Availability in Calgary’s Beltline office market increased ever-so-slightly during the final quarter of 2023. A spike in sublease availability resulted in approximately 20,000 square feet (sf) of negative net absorption. The new space introduced to the market was primarily available for sublease and located in polar opposites of the size spectrum: pockets measuring 2,000 – 4,000 sf and in large 10,000+ sf spaces. With such a small net change in overall occupied space, total occupied space in the Beltline remained largely consistent with the previous quarter at 75.7%.
Overall availability – and particularly the vacant component – of Downtown office space decreased through the fourth quarter of 2023 on approximately 395,000 square feet of positive absorption. Calgary’s Downtown office market is indeed getting healthier as observed by the ongoing, albeit slow, increase in staff returning to their offices on Mondays and Fridays.
Overall availability – and particularly the vacant component – of Calgary’s suburban office market decreased slightly through the final quarter of 2023, posting a 1% drop due to approximately 288,000 square feet of positive absorption. We saw tenants making leasing decisions based on two primary considerations: finding locations that make the to-and-from-work commutes easier for staff and acting on necessity to secure spaces in the size ranges they wanted while still available, especially in A-Class properties.
Calgary’s retail vacancy rate remained stable through the fourth quarter of the year, showing no overall change despite significant activity and changes within its constituent parts. Several new developments were added to our inventory, with notable additions including the final phase of The Shops at Buffalo Run, plus smaller retail plazas like New Brighton Landing and mix-use developments such as Shawnessy Station and Solo on 4th.
Investors’ interest in the Calgary market remained remarkably strong through the final quarter of 2023, during which an additional 88 transactions closed at or above $1 million, for a total of $719.2 million. For the year, total dollar volume invested reached just under $3.4 billion. While this represents a decrease of approximately $153 million or 5% percent year-over-year, the negative calculation is due entirely to the 2022 sale of The Bow (sale announced in 2021, finalized in 2022) inflating last year’s investment numbers. Removing that outlier, we see investment up year-over-year (y-o-y) across the board.
The Mexico City Metropolitan Area Inventory for Class A+ and A Office buildings closed the 1Q of 2018 with a total inventory of 6.4 M SQM or 69.2M SQFT. This represents an increase of 11% equivalent to 603k sqm or 6.5 M SQFT.
Absorption over the fourth quarter totalled positive 86,000 square feet (sf).
Absorption for the fourth quarter totaled negative 41,000 square feet (sf).
The Beltline market witnessed a net negative absorption totaling 72,000 square feet (sf) during the fourth quarter.
After another quarter characterized by strong leasing activity, the industrial market’s positive trend continued with vacancy decreasing by another 0.50% in the fourth quarter to 6.52%.
Three quarters of the way through the year, 2019 has been better than expected. DFW growth has continued to increase. DFW still struggles to find labor, and that is the biggest strain on the economy at the present time. There is a true war for talent, and we continue to monitor this closely. Trade tariffs and slowed oil & gas activity continue to be a concern; however, there is enormous interest from coastal markets on the relocation & investment fronts from (New York, Boston, Los Angeles, San Francisco). The economy continues to grow, and we feel the fundamentals for Dallas-Fort Worth are positive and the 4th quarter of 2019 will be exceptional.
Three quarters of the way through the year, 2019 has been better than expected. DFW growth has continued to increase. DFW still struggles to find labor, and that is the biggest strain on the economy at the present time. There is a true war for talent, and we continue to monitor this closely. Trade tariffs and slowed oil & gas activity continue to be a concern; however, there is enormous interest from coastal markets on the relocation front and the investment from (New York, Boston, Los Angeles, San Francisco), the economy continues to grow, and we feel the fundamentals for Dallas-Fort Worth continue to be positive and the 4th quarter of 2019 is expected to be exceptional.
The first half of 2019 showed little change in the Oklahoma City office market, but what change occurred was fairly positive. Vacancies fell from 20.1% to 19.3% and absorption of space totaled 128,000 square feet.
Oklahoma City real estate is known for its relative stability and slow but steady growth. We typically don’t see the cyclical volatility nor the overexuberance of other markets. The numbers for the first half of the year reflect this even as retail nationally and locally is undergoing transformational change.
Current multi-tenant industrial vacancy for the Oklahoma City metro area now stands at 16.96%, down from 20.31% in mid-year 2018. These swings seem to be the new normal – multi-year strong absorption and rent growth periods followed by multi-year double-digit vacancy and relative quiescence (a kinder term to use around your developer friends than “stagnation”), culminating in eight to ten-year cycles overall.
TCN Worldwide's State of the Market: Western Edition, 3rd Quarter 2015 Prepared by Hugh F. Kelly, PhD, CRE Consulting Economist to TCNIn this edition: –Overview of National Economic Context –Regional Conditions in the Western States –Commercial Property Investment Trends
The Scottsdale Office market ended the second quarter 2015 with a vacancy rate of 15.8%, which was slightly lower over the previous quarter. Net absorption totaled positive 42,390 square feet and rental rates ended the second quarter at $23.29, an increase over the previous quarter. No buildings were delivered, but 239,189 square feet are still under construction at the end of the quarter.
The Scottsdale retail market experienced a slight improvement in market conditions in the second quarter 2015. The vacancy rate went from 7.3% in the previous quarter to 7.5% in the current quarter. Net absorption was negative (38,078) square feet, thus creating an increase in vacant space. Quoted rental rates increased from first quarter levels, ending the second quarter at $20.24 per square foot per year. No buildings were delivered in the second quarter but 172,689 square feet are still under construction at the end of the quarter.
The Scottsdale Industrial (Northeast Ind) submarket ended the second quarter 2015 with a vacancy rate of 9.5%. The vacancy rate increased since the previous quarter, with net absorption totaling a negative 35,131 square feet in the second quarter. Vacant sublease space also increased in the quarter and rental rates ended at $11.32, an increase over the previous quarter.
A Complete Analysis of Denver Metro & Surrounding MarketsNumbers - Locations Vacancies - Rates