Photo by Cody James
According to a report by Colliers International, positive momentum in the Calgary industrial real estate market continued into the first quarter of this year following a strong finish in 2010.
The average net rent for industrial real estate in Calgary was $7.84 per square foot in the first quarter of 2011, increased from $7.35 a year ago. “We are seeing speculative development in the market. Three large distribution facilities are slated for the northeast,” said Joe Binfet, managing director of Colliers International in Calgary. He added that Calgary is under-retailed and that there is a strong demand for retail in the city. Vacancy increased by 0.24% to 5.23% in the fourth quarter of last year.
Calgary’s economy seems to be stabilized despite the war in Libya and the earthquake and tsunami in Japan. The Calgary Herald states that a Canadian dollar above par with the United States’ and $100 per barrel oil prices have contributed to positive development in the local real estate market.
“Since the recession began two and a half years ago, we have been slowly absorbing leftover vacancies from the boom times,” said Sean Bradley of the Advent Commercial Real Estate Group. “Contractors are busy quoting jobs that have a strong chance of going forward.” Vantage Engineering Inc. confirmed his statement by hiring a number of new employees to keep up with the company’s growing business.