Calgary has high vacancy rates
Calgary has in recent years been noted for it’s office low vacancy rates. However, the biting recession has changed all this, and now it has some of the highest rates across Canada. The only factor which might halt the rise in the vacancy rate is a sharp increase in energy prices. In Q4 2006, the vacancy rate was an incredible 0.5%, now it stands at 8.9%. Although not the highest rate across the country, it is still well above what local commericial property experts would expect.
The total stock of office space in Calgary is 33.5 million square feet, but there is also 5 million sq ft in construction. The total amount leased this year has dropped 900,000 sq ft. Demand has been falling rapidly, and those looking for office space are seeking a cheaper sublet.