By Mario Toneguzzi, Calgary Herald September 27, 2010
Calgary's downtown vacancy rate has climbed to the highest level in the country among major markets but the commercial real estate sector also experienced significant activity in the third quarter "with a frenetic pace of leasing."
A report by CB Richard Ellis Ltd., said the downtown vacancy rate in the city jumped to 14.5 per cent from 12.5 per cent a year ago.
Nationally, the average downtown vacancy rate in the third quarter of this year was 8.4 per cent, up from 7.8 per cent for the same period in 2009.
"Over the last three months, Calgary's downtown office market was the busiest it has ever been," said Greg Kwong, executive vice-president, regional managing director, CB Richard Ellis Limited, Alberta. "It's important to note that the office vacancy figure is slightly misleading; the addition of Eighth Avenue Place this quarter increased the vacancy figure quite dramatically. If leasing activity continued at this pace, in the absence of new supply, Calgary would have been poised to post a single-digit downtown office vacancy rate early next year."
CBRE said improvement in the Canadian economy during the first half of 2010 fuelled a similar recovery pattern in the country's commercial real estate market, with sales and leasing activity picking up steam through the third quarter. The combination of limited new construction, available mortgage funds and low interest rates created near-perfect conditions for the commercial real estate investor to re-enter Canada's market, bolstering both the office and industrial sectors, according to the National Office and Industrial Trends Third Quarter Report.
"There have been no surprises this quarter," said John O'Bryan, vice-chairman, CB Richard Ellis Limited. "The recovery and rebound of the commercial real estate market in the third quarter is tracking as expected, and we anticipate that commercial real estate activity will continue to improve through to year-end, albeit, at a slower pace.
"Pent-up demand due to the uncertainty of the market from the start of the year is now starting to make its way through the system, with available space being absorbed at appropriate rates."
mtoneguzzi@calgaryherald.com
A report by CB Richard Ellis Ltd., said the downtown vacancy rate in the city jumped to 14.5 per cent from 12.5 per cent a year ago.
Nationally, the average downtown vacancy rate in the third quarter of this year was 8.4 per cent, up from 7.8 per cent for the same period in 2009.
"Over the last three months, Calgary's downtown office market was the busiest it has ever been," said Greg Kwong, executive vice-president, regional managing director, CB Richard Ellis Limited, Alberta. "It's important to note that the office vacancy figure is slightly misleading; the addition of Eighth Avenue Place this quarter increased the vacancy figure quite dramatically. If leasing activity continued at this pace, in the absence of new supply, Calgary would have been poised to post a single-digit downtown office vacancy rate early next year."
CBRE said improvement in the Canadian economy during the first half of 2010 fuelled a similar recovery pattern in the country's commercial real estate market, with sales and leasing activity picking up steam through the third quarter. The combination of limited new construction, available mortgage funds and low interest rates created near-perfect conditions for the commercial real estate investor to re-enter Canada's market, bolstering both the office and industrial sectors, according to the National Office and Industrial Trends Third Quarter Report.
"There have been no surprises this quarter," said John O'Bryan, vice-chairman, CB Richard Ellis Limited. "The recovery and rebound of the commercial real estate market in the third quarter is tracking as expected, and we anticipate that commercial real estate activity will continue to improve through to year-end, albeit, at a slower pace.
"Pent-up demand due to the uncertainty of the market from the start of the year is now starting to make its way through the system, with available space being absorbed at appropriate rates."
mtoneguzzi@calgaryherald.com
Read more: http://www.calgaryherald.com/business/real-estate/Downtown+Calgary+vacancy+rate+highest+Canada/3584696/story.html#ixzz10veidbUQ
No comments:
Post a Comment