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Increasing Commercial Real Estate in Calgary
The economy of Calgary is significantly booming as Canada’s best job prospects as well as residential housing market stays strong. Commercial real estate is currently skyrocketing according to a recent study.
The Calgary Herald reported that there is increasing commercial transactions year-over-year. The transaction activity increases within the core points of the city and land markets to the commercial real estate market of Greater Calgary that was poised with a stable growth pattern in the asset classes.
There is a doubling activity in the industrial land transactions as the retail sector did that witnessed complete acquisitions of millions of dollars. The stable growth in the economy of Calgary pushes through as almost 8% of vacancy rate for office space downtown and 0.3% unemployment rate were reported. With increased demand and more jobs for housing, several experts have predicted that home prices will boom in Calgary.
The uncertainty in the global economy made Canadian business brace a challenging momentum yet the industry is improving when it comes to financial growth, skyrocketing demand for office spaces, and increased job prospects. The commercial real estate in Calgary market has also significantly reached new heights while matching Toronto from the thriving cities in Canada despite of slow global economy. Office spaces in the city are increasingly becoming hard to come by with businesses booming.
In the previous years, vacancy rates in office market downtown have drawn 16% but currently, it is under 8%. Clearly, there is a significant increase in the commercial real estate market in Calgary wherein more businesses are expected to boom. In fact, Calgary is internationally deemed as one of the most flourishing urban center worldwide.
The demand for new office space has already reached unprecedented highs and projects are currently increasing with permitting, planning, and construction. Commercial properties are expected to rise and are already experienced right now by Calgary residents.
The high growth rate in Calgary’s economy drives commercial real estate market’s growth. However, the oil price drops can influence the market in the future. The current inventory inadequacy attributes to increasing values as well as demand for the commercial real estate particularly in warehouse and retail spaces for retail and e-commerce. Just like other markets, Calgary’s foreign investment interests are significantly high.
In the coming months, the energy industry will also continue characterizing the market. Alberta is relying heavily on its own resources for generating more income and the resources is essential in the real estate market. If oil demand remains high, then the market will follow suit. Despite of the challenges in supply, the market in western Canada holds steady for all products with increases in the commercial sector by economic growth for higher employment, foreign investment interest, aim to increase density in downtown core, and development of resource development.
It is also important that low interest rates keep lending flexible to allow more buyers and investors get through the market. The increase for commercial real estate in Calgary will open more opportunities for both residents and businesses.
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