Demand continues to surge
By Mario Toneguzzi, Calgary Herald October 4, 2010 7:27 AM
Managing Director Joe Binfet of Colliers International.
CALGARY - Calgary's industrial real estate market continues to show impressive signs of strength with a third consecutive quarter of declining vacancy rates.
Commercial real estate firm Colliers International in Calgary says the vacancy rate for the industrial real estate market has dropped to 4.82 per cent in the third quarter of this year. The decline is due primarily to the activity in the large bay - 50,000 square feet plus - market.
In the second quarter the vacancy rate was 5.36 per cent. It was 5.89 per cent in the first quarter of this year. "We are seeing upward pressure on rental rates as fewer options are available to tenants and landlords are seeing more demand for space," said Joe Binfet, managing director of Colliers International in Calgary.
"There is an unusually high volume of pending deals in the large bay market. As a result vacancy will continue to decline. We expect to see four per cent vacancy as early as the first quarter of 2011."
Binfet said distribution and transportation companies are ramping up and putting products in place.
"This bodes well for the retail sector," he said. "(It's a) good time for the development community to step up and build as demand continues to surge."
mtoneguzzi@calgaryherald.com
Commercial real estate firm Colliers International in Calgary says the vacancy rate for the industrial real estate market has dropped to 4.82 per cent in the third quarter of this year. The decline is due primarily to the activity in the large bay - 50,000 square feet plus - market.
In the second quarter the vacancy rate was 5.36 per cent. It was 5.89 per cent in the first quarter of this year. "We are seeing upward pressure on rental rates as fewer options are available to tenants and landlords are seeing more demand for space," said Joe Binfet, managing director of Colliers International in Calgary.
"There is an unusually high volume of pending deals in the large bay market. As a result vacancy will continue to decline. We expect to see four per cent vacancy as early as the first quarter of 2011."
Binfet said distribution and transportation companies are ramping up and putting products in place.
"This bodes well for the retail sector," he said. "(It's a) good time for the development community to step up and build as demand continues to surge."
mtoneguzzi@calgaryherald.com
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Read more: http://www.calgaryherald.com/business/Calgary+industrial+vacancy+declines/3619601/story.html?cid=megadrop_story#ixzz11P0ZyaPt
