Calgary’s industrial real estate market is seeing record high activity after a COVID-19 pandemic boost, which experts say could mean more job opportunities for residents and a growing tax base for the city.
Real eState
‘Record high activity’: Calgary’s industrial real estate market blossoming in 2022
Latest numbers show there is about 3.5 million square feet of vacancy in the city, representing a 1.5 per cent vacancy rate. By comparison, Toronto has a 0.9 per cent vacancy rate and Vancouver sits at 0.8 per cent
Ilya Raykhlin, an associate broker with Re/Max Commercial, said Calgary’s vacancy rate and location allow it to be an attractive alternative for companies needing space who want to look outside of major markets such as Vancouver and Toronto.
Raykhlin said absorption rates are hitting record high levels as are rental rates in the city. He said the only constraint on the market at this time is having enough infrastructure to keep up with demand, adding demand around the world increased during the pandemic and grew almost entirely around e-commerce as most of the world’s population took their spending online.
“Unlike other areas of the country, Calgary is not constrained by things like mountains or the ocean and we offer level topography with development-friendly soil conditions, so we’re just a natural location to develop these large footprint facilities,” said Raykhlin.
“Virtually every major retailer that has an e-commerce base component to their business is here or looking to be here,” said Kwong. “Most of them are located along the highway, Deerfoot Trail corridor, and you can see all the signs as you drive through and around those neighbourhoods.”
Kwong said Calgary’s industrial market has historically been centred on oil and gas but there has been a shift to tailoring to other industries, such as e-commerce. He said the continued growth of investment in the region means the city will benefit from a broadening tax base and Calgarians will have access to more employment.
While continued investment and attraction in the sector could be good news for residents and for the owners of industrial real estate, Raykhlin said it could spell higher rental rates for retailers and renters.
“It’s not going to be a favourable economic climate, in that sense, for the tenants,” said Kwong.
However, JLL data show Calgary’s rental rates currently remain fairly low compared to other major markets. Over the past quarter, Calgary saw an average rate of $9.93 per square foot, compared to Toronto where rent averages $15.32 per square foot, and Vancouver, where the average rate sits around $18.70 per square foot.
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OTTAWA – The Canadian Real Estate Association says the number of homes sold in August fell compared with a year ago as the market remained largely stuck in a holding pattern despite borrowing costs beginning to come down.
The association says the number of homes sold in August fell 2.1 per cent compared with the same month last year.
On a seasonally adjusted month-over-month basis, national home sales edged up 1.3 per cent from July.
CREA senior economist Shaun Cathcart says that with forecasts of lower interest rates throughout the rest of this year and into 2025, “it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country.”
The national average sale price for August amounted to $649,100, a 0.1 per cent increase compared with a year earlier.
The number of newly listed properties was up 1.1 per cent month-over-month.
This report by The Canadian Press was first published Sept. 16, 2024.
The Canadian Press. All rights reserved.
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.
The Canadian Press. All rights reserved.
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.
The Canadian Press. All rights reserved.
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