Strong Economy Boosts Calgary Commercial Real Estate

Investing in purpose-built multi-family rentals is also important.

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A strong economy growing at a pace not seen in over a decade has spurred investment in Calgary’s commercial real estate sector, including multi-family residences.

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Re/Max Commercial Real Estate recently released its Real Estate Report for Canada 2022, finding that commercial real estate investment in the city reached nearly $1 billion in the first three months of the year, s’ building on a strong 2021 that saw over $2.4 billion for the full year.

Last year’s performance was also up 26% from 2020, when Calgary saw $1.9 billion in commercial real estate investment.

The demand for industrial buildings and flexible spaces is among the hottest market segments, which have been in short supply since the start of the pandemic.

Investments have also been strong in purpose-built multi-family rentals, the report notes. Recent activity includes three downtown office building conversions, adding 400,000 square feet to Calgary’s residential rental market.

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The conversion trend is spurred by “tepid” activity among downtown office space, with the vacancy rate for this long-suffering segment reaching nearly 27% in the first quarter, compared to around 25% for the same period last year. Still, the report notes that two downtown office buildings were sold in the first three months of this year, with a combined value of $25 million.

Away from downtown, retail commercial real estate has done exceptionally well, the report notes, reflecting the province’s improving economy.

With the economy expected to grow nearly 6% this year amid falling unemployment, the report predicted an increasingly favorable climate for residential, from purpose-built multifamily rentals to new home starts. single family.