Office space in downtown Calgary will be even harder to find in 2013 and early 2014, predicts Colliers International.
The commercial real estate giant is predicting in its recent Calgary downtown update that the office vacancy rate in the core of Alberta's largest city will fall further in 2013, to only 2.4 per cent, reflecting both pent-up demand for space and the lack of any large new projects coming on stream in 2013.
"With no new space to be delivered until 2014, the market will continue to be very tight, with low vacancy rates for the foreseeable future," Colliers predicts. Most new construction is now in suburban markets.
Still, the company notes that office lease rates, now at from $33 per square foot to $55 per square foot for prime downtown space, are expected to hold firm over the next 12 months.
– Compiled by Dave Husda
from Western Investor March 2013
