CALGARY – Calgary’s downtown office market experienced the greatest turbulence in the country due to last year’s recession, says a report released today by commercial real estate firm Cushman & Wakefield.
In its Outlook 2010 mid-year report, the company said the city’s central office market could see the vacancy rate approach 20 per cent when the 1.9 million square foot Bow Tower opens in early 2012.
“Propelled by record natural gas prices in 2005, alongside buoyant oil prices, explosive office demand squeezed the downtown core vacancy to 0.1 per cent,” said the report. “What followed was a frenetic development cycle that will see about 7.5 million square feet added to Calgary’s downtown office inventory.
“Fast forward to 2010 and many of these developments are just coming to completion at a time when recovery from the recession has barely taken hold.”
But there are silver linings, said the report.
“Calgary’s business fundamentals remain strong and layoffs were surprisingly limited, indicating long-term business confidence.”
The report said Calgary’s central area has an inventory of 41.3 million square feet and is projected to rise to 42.3 million square feet by the first quarter of 2011.
The vacancy rate in the first quarter of this year was 12.1 per cent and is forecast to rise to 16.2 per cent by the first quarter of 2011.
- ‘Shock and disbelief’ after Manitoba school trustee’s Indigenous comments
- ‘Super lice’ are becoming more resistant to chemical shampoos. What to use instead
- Is home ownership only for the rich now? 80% say yes in new poll
- Invasive strep: ‘Don’t wait’ to seek care, N.S. woman warns on long road to recovery
Comments