF 2015 REPRESENTED A CONTINUATION OF UNCERTAIN, ARGUABLY NEGATIVE, MARKET SENTIMENT IN CALGARY. The downward trend in oil prices that began in late 2014 continued – albeit at a progressively slower pace - through 2015 and negatively affected office leasing activity. The impact has been particularly dramatic in the Downtown market as it continues to represent the epicentre of energy industry headquarters.
THE OVERALL VACANCY RATE IN SUBURBAN CALGARY CONTINUED TO INCREASE OVER THE FOURTH QUARTER, RISING FROM 16.21% IN Q3 TO 18.33% IN Q4. This change is reflective of 152,609 sf of negative absorption in addition to the completion of several suburban office projects which each contain significant amounts of vacant space. The timing of new office project deliveries has been a key element of the Suburban office story. In total, more than 800,000 sf of new product was introduced over the course of 2015.
TCN Worldwide's State of the Market: Central Edition, 4th Quarter 2015 Prepared by Hugh F. Kelly, PhD, CRE, Consulting Economist to TCNIn this edition: –Overview of National Economic Context –Regional Conditions in the Eastern States –Commercial Property Investment Trends
TCN Worldwide's State of the Market: Eastern Edition, 4th Quarter 2015 Prepared by Hugh F. Kelly, PhD, CRE, Consulting Economist to TCNIn this edition: –Overview of National Economic Context –Regional Conditions in the Eastern States –Commercial Property Investment Trends