- What Calgary’s office vacancy rates are holding relatively steady
- Why Conversions of office space to residential units are helping lower vacancy
- What next The city’s famed Stampede is boosting demand for office space
Calgary’s office vacancy rate ticked down slightly to 23.2% as of June 30, Avison Young said in a Q2 market report.
Overall, the vacancy rate was down 0.83%. Year to date, the absorption rate is nearly 190,000 sq ft.
“The market remains resilient and continues to diversify,” the brokerage said. “Recent developments in the capital markets have bolstered optimism in the office market.”
Downtown, vacancy dropped 1.3% year over year to 26%, driven by positive absorption of Class-AA space and an uptick in the conversion of office space to residential units.
“The Central Core remains the preferred choice for tenants seeking quality office space,” Avison Young said. “As vacancies decrease and the disparity between top-tier and other asset classes narrows, securing large block space in this quality-driven market is becoming increasingly challenging.”
The vacancy rate in the suburbs increased 0.54% to 17.6%, largely consistent with where it has been for the last eight quarters.
The biggest year over year decrease in vacancy came in the city’s beltline, where the rate was down 2.13%. However, Avison Young said the submarket “has struggled to gain momentum” as office tenants move downtown or to the suburbs.
The brokerage also noted the Calgary Stampede’s influence in attracting nearly 1.5m visitors to the city, which helped bolster the market.
“This influx of visitors and residents has provided Calgary a significant economic boost, enabling further development and expansion,” it said. “Notable projects include the newly renovated BMO Centre and the Arts Commons building.”
