Green Shoots in Calgary`s Office Market

[bizaro86]

Oxford Properties has announced they're marketing a new 25 storey office building that they have planned in downtown Calgary. Considering the huge amount of space that has been built/leased recently (8th avenue place, the Bow) the fact that they're considering it is unbelievable.



http://www.calgaryherald.com/business/Oxford+Properties+plans+storey+tower+Calgary+Claire+area/5507762/story.html



I also recently read that more office space was leased ("absorbed") in Calgary than Toronto so far this year, which is amazing considering Calgary is a fraction of the size. To me, this is a bullish sign for the Calgary residential real estate market, as all those office towers are full of people with good jobs.



Any thoughts on this market, or what that means for smaller scale real estate?



Regards,



Michael

 

[Thomas Beyer]

They are making a bet that in 4 years there will be demand. Of all the places in the world to invest money for real estate, be it an office tower or new condos or land development, Calgary is certainly among the top. It is the cream of the crap. No one knows what the future will bring, but people worldwide need what Alberta has to offer: oil, coal, gas, agricultural product, freedom, clean air, space .. So among an uncertain world outlook Calgary as Alberta's #1 city is certainly a better place to invest than many other candidates.

 

[bizaro86]

[quote user=ThomasBeyer]They are making a bet that in 4 years there will be demand. Of all the places in the world to invest money for real estate, be it an office tower or new condos or land development, Calgary is certainly among the top. It is the cream of the crap. No one knows what the future will bring, but people worldwide need what Alberta has to offer: oil, coal, gas, agricultural product, freedom, clean air, space .. So among an uncertain world outlook Calgary as Alberta's #1 city is certainly a better place to invest than many other candidates.





The part of the article that surprised me the most was the huge change in vacancy, with class A space down to 4.5% vacancy from over 12% just 1 year ago. That's a lot of office space filled with workers/jobs. And higher quality/newer space has an even lower vacancy rate.

 

[invst4profit]

[quote user=Thomas Beyer]They are making a bet that in 4 years there will be demand. Of all the places in the world to invest money for real estate, be it an office tower or new condos or land development, Calgary is certainly among the top. It is the cream of the crap. No one knows what the future will bring, but people worldwide need what Alberta has to offer: oil, coal, gas, agricultural product, freedom, clean air, space .. So among an uncertain world outlook Calgary as Alberta's #1 city is certainly a better place to invest than many other candidates.


Is this a Freudian slip ?

 

[Thomas Beyer]

Actually, it was not. It's not all rosy out there in the economy ! It's crappy. So in a crappy economy you buy the cream of the crap !