Calgary office net asking rents increased across all classes in the second quarter, says a new JLL report.

Heavily dependent on the energy industry, Calgary’s office market has been decimated in recent years by the COVID-19 pandemic and severe oil and gas price disruptions.

“The class A market will continue to have the highest demand downtown, especially in the central core,” says the report.

Northwest class A average net asking rates jumped 24.8 per cent to $19.74 from $15.82 in the first quarter. JLL attributed increases in suburban markets to a flight-to-quality trend seen downtown.

Year-to-date net absorption fell 218,084 square feet (sf) as construction was flat and total availability declined 21 per cent. The Alberta government removed 200,00 sf of class A office space from the market by purchasing a building from Smart Technologies.

Located in the university district, the property will be converted into charter schools.