The Calgary industrial real estate market started the year off with a bang, posting two million square feet of positive absorption – the largest amount in a quarter since the third quarter of 2012, says a new report by CBRE.
Coupled with strong quarterly absorption in the last two quarters of 2020, the market is on an impressive streak, said the commercial real estate firm.
“As a result, the availability rate decreased by 140 bps quarter-over-quarter to 7.8 per cent,” said the report. “COVID-19 knock-on effects and the rise in e-commerce spending continue to drive demand for warehouse space as retailers and distributors adapt to accommodate consumer demand and create additional flexibility within their supply chain networks.”
The report said a shortage of large format space and development land coupled with rising rental rates nationwide continues to drive user demand to Calgary.
“Abundant development-ready land in concert with attractive economics and quick development timelines has established Calgary as an excellent alternative for industrial requirements when compared to other major Canadian markets,” said CBRE.