If you’re thinking of leasing some commercial space in Calgary, then one of the best ways to start is to have a clear understanding of the market. This is especially important if you are a newcomer to Calgary because commercial leasing in this city is both vibrant and thriving.
The drawback to a thriving commercial market also means that available commercial space is competitive, and as supply and demand fluctuates so does the cost to lease or buy a commercial space.
An Overview of the Calgary Commercial Real Estate Market
Calgary is well renowned as being the energy capital of Canada and has both an abundance of energy related service and production companies situated here.
Equally important is its strategic location because it is also a vital transportation hub which serves not only the U.S. market but Asia as well.
Calgary’s work force is both highly educated and skilled. The city has a current population of 1.2 million and is still in a growth phase. The city has both universities and colleges which are recognized internationally.
One of the big pluses about the city is that it is not restricted by its geography so it has the ability to easily expand and accommodate the growing population and allow for the development of new commercial space.
Calgary is also has a thriving tourist market and is becoming known for the development of its high tech companies for added diversity. There is also a good industrial environment to make a good mix.
Calgary also has the second largest amount of head offices. The downtown core of the city is largely occupied by large space users who require space greater than 10,000 square feet.
The city has seen an upswing in the retail sector as large retailers, especially from the U.S. have expanded their retail businesses in Calgary.
The industrial side of commercial space in the city has also witnessed a solid and expanding growth and possesses good warehouse and distribution facilities. The city has plenty of land which can be used for industrial or other commercial applications. There are plenty of large parcels of land available which can be used for new development.
The commercial space forecast in Calgary for 2013 is forecasted as being favourable. It’s expected that Calgary will be Canada’s leader in terms of economic growth. The projected average growth rate between 2013 right through 2106 is expected to be 4.1%.
Commercial real estate forecasters see office buildings and multi-residential locations as being the most sought after properties.
2012 saw a decline in the availability of office space and the vacancy rate was at only 4.4% in the final quarter. Some analysts believe the office leasing frenzy is slacking off a bit, but the demand for quality location space remains high.
This has nudged developers to begin construction of new developments to offset the growing demand.
This rough breakdown of the Calgary market clearly shows that leasing Calgary commercial space can be challenging to a newcomer to the city. So, clearly the best approach is to find yourself an experienced commercial real estate broker such as myself to help get you started to find the right space for your business.
Photo By Franco Folini.
