Office space scarce in Calgary's downtown
Low vacancy rate expected to spur construction of new towers
CBC News
Posted: Oct 27, 2011 11:53 AM MT
Last Updated: Oct 27, 2011 7:00 PM MT
Things are looking bullish for office space in downtown Calgary despite the uncertain global economic picture.
The vacancy rate is seven per cent for space in the city centre — and it’s going fast, said Greg Kwong, a senior executive with the real estate firm CBRE Canada.
Rapid growth in the oilsands is fuelling the demand, and the global market has noticed, Kwong said.
“To have six million square feet being built in Calgary over the past three years — and that was on a base of 32 million square feet — and all of that space being leased before it was being delivered to the market, is unheard of anywhere quite frankly in the world,” he said.
Two years ago Calgary’s downtown office vacancy rate was at an all-time high.
Kwong said he expects announcements soon for a second tower at Eighth Avenue Place and as well as new office projects at Eau Claire.
Loy Sullivan, vice-president of office leasing with 20 Vic Management Inc., a major downtown building owner, agreed that more building is likely on the horizon.
“If this demand continues and oilsand investment continues, Calgary's going to continue to grow. It's going to continue to attract employees and we will need some more new office buildings in Calgary,” Sullivan said.
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