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.
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.