Calgary Commercial Real Estate Sales reached $3.2 Billion in 2014

Posted on 7 March, 2015 by Jodee Redmond

Commercial real estate sales in the Canadian city of Calgary reached $3.2 billion in 2014, an increase of 2 per cent over the previous year, according to a new report from RealNet Canada Inc.

Calgary-Commercial-Real-Estate-Sales-reached-3-2-Billion-in-2014

The report states that 483 transactions worth in excess of $1 million were recorded over the course of the year, representing the fifth best year on record for the city.

Paul Richter, the director of research at RealNet Canada, said that the last half of 2014 was a strong six months for the Greater Calgary commercial real estate market and it caps a very healthy five-year run from the market adjustments experienced in 2009. With the exception of the office market, all asset classes saw year-over year growth.

  • Hotel Sector: 44 per cent to $50.9 million
  • Industrial/Land: 5 per cent to $654.1 million
  • Retail Sector: 57 per cent to $434.6 million

Joe Binfet, the managing director/broker for Colliers International in Calgary, said that 2014 was a “terrific year for the firm’s investment division.

He went on to say that 2015 will be a challenging one and that Colliers is seeing “a standoff” between buyers and sellers across the board.

Owners are reluctant to sell in current market conditions, while buyers are looking for a discount in pricing. On a positive note, there is still a significant level of buyer interest in the Calgary market.

Abundance of Office Supply

The office market currently has an abundance of supply, particularly in sublease space. Demand is weak now, since tenants are making decisions about leasing.

Both tenants and landlords are waiting for more clarity about what the energy markets are going to do before signing leases – How low with the price of oil fall? How long will prices stay down, and when will the situation improve?

Comparing the 2012 market conditions to 2014, investment totals in retail and hotel are down between 40-45 per cent from 2012.

Investment declined by close to 65 per cent in the office market, according to the RealNet report.




Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Recent Posts

Interest Rates Impact on Commercial Property

Commercial Property Investment Outlook for 2023

The best places to stay on the Riviera

The latest property data has identified Newquay as the fastest property seller’s market in the UK

Investing in your garden can increase your property’s value

French Riviera temping high-end homebuyers

How can the ownership rights of my commercial property impact a business sale?

Should I incorporate virtual property viewings permanently?

Investment expected to increase across Asia-Pacific in 2021

UK property industry slows as the conclusion of tax break looms

BNP Paribas cautioned investors on Friday as debt-trading bonanza that increased its earnings this past year

Over 300,000 property purchases fell through in 2020 – we show the most frequent motives and the best way to get your house sale back on track

House Prices in the Capital Surpass £500,000

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants