Calgary Industrial Market Report Q4 2019

research article

Calgary’s industrial market experienced a stable quarter, with vacancy decreasing 3 basis points to 6.04%. Calgary remains as an attractive market for its abundance of newly built product, low rental rates compared to other major Canadian cities, and location as a Western distribution hub. Our outlook into 2020 is positive as we expect absorption to catch up to the oversupply of new construction experienced in the past 24 months.

  • While the market remains slow, absorption increased with ±768,252 square feet of net positive absorption in the fourth quarter.
  • There has been 6.4 million square feet of new supply experienced over the previous 24 months. 
  • A 24% increase in commercial tax rates in the past 2 years has resulted in increased bankruptcies among smaller tenants.

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Calgary Industrial Market Report Q4 2019

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Matt Rachiele

Managing Director | Calgary Brokerage

Calgary

Matt joined Colliers in April 2019 upon leaving TD Securities, the capital markets division of the Toronto Dominion Bank Group.  He was an investment banker for twelve years in total, during which time he provided financial and strategic advisory services to a broad range of corporate and institutional clients, including two years as a Mergers & Acquisitions specialist in Toronto and the past eight years with TD’s Global Energy Group based in Calgary.

 

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