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.