Activity in the Calgary Industrial market through the Q2 2021 has witnessed the continuation of demand in the distribution and logistics sector.
- The downward trend in the vacancy rate continued, dropping 27 basis points (bps) from 5.35% in Q1 2021 to 5.08% in the Q2 which has put upward pressure on market rents and decreased inducements.
- Another sign of the strengthening market has been the successful sales of owner / user properties that had extended time on market as purchasers are taking advantage of the low interest rate environment and growing optimism as the economy emerges from the impacts of the pandemic.
- The most notable project to reach completion this quarter was the Lowes distribution centre building in Balzac which was originally announced in Q2 2021. The 1.23 million square foot facility is scheduled to open in the fall of 2021 and will be part of an initiative to better optimize the company’s Canadian distribution network1.