CBRE finds ‘promising indications that commercial real estate conditions in the city look to be improving’
– CBC News · Posted: Apr 02, 2019 8:05 AM MT | Last Updated: April 2
Warehouse sector thriving
By contrast, the report says Calgary’s warehouse distribution sector is thriving, a reflection of the national trend to accommodate the shift to online shopping. CBRE noted a large uptake in commercial warehouse space in the first quarter of 2019 by some major retailers, including Home Depot, which took a lease for a 418,346 square feet for an e-commerce fulfillment centre in the High Plains Industrial Park.
“Calgary’s industrial market, which has logged nine consecutive quarters of positive net absorption, had a further 649,080 square feet of space taken up in the first quarter of 2019,” the report says.
Another 2.1 million square feet of industrial space is under construction and slated for completion this year.
“Both Calgary’s office and industrial markets are offering promising indications that commercial real estate conditions in the city look to be improving at long last,” the report says.
RENX.ca – Mario Toneguzzi, April 12, 2019
Industrial property in Calgary remains a hot commodity, as illustrated by two recent transactions involving three buildings, and the city’s largest tract of undeveloped industrial development land.
“From the investment community point of view, we’re a top city in which investors look at placing money in. You know, historically it’s been Toronto, Vancouver, and then Montreal and Calgary,” said Matt Binfet, executive vice-president and partner with commercial real estate firm Colliers International in Calgary.
“That trend is going to continue to go forward. I think it’s only going to get better if we get a change in government both provincially and federally (during upcoming elections) and get the oil flowing again.
“The vast majority of real estate is institutionally owned in Calgary, so when product does come available there’s usually a good buying pool for that product. Calgary historically has always been a great place to invest.”