December 2020 Calgary Market Report

 In News

December 2020 Calgary Market Report

We are pleased to provide you with some of the key insights from current Calgary market reports. Learn how the following issues and factors will impact the Commercial Real Estate market:

  • Alberta’s oil and gas sector was shaken up in October with the announcement of Cenovus Energy acquiring Husky Energy for $3.8 billion in a share sale, creating the third largest oil and natural gas producer in the country. Although the new entity is expected to become leaner and more resilient to face challenges in a post-pandemic world, it will come at the cost of a 25% reduction in its workforce.
  • After the extension of the property tax deadline to the end of September, the City of Calgary has reported that there is still $45 million in outstanding commercial property taxes, resulting in a 91.6% on-time payment rate. At the same time, a tax shift is expected in 2021 with large-format warehouses expected to see a 14% increase in assessment values, ultimately translating to a tax bill hike of 25%.
  • Office leasing volume remained weak in the first month of the fourth quarter with the largest deal involving only 14,000 square feet within the Watermark Tower. Sales activity also remained subdued since April as investors are taking a “wait and see” approach. Interestingly, storage giant U-Haul has acquired the former 90,000 square foot Calgary Sun building and plans to convert it into a 700-unit storage facility after being on the market for just under two years.
  • Calgary’s industrial market continues to see positive absorption due to increased demand for distribution and logistics space. This was evident by the fact that Triovest was able to lease out 158,600 square feet of warehouse space at 5801 72nd Avenue SE at the end of October while there were six additional industrial leases being signed for space between 20,000 and 50,000 square feet.
  • Alberta’s retail sales have recovered to pre-pandemic levels for the past three months, indicating that the retail market has avoided any massive shocks to its vacancy rate. However, Calgary is starting to see its strip centre segment weaken, with vacancy now at 6.2%. Hopefully, the new rent subsidy program initiated by the federal government will help those retailers affected by the pandemic by providing businesses with up to 65% in rent/mortgage support until June 2021.

What are your thoughts on the Market? Leave your comments… and let’s discuss.

Find your ideal commercial property, search our listings at https://topcommerciallistings.com/#listings. Let’s talk about your next investment and take advantage of our land / properties that may not be listed!
Call Aaron at 403-200-4026.

Image by BazzaBoy from Pixabay | Content Credit: CoStar

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