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Calgary Industrial Insights – Q1 2024

April 23, 2024
Calgary Industrial Insights – Q1 2024
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Calgary Industrial Market Update: Q1 2024 πŸ“Š

πŸ“ˆ Vacancy Rate: 3.7% (rose from 3.1% last Q)

🏒 Net Absorption: 1.0 million sq ft (showing resilient demand)

πŸ’΅ Average Rental Rates: $10.67/sq ft (unchanged)

Calgary’s industrial sector saw some interesting shifts in Q1 2024:

Vacancy Trend: Upward trend continued, reaching 3.7% from 3.1% last quarter due to new buildings and sublease opportunities.

Rental Rates: Despite vacancy increase, rates remained stable at $10.67/sq ft, with no expected downward pressure.

Vacant Square Footage: Majority (58%) comprised of large bay product over 100,000 sq ft.

Net Absorption: Positive, at over 1 million sq ft, though lower than last quarter’s 1.8 million sq ft.

New Deliveries: 2.2 million sq ft delivered, notably less than Q4 2023, with Balzac leading at 39%.

Submarket Highlights: Negative absorption in NE and SE due to large vacant buildings coming available to lease market.

Outlook: With a quarterly decline in the construction pipeline, partly justified by resulting deliveries from previous quarter’s higher construction, developers will be closely monitoring absorption rates, tenant demand, and speculative inventory projections to balance timing of supply and demand.

Historically the Calgarian development community has navigated these natural fluctuations in new supply (deliveries), with tenant demand, within a healthy range.

 

Calgary Industrial Insight Report Q1 2024 (1)
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