Only 7 per cent of Calgary commercial real estate agents in a recent survey expect the city’s troubled Class A office space vacancy rate to rise, but the majority do not expect to see an increase in downtown office lease rates.
The downtown Class C office market, however, will continues to see challenges, and suburban offices could see a recovery in lease rates.
The findings come from a third-quarter Colliers International sentiment survey of Colliers agents who deal in the office and industrial market.
In the industrial sector, capitalization rates are forecast to be move downward over the next year, while lease rates and tenant demand are expected to improve.
The strongest demand is forecast to be in warehouse and distribution space, with 86 per cent of respondents seeing higher lease rates coming in that sector.
The best industrial markets for investors and developers will likely be seen in Calgary’s central and southwest regions, according to the Colliers survey.