The price gap between Calgary industrial serviced and unserviced land is narrowing, says a new Avison Young report.

Also, City of Calgary lands are selling for higher prices.

The report shows that land with full municipal servicing is selling for about $600,000 per acre, while unserviced land has been earning approximately $500,000 per acre. Meanwhile, City of Calgary land is fetching upwards of $700,000 per acre.

By comparison, unserviced land sold for about $200,000 per acre in 2020, while serviced land traded for more than $500,000 per acre. The price of unserviced land has risen steadily since then, while service land prices have fluctuated.

But overall prices per acre continue to rise.

“We anticipate the price gap will further narrow as more users absorb more space and as servicing costs continue to increase, pointing to the desirability of both serviced and unserviced land,” said Avison Young.

Most of the supply is in Balzac and other Rocky View County lands further east, which are considered part of the Calgary market. The City of Calgary land sales apply only to sales within the municipal boundaries.

Demand is being driven by owner-users, who are seeking outside storage areas. Examples include oilfield service firms and manufacturing companies.2.

Photo: oasisamuel / Shutterstock.com