The Calgary industrial market experienced a strong Q4 to round out a tumultuous year, as these unprecedented times created an array of difficulties and uncertainty for many owners and occupiers alike. Strong leasing activity in the large-bay segment continued to combat the amount of vacant space that was brought onto the market in Q4, and this trend will remain as we enter 2021, with the COVID-19 pandemic still at the forefront. However, as vaccination efforts increase and signs of optimism improve, the industrial market will continue to see momentum in the different segments of the market have held strong throughout 2020.
- Momentum in the large-bay segment, coupled with minimal new supply, helped drive overall vacancy down 15 basis points to 6.17% in the fourth quarter.
- Approximately 2.0 million square feet of product under construction throughout the Greater Calgary Area; however, 91% of it is accounted for in the Balzac district and only ±726,364 square feet is being built on spec.
- Our outlook for 2021 remains positive as many encouraging signs experienced throughout the year will continue into 2021, and with several sizeable requirements actively in the market, vacancy and availability rates are projected to trend downwards.