On behalf of owner Slate Asset Management, Colliers has leased approximately 180,000 square feet in the newly renovated Stephen Avenue Place to such businesses as WeWork and mCloud. Colliers says vacancy rates for such quality office space in downtown Calgary is much lower than the city’s overall vacancy rate.Slate
In what appears to be a sign of confidence that Alberta’s economy is making a comeback, investors spent a record amount on commercial real estate in the province’s largest city during the first four months of this year.
Calgary’s commercial real estate sales in Q1 2022 topped $1.6-billion, according to The Network research firm. While this can largely be attributed to the $1.2-billion sale of downtown’s iconic Bow skyscraper, the chart-busting quarter was preceded by “a dramatic increase in sales through the third and fourth quarters of 2021,” states The Network’s report, released in April.
Adding to higher sales is a “significant increase in leasing activity for commercial property in Calgary,” says Justin Mayerchak, executive vice-president and partner at Colliers’s Calgary office.
Calgary is in the midst of an industrial real estate boom.
— Adam Grisack, director of valuation and advisory services at Colliers Canada
After enduring seven years of economic lethargy linked to the struggling energy sector, only to be further pummelled the last two-years by the pandemic, “Calgary has finally seen two consecutive quarters of positive absorption of office space,” says Mr. Mayerchak.
The vacancy rate is still the highest of Canada’s 10 major cities, at 28 per cent. But in this city, which has more office space per capita than any other in the country, vacancy has “compressed considerably” – to around 10 per cent – in higher-classed buildings. Occupancy for downtown AA space recently crossed the 13-million-square-foot mark for the first time in recent record.
“A 10-year high in oil pricing is sparking optimism in the energy sector and, by extension, Calgary’s downtown office market,” states Colliers’s Q2-2022 Downtown Office Market Report. “For the first time in several years, Colliers has seen companies in the energy sector looking to increase their overall office footprint, stepping away from the downsizing witnessed over the past few years.”
Meanwhile, Calgary’s industrial property market is “absolutely on fire,” says Mr. Mayerchak. Vacancy rates fell 50 per cent in the past year and now hover around 3.5 per cent – the lowest since 2014. Major players such as Amazon, Lowe’s, Home Depot, Canadian Tire and Walmart have made billions worth of investments in the province as they expand their industrial spaces.
According to Adam Grisack, director of valuation and advisory services at Colliers, “Calgary is in the midst of an industrial real estate boom.”
In a recent article published on Real Estate News Exchange, Mr. Grisack wrote: “Increasing job numbers have sparked renewed optimism in the city, making Calgary an attractive destination for businesses.”
After posting the second-strongest annual economic gain among the 10 provinces in 2021, the Conference Board of Canada projects that Alberta will lead the country in economic growth in both 2022 and 2023.
This optimism has driven more people to the province. According to Statistics Canada, Alberta welcomed 16,690 newcomers in the third quarter of 2021, the most in nearly seven years.
One of Calgary’s largest owners of multifamily buildings is reaping strong returns. Mainstreet Equity Corp., with 3,229 units in dozens of holdings, achieved 12-per-cent growth in Q1 2022, its fourth consecutive quarter of double-digit revenue increase.
The company expects more growth ahead. “Canadian oil production was the highest on record in 2021, and energy companies reaped their largest-ever revenues over the year – $158-billion,” states Bob Dhillon, president and chief executive officer of Mainstreet, in the company’s Q1 2022 report. “We believe this will help propel an influx of migration, extending the positive trend we have seen in recent months.”
Even with the global movement away from oil and gas, Mr. Dhillon remains optimistic about Calgary’s future. That’s because “Calgary’s economic foundation is becoming increasingly diversified,” he asserts, and this is another draw for workers.
Calgary’s commercial real estate sales in Q1 2022 topped $1.6-billion, a
new record for sales in a single quarter.Jeff McIntosh/The Canadian Press
During Calgary Economic Development’s annual Report to the Community event, which took place virtually on April 28, the city’s mayor, Jyoti Gondek, spoke of Calgary emerging as a global hub for innovation in energy transition.
“Shifting our narrative and securing Calgary’s position as a leader in the energy transformation may be the most important thing we do for our city’s economic future,” said Ms. Gondek.
Calgary was recently recognized as a cleantech “ecosystem to watch,” ranking in the top 30 out of nearly 300 cities by the international innovation research firm Startup Genome, the mayor noted.
Greg Kwong, executive vice-president and regional managing director at CBRE’s Calgary office, recalls that only a handful of years ago, “people were saying, ‘I don’t know if I could ever go back there,’ ” referring to Calgary. After all, in 2017, the Conference Board ranked Alberta’s economy third last in Canada.
“Now, you talk to any major economist from any financial institution and all their numbers point to Alberta having Canada’s strongest growth for the next 12 to 18 months,” he says.
“But I’d go further,” he adds. “I’d make that five to 10 years.”
Along with its soaring economy, the city’s low cost of living will continue to draw new business, says Mr. Kwong.
Calgary’s average home price, currently a record high of $605,000, according to the Calgary Real Estate Board, is still less than half of Vancouver’s at $1,374,500, or Toronto’s at $1,254,400.
It’s the same for commercial real estate: According to CBRE, office lease rates in Calgary cost $16.55 per square foot compared to $39 in Vancouver and $28.15 in Toronto. Industrial space is also nearly half the price compared to those two cities.
Mr. Kwong says Vancouver’s university graduates tell him they can’t afford to live in that city. “So, they’re moving here. In fact, [of] the last six people I’ve hired – three are from Vancouver.”
Canada’s average annual salary – $66,800 according to most recent StatCan figures – is not enough to save for a starter home in Vancouver, Mr. Kwong says.
“We’ve got smart, ambitious young people who are moving here. Those people don’t just sit in their heads. They’ll start businesses. They’ll work for people. They’re going to create.”
And when major businesses set up new locations, adds Mr Kwong, “they’re looking at two factors. One: Can they open up shop and hire 5,000 people? Two: What are the overhead costs? Then they look at everything else: logistics, support services, quality of life. But if they can’t find the staff and operating costs are too high, you get precluded from a lot of site searches.”
Mr. Kwong says that record spending on commercial real estate this year attests to investors’ “confidence in the long-term economy.”
These investors, Mr. Kwong concedes, are also following two adages, “that have always proven successful in real estate. Location, location, location; you’ve heard that many times.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
:format(jpeg)/cloudfront-us-east-1.images.arcpublishing.com/tgam/THI5X3QBY5DFDMETDYSDOCP3XY.jpg)
:format(jpeg)/cloudfront-us-east-1.images.arcpublishing.com/tgam/QBNPU3Y7NVO7DHSSKUXM2GVX4I.jpg)
