Edmonton’s commercial real estate (CRE) market was awash with investor activity during 2023. Tracking sales equal to or exceeding $1 million, the number of sales increased among each of the office, retail, industrial, multi-residential and ICI/ residential land asset classes, driving year-overyear transaction numbers up by 18%. Total dollar volume increased to more than $3.02 billion, a substantial 36% boost compared to investment in 2022.
Despite the ongoing softening the industrial market is experiencing at both the national and local levels, there are few reasons for pessimism regarding the long-term health of the sector. Numerous sources of data show leasing velocity slowing and vacancies climbing across the country, but in many ways this cooling represents a return to normalcy after years of pandemic related upheaval.
MODERATE MARKET ACTIVITY AMID HIGH UNCERTAINTY: In Q3/23, Chicago’s CBD occupancy levels and gross asking rates remained relatively unchanged from the prior quarter. The office market’s direct vacancy rate was 19.8%, while the average gross asking rate held at $44 p.s.f. Absorption levels turned negative this quarter at -432,000 square feet, resulting in year-to-date absorption levels at -933,000 square feet.
Investors’ interest in the Calgary market remained quite strong through the third quarter of 2023. During the quarter, 85 transactions closed at or above $1 million, for a total of $468.8 million. To September 30th, total dollar volume invested reached $2.56 billion.
The theme of Q3 was ‘cautious optimism’, with some activity taking place as tenants continued seeking the best-appointed spaces Calgary’s Downtown has to offer, but at a slower pace than during the previous quarter. The primary drivers of quarter-overquarter vacancy reduction were sublease space takeback and inventory reduction as several office-to-residential conversion projects under the City’s Downtown Development Incentive Program (DDIP) are underway or set to begin in the near future.
Residential Land, Multi-Residential and Industrial sales led Calgary’s commercial real estate investment market in a continued recovery during 2017. Multi-Residential and Residential Land investments both grew more than one-third year-over-year, demonstrating the health and strength of the Greater Calgary Area.
Edmonton’s commercial real estate (CRE) investment market was remarkably stable during 2017, with total dollar volume down just 2.9% year-over-year. There was a game of musical chairs among some asset classes; office investment dominated the year while industrial investment faded. Retail stayed put.
The Mexico City Metropolitan Area Inventory for Class A and A+ office buildings closed the 4Q of 2017 with a total office inventory of 6.3 million square meters. This represents an increase of 10% equivalent to 607 thousand Sq.M.
At the close of the fourth quarter of 2017, the Metropolitan Area of Mexico City’s Industrial Market recorded an inventory of 9.5M Sq.M. of industrial ships class A, mainly in the submarkets of Cuautitlan (19%), Tultitlan (17%) and Tepotzotlan (13%).
At the end of 2017, Calgary’s overall retail market reflected the onset of the economic recovery and benefited from several corporate expansions.
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.
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.
The first half of 2018 brought expected results for the Oklahoma City Central Business District with increased vacancy due to the addition of the BOK Park Plaza Building to available inventory and negative absorption of 84,000 square feet. However, there are continued signs of improvement in the suburbs as 157,000 square feet was absorbed in those submarkets. The net absorption for the entire market was a positive 73,000 square feet; the first positive absorption total in the past seven semi-annual reports.
The past twelve months have seen a rise in multi-tenant industrial vacancy from 17.63% in 2017 to 20.13% in 2018.
The second quarter saw a slight increase in vacancy from 6.3% in Q1, to 6.4% in Q2, indicating that the market continues to move forward at a healthy pace.