2011 Calgary Real Estate Trend Report

What do owners and investors need to know to maximize the value of their investment in Calgary’s office market?

The A B Cs of  Commercial Real Estate – an independent, in-depth examination of Calgary’s downtown Class A, B & C office markets including:

• Key Economic Indicators
• The Challenges facing the A, B & C Class Markets
• Hidden inventory

The report offers relevant and timely information based on analysis of market data and informed perspectives from:

• The Oil & Gas Industry
• Financial Institutions
• Employment Experts
• Commercial Real Estate Operations

Summary

BUILDING OWNERS – INVESTORS – TENANTS/BUSINESS OWNERS

The A B Cs of  Commercial Real Estate is a must-read to understand the wide range of factors impacting Calgary’s downtown Class B and C office market that are critical to help maximize returns and minimize the risk of investment in commercial real estate.

Calgary’s downtown office market has undergone significant change and will continue to evolve over the next few years. Looking ahead we can expect to see:

• A continued migration to newer and higher quality office space
• Elevated vacancy levels in Class B and C space, particularly in the downtown west core
• A cautiously optimistic approach to corporate growth and therefore a slower pace of hiring in the office sector
• Limited growth in the natural gas sector that has historically driven significant demand for office space in Calgary
• A hidden increase in office inventory due to a reduction in the size of the workplace as companies move towards telecommuting and open concept spaces
• Continued rollover of leases at significantly lower rates resulting in cash flow shortages and difficulty in making payments to mortgage lenders and equity investors
• Difficulty in obtaining conventional mortgage capital to replace current debt levels as mortgages put in place in the economic peak of 2005-2007 come due
• A need for additional equity investment to support both reduced mortgage levels and building improvements required to attract long-term tenants

Watch our video highlighting Downtown Office Vacancy: