Calgary’s commercial real estate market saw a major jump in dollar volume in its retail sector, despite seeing a small decline overall.
The Capital Investments Report, which tracks sales of over $2 million, showed that the overall dollar volume decreased by $200 million to $2.4 billion. However, the retail sector grew by 70 per cent to $360 million.
A total of 35 retail property deals topped the $2 million dollar mark in 2014. The average price per square foot was over $400.00.
The majority of investment dollars were generated by private investors who purchased street-front retail properties and strip malls, according to the report.
Avison Young’s vice president in investment sales, Walsh Mannas, pointed out recently that Canada is “under-retailed” in every major market compared to the United States. Vacancies are low, which keeps rates strong.
The office sector represented the largest dollar amount for the city, with sales at 29 per cent and $703.6 million.
The average sale price per sq ft was $335.00, down from $372.00 in 2013. The market peak was $376.00 per sq ft set in 2008.
Even though there was an overall dip in the market, there were still several active groups in Calgary who were trying to make purchases. Unfortunately, the sellers simply were not there.
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