Data and technology aimed at improving the tenant experience in the office market could attract more tenants into Calgary’s downtown, according to an official with a real estate advisory company.
“It’s all about using data and technology to make the buildings more efficient, to make the tenants’ lives easier,” Matthew Boukall, the vice president of product management for Altus Group, said on Global News Morning Saturday.
“Smarter elevators, HVAC that turns off and on, lighting controls, faster internet, anything that can make the tenant’s life a little bit more enjoyable.”
The data and technology trend is called ‘PorpTech’ according to Boukall. He said Calgary’s office sector still has a vacancy rate of “around 25 per cent,” but expects this trend to chip away at the number.
“Calgary’s gone through a little bit of a tough go with the real estate market over the last couple of years,” Boukall said.
“From the office market… the worst is really behind us.”
This week the Altus Group released a “flash report” of various Calgary real estate sectors. Boukall said it also found positives in Calgary’s industrial market and noted that some of the activity is tied to the prevalence of online shopping.
“You still need a space to distribute the goods and that’s what’s driving a lot of activity,” Boukall said.
“We are seeing a lot of logistics move to Calgary and headquarter here.”
As for the residential market, the report noted that home-buying intentions are down slightly this spring, due to more renters indicating that they do not plan to buy a home in the next year. Boukall attributed this to the fact that Calgary “is one of the most affordable markets in the country” to rent in.
“At the end of the day, you still need a house to live.”