Calgary still the place to be for new developments

Despite a dip in the economy, Calgary is still a sought-after destination for developers, say industry experts.

"There's a western resiliency and an entrepreneurial spirit that [Calgary] rolls with it and looks for a brighter day in the future," said Christopher Wein, president of Toronto's Great Gulf Residential, which has submitted a development application to the City to develop a two-tower condo development in the East Village at 304 Macleod Trail S.E. across from the Harry Hayes Building.

Still plenty of activity coming to Calgary's commercial sector

Dueling industry reports are challenging expectations of how active Calgary's commercial market will be this year in wake of ongoing energy sector uncertainty.

Commercial real estate firm Cushman & Wakefield indicated in a recent study that Calgary's development cycle has "come to an end." It noted in the first quarter, the downtown office market alone experienced negative absorption of 1.2 million square feet, the largest quarterly decline in the city's history.

Charles Cochrane is CEO of Cochrane Developments Corp. (CDC), most recently behind the Meadows Mile Professional Centre overlooking Deerfoot Meadows.

Cochrane took some time to chat with CREB®Now about the state of Calgary's economy, hot spots for commercial developers and what he thinks is the city's best kept secret.

CN: What's new with CDC - Calgary?

CC: CDC is developing two lots on the Meadows Mile development. First, CDC is developing the Meadows Mile Professional Centre on Lot One.

Calgary's core office market could see vacancy increases that endure even after a recovery in oil prices

According to a new report from commercial real estate firm Cushman and Wakefield, the negative effects of the drop in oil prices could remain for up to a year after a rebound.

"Although the brunt of the declining oil price was felt in Q1 2015, it is expected that negative absorption will continue throughout 2015," said the report.

"Net rates will drop in the CBD (central business district), while the suburbs will be impacted to a lesser extent. History would suggest that we can expect tenants to begin taking back space once oil prices strengthen and the market regains confidence."

Developer Shape Properties has released renderings and a video on Deerfoot Mall's transformation to Deerfoot City.

"Deerfoot City will be unique to suburban Calgary, and will meet the growing demand from leading retailers and restaurants looking for creative new places with a vibrant, rich social experience and urban feel that differentiates them from traditional malls," said Darren Kwiatkowski, executive vice-president of Shape Properties.

Oil prices to impact commercial, retail and industrial sectors

Declining oil prices are expected to create added challenges for Calgary's commercial market over the next 12 to 24 months, according to a new report from commercial real estate firm Avison Young.

Yet, the report also notes that because the city is home to one of the "most productive and best-paid workforces in the country" where average weekly earnings increased 5.1 per cent year-over-year to August 2014, the long-term outlook for the local business community is still positive.

A 'fantastic' year for Calgary businesses despite dropping energy prices

Despite plummeting oil prices, commercial activity in Calgary remained robust throughout 2014, creating what many industry analysts are calling one of the most competitive markets in Canada heading into the new year.

"I think it's been a fantastic year despite the last quarter of the challenging energy prices. We had some great revenue streams that were available for the first three quarters of the year," said Calgary Chamber president and CEO Adam Legge.

"Building projects are strong. You see some of the new towers going up in the downtown. You've got a lot of major infrastructure projects.

Calgary Mayor Naheed Nenshi made his annual address at the Calgary Chamber's The State of Business in Calgary event today.

Here's some of what the mayor had to say:

On the drop in oil prices

"Yes, we're a little bit nervous about what's going forward, about what will happen but I'll remind all of you, we were also nervous at the end of 2008 and this city and this region, although we certainly had some pain, got through that better than just about everybody else in the world. And I think that that has a lot to do with the confidence and optimism of the people that live here."

Shopping communities within communities popping up all over Calgary

All over Calgary, a trend has begun.

Communities that once would've used a simple strip mall to provide residents with amenities are increasingly turning retail offerings into miniature town centres, plazas and High Streets, creating communities within communities.

Brookfield Residential recently announced its southeast community of Seton would be throwing their hat in the power strip pile, with plans for more than 800,000 square feet of retail space.

Calgary's commercial sector still going strong

The Calgary Tower's new, much-discussed exterior lighting system may serve as more than an eye-catching attraction. It might also shine new light on the city's burgeoning commercial sector, which, according to new statistics, is leading the country in a number of key categories for 2014.

Commercial leasing activity in the city is among the most active in Canada, with companies having snatched up 1.2 million square feet of space through the first nine months of 2014, according to commercial real estate firm CBRE Limited.