Calgary Industrial Vacancy Rates Hover Around 5% According to Recent Surveys

Jan 14, 2011 by

A recent reports noted in the Calgary Herald indicates that vacancy has now dropped below 5% to 4.2%.  Again it entirely depends on whose report you read as other larger brokerages reporting their statistics quote the year end 2010 vacancy rate at 5.57%.    See another Calgary Herald article.   Availabilty rates based on a review of the surveys from the maor shops range from 8.23% to 8.69%.  Remember Vacancy is defined as what is truly vacant where Availability is what is literally available for lease, being spaces occupied but available for sublease, development projects not yet completed but available for leasing etc.  This is all very good news for the market in that the “confidence” in the market is returning.  We are continueing to see groups look at alternatives either expanding or contracting.  The point is they are doing something with their real estate.  We spent a most of 2009 and a portion of early 2010 doing little as some users were paralized by the fear that their business could fail.  Now that their is a return of business confidence those same users are realizing that the sky is not falling and that “yes” we have to do something relating to the space their business occupies.

Another positive sign is the return of the design build.  During 2009 and most of 2010 there were significant drops in land sales activities which translates into new construction.  The City of Calgary has only 4 lots currently available to purchase in the Eastlake Industrial Centre and is well underway with the sale of industrial lots in the Great Plains Industrial Park.