Ownership model opening new doors for developers, businesses

Calgary's emerging office condo market remains hot this year, according to Barclay Street Real Estate.

The commercial real estate brokerage noted in a report earlier this month that development and sales activity in the local market has been robust thus far in 2016, which, "has led to a fertile market in which developers are diversifying their portfolios among different real estate assets such as office buildings, hotels, mixed-use retail and residential real estate by adding office condo buildings and professional centres to their holdings."

Commercial vacancy rates near all-time highs, according to reports

A new report is summarizing Calgary's downtown office market in one word: scary.

CBRE Ltd. first-quarter results released earlier this month show that the vacancy rate in Calgary's core ballooned to 20.2 per cent during the first quarter of 2016. That's up from 11.8 per cent the same time last year, and 17.6 per cent from the fourth quarter of 2015.

Greg Kwong, who heads up the commercial real estate firm CBRE Ltd's office in the heart of the oilpatch, expects the worse is still to come for Calgary's office market as the local economy sputters in response to depressed oil prices.

Highland Park reimagining could invigorate northwest community 

The former Highland Golf Course in northwest Calgary could be host to a new kind of activity in the form of a major redevelopment.

Developer Maple Projects Inc. recently shared plans for its "reimagining" of the 21-hectare site – which would include up to 2,100 housing units as well as a commercial development along Centre Street N. – at an open house which drew, among others, members of the local community association, who believe the development could provide a boost to the area.

"Absolutely, it can be a huge benefit for the community,"

"Absolutely, it can be a huge benefit for the community," said Paul Engler, chair of the development committee for the Highland Park Community Association. "We are looking very much forward to it. We are working with the developer to come up with something that's awesome for them, for our future neighbours and for our existing neighbours."

Homeowners to benefit from redevelopment, says company behind initiative

An ambitious multi-year plan to breathe new life into Deerfoot Mall in north Calgary stands to benefit nearby homeowners in a big way, says the company behind the massive redevelopment.

In early 2016, Vancouver-based Shape Properties announced it would be transforming the decades-old property at Deerfoot Trail and 64th Avenue N.E. from a traditional closed mall into a state-of-the-art open shopping centre dubbed Deerfoot City, complete with everything from a restaurant campus to style district.

"For local property owners, Deerfoot City is nothing but a good story," said Shape Properties executive vice-president Darren Kwiatkowski, whose company purchased the site from Ivanhoe Cambridge in 2011 for a reported $78 million.

Commercial market outside the core still active

Calgary's suburban commercial market is bucking the trend and chugging along in the face of Alberta's current economic downturn, say industry experts.

"The perception is that all commercial real estate is facing challenging times, but the reality is our industrial market and our suburban office market and our retail market are very resilient," said Colliers International managing director and broker Joe Binfet.

"And, while I wouldn't say robust, I would say active."

Redevelopment is being envisioned as a 800,840-square-foot mixed-use hub.

Marshall Tittemore Architects (MTa) confirmed it has submitted a development permit application for the redevelopment of the Stadium Shopping Centre that would create a proposed 800,840-square-foot mixed-use hub in Calgary's northwest.

Over the past nine months, MTA has been working in collaboration with current shopping centre owner Western Securities, as well as Stuart Olsen on the proposed development.

"MTa is excited to continue its support to the entire team in professing this proposed development in the near future, transforming this area into a social diverse mixed-use urban environment," the company said in a release.

Provincial levels in fourth quarter steady; up on annual basis

Non-residential construction levels in the province surprised many in the fourth quarter of 2015, remaining relatively flat when compared with the same period the previous year at $2.74 billion, according to Statistics Canada.

"Signs of the economic slowdown are all around us in Alberta, but the one surprising indicator where we have yet to see much downturn is construction activity," said ATB Financial chief economist Todd Hirsch.

"Indeed, if a Martian landed in downtown Edmonton or Calgary today, it might well assume that the province is booming."

Commercial vacancy rates represent market outlook

Nearly one out of five floors in the office towers that make up Calgary's famous skyline now sit empty, according to CBRE, which anticipates vacancy rates to increase further in 2016.

"Oil and gas companies on every level – from junior start-up to intermediate to major companies – everyone has gone through some form of layoff and therefore and have excess space," said Greg Kwong, managing director at the commercial real estate services firm.

Calgary's downtown office market ended 2015 with vacancy rates topping 17.4 per cent – nearly double from 9.8 per cent in 2014, according to CBRE's 2016 Commercial Real Estate Market Outlook.

Vacancy rates spike as downturn makes its presence felt

Calgary's commercial sector has not been spared from prevalent weakness in the provincial economy, with prime spaces in the city left empty for most of 2015.

Vacancy rates in Calgary's commercial office sector increased by 5.8 per cent from the beginning of the year to the end, noted commercial real estate firm Avison Young. In downtown specifically, vacancy jumped 7.2 per cent, which accounted for approximately three million square feet.

In comparison, office vacancy rates tripled from four to nearly 12 per cent during the last economic downturn in 2008/09.

New vision for Paskapoo Slopes area

A controversial mixed-use project slated for west Calgary has revealed its development plan.

Located along the Trans-Canada Highway, Trinity Hills would bring 700,000 square feet of retail space, 250,000 square feet of office space along with 1,500 residential units to the East Paskapoo Slopes area adjoining Canada Olympic Park.

The plans for site, which had been met with fears of over-development from some local residents, calls for nearly three million square feet in total development which would consume roughly one-third of the existing green space.