Strong Q1 for Calgary industrial real estate market

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.

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