CBRE’s 2018 forecast shows flat real estate market in Calgary
Posted Feb 28, 2018 11:27 am.
This article is more than 5 years old.
After years of recession, Calgary’s economy seems to be turning around and CBRE’s 2018 real estate forecast suggests that is good news for the market.
CBRE’s Alberta Regional Managing Director Greg Kwong doesn’t see any major distress this year.
On the retail side, the most volatile segment of the market, expect the up and down to continue.
“Certainly a lot of churn,” said Kwong. “We haven’t seen a major increase in our vacancy rate and we’re still seeing smaller regional shopping centres being built in some of the newer areas.”
There are green shoots of hiring which is good news when it comes to office space and vacancy rates will remain flat, at around 26 per cent. Kwong said it will likely be like that for the next few years.
“There’s no real sentiment that we’re going to bounce back and be back to a 2 per cent vacancy and that all those people that lost their jobs are going to be back in the next two months,” he explained.
The situation is also helped by the fact there aren’t any huge office towers opening.
Industrial space continues to be in high demand in Calgary with the vacancy rate continuing to dip this year.
The multi-family rental market is improving. Vacancies are expected to be about 6 per cent, a full percentage point lower than 2016, with average 2-bedroom going for $1,250. The number of new units will also be half that of 2017.
