Limited inventory and ongoing demand bode well for Calgary’s industrial real estate market in the second half of 2023, says a new report from Avison Young.
The lack of available space will sustain lease rates and sale prices, the company said in its second quarter Calgary industrial report.
“Vacancy is expected to maintain a slow and steady increase,” states the report. “Despite this, there appears to be a sustained level of demand, coupled with continued optimism in the city.”
Vacancy rose marginally in the second quarter from the opening quarter, reaching 2.46 per cent. Leasing activity decreased in the first half of the year, albeit moderately, in comparison to the frantic pace that occurred in 2022.
Avison Young attributed the reduction to low vacancy and short supply rather than a lack of demand. The company expects absorption to rise in the second half of the year due to the preleasing of several large warehouse completions.
Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate.
Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s.
In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star.
Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.