“Let’s be clear, the Calgary office market still faces extensive challenges, but in a marketplace that has been devoid of good news for the last three years, this is a very encouraging sign,” commented Greg Kwong, Regional Managing Director of Alberta at CBRE Canada.
CBRE’s Quarterly Statistics Report for the third quarter of 2017 shows 113,000 square feet of positive absorption, talking Calgary’s vacancy rate down 30 basis points to 27.4%. Until this year, the vacancy rate hadn’t declined in three years.
Nationally the office market is also showing strength with the best start to a year in a decade. The national office vacancy rate was also down 30 basis points to 12.8%.
“2017 is emerging as a standout year for the Canadian office market and its success might no longer be one of Canada’s best kept secrets with international investors increasingly taking note,” commented Paul Morassutti, Executive Managing Director at CBRE Canada.
Downtown Toronto still has the lowest office vacancy rate in North America with Downtown Vancouver not far behind. There has also been a 20% reduction in the Montreal vacancy rate in the past 12 months.
The tech sector is driving much of the demand for offices in Canada’s largest commercial markets.
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There has been significant improvement in Calgary’s office market with the sector posting its first quarterly rise in tenant demand since the oil industry downturn.