The overall activity in the Calgary Industrial Market throughout Q4 2021 remained strong, as heightened demand for industrial product continued and renewed confidence from owners and occupiers across all segments has helped drive lease and sales momentum throughout the market. Q4 2021 was also characterized by an increase in mid-to-large-bay leasing activity and there was ±1.3M square feet of positive net absorption, a large part of which was leased to logistics and distribution users.
- Vacancy decreased 65 basis points from 4.78% in Q3 2021 to 4.13% in Q4, translating to a yearly decrease of 204 basis points in 2021.
- Continuing the current development cycle, under construction inventory grew once again to a total of ±7.1M square feet, still being driven by the southeast market. This comes despite the continued increase in development costs due largely to global supply chain delays and higher construction material costs.
- We continue to see insatiable demand for quality industrial investment opportunities in the Greater Calgary Area, with continued cap rate compression for income producing properties and heightened competition for serviced development land in key nodes.