What are the real estate trends for commercial real estate in 2015 in Calgary? This is a question that many investors are asking these days.
One of the greatest challenges to the commercial real estate market has been the recent plunge in oil prices which has dampened development and created a certain degree of uncertainty.
We’ve been through this before and currently oil prices are largely being influenced by OPEC as they try to put pressure on other oil producers such as the Alberta oil patch, but this trend will change when the global economy improves.
On the positive side, the Bank of Canada has not raised its interest rates in over 4 years, and it appears that interest rates are not expected to rise in the immediate future.
Employment in the oil industry has seen some modest reductions in staffing levels and it is likely the trend will continue for awhile before it levels out. Residential home prices have seen a modest dip but the overall the market remains fairly strong and relatively stable.
Creation of new jobs has also dipped and the Alberta economy is expected to underperform below the national average for the first time since the last financial collapse in 2009.
Housing prices have dipped for the first time in several years and are 34% lower than this time last year. As well, listings appear to have grown as well and are up as high as 22% than what they are for last year.
The good news is for commercial real estate is that more opportunities for leasing are available and better deals can be had, so now might be the perfect time to take advantage of the cooling market to position yourself when things improve down the road.
Investors should keep in mind that the overall economy in Alberta is faring well and is still relatively strong.
