Calgary’s overall retail vacancy rate continued to demonstrate remarkable consistency through the third quarter of 2023, remaining settled in the high-three to low-four percent range seen over the previous few years. The primary contributor to Calgary’s vacancy is the vast inventory of street front spaces which have proliferated in recent years as small, local shopping destinations and mixed-use developments have gained favour over power centres.
The Denver office market continues to face demand challenges. As of 23Q3, Denver ranks among the worst performing office markets in the U.S. with a vacancy rate of 15.5%, surpassing levels reached during the Great Recession. A high concentration of tech companies has made Denver even more susceptible to office downsizing as they look for ways to cut expenses in lieu of reducing staff that was difficult to secure amid ongoing labor shortages.
Denver's retail market has staged a quiet, yet strong comeback, giving the sector runway to withstand a potential slowdown in the year ahead. Contributing to this comeback was the significant lift in consumer spending coming out of the pandemic. Denver's retailers now have a fresh set of headwinds to contend with in 2023. High inflation, rising consumer debt, and a high interest rate environment are weighing on purchasing power, creating challenges for local retailers. But today's retail market is entering into this uncertain season from a position of strength.
This retail snapshot of Oklahoma City is a survey of over 300 retail spaces within the Downtown Business Improvement District. Areas included are Midtown, Automobile Alley, West Village, City Center, Deep Deuce and Bricktown. Food and beverage currently dominate downtown.
The retail market, both nationally and locally, appears to be nearing an inflection point that will see the market move from surprising growth to more moderate growth and activity. Since the start of the recovery, retail has gained back all it lost in sales and then some. Occupancy has increased and there has been a significant influx of new tenants. Per CoStar, national retail vacancy sits at 4.2 percent near its all-time low.
Investors continued to demonstrate interest and confidence in the Edmonton market.
Vacancy in Calgary’s Downtown remained relatively steady over the third quarter of 2017, rising by 0.4% to 25%. Q3 proved quiet in comparison to the preceding 11 quarters, posting negative net absorption totaling Downtown Market Beltline Market 193,000 square feet (sf).
Investors continued to demonstrate confidence in the Calgary market through the third quarter of 2017.
The end of the third quarter brings healthy activity from both the sales and leasing market throughout the Calgary area.
AT THE MID-POINT OF 2017, THE EDMONTON MARKET POSTED A FOURTH CONSECUTIVE QUARTER OF RENEWED APPEAL TO COMMERCIAL REAL ESTATE (CRE) INVESTORS. AS A BONUS, 2017 IS WIDELY CONSIDERED THE YEAR ALBERTA WILL SEE ITS ECONOMY ENTER A RECOVERY STAGE. THE SENSE OF OPTIMISM THAT SET IN DURING THE LATTER PORTION OF 2016 CONTINUED AND WAS MANIFEST IN THE MORE THAN $1.08 BILLION BEING INVESTED IN COMMERCIAL PROPERTIES FROM JANUARY THROUGH JUNE.
Bradford Allen is pleased to share with you our 2018 first quarter office market report.This quarter in the downtown market:• Office market activity in River West is officially tracked as the most recent submarket to join the CBD. • Net absorption was positive 720,640 sf. • The direct vacancy rate dropped to 11.85% from 12.1%, and the average gross asking rent decreased to $39.38psf from $40.69psf, both compared to the previous quarter.
Vacancy for Q1/2018 remains at 6.3% and rates were largely unchanged for industrial, with a slight increase from $5.88 SF in Q4/2017 up to $5.92 SF at the end of the first quarter. Demand continues to outweigh supply and the majority of submarkets continue to experience low vacancy rates.
Retail Market Forecasts Continued Growth
Office Market Sees Vacancy Rates Rise Slightly.
Multifamily Market Closes 2017 on a High Note.At the beginning of 2017 most said it was the beginning of the inevitable slowdown; however, as we roll into a new year and look back at our forecast, the market ended up right where we expected. 2017 was not only a solid year in terms of investment activity, it was also a strong year from the owner/investor side. We experienced positive sales volume growth, positive rental growth and even managed to push the occupancy a little higher, a multifamily trifecta. Although the year started off a little shaky with many reports citing pressure on rents and occupancies, the rebound in Oklahoma’s economy was a welcome boost pressing the multifamily market forward.