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Old 11-26-2008, 11:08 PM
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Default Calgary Office is in Over Supply, Crsis!!

Explains why in Downtown Calgary there are 'For Lease', 'For Sale' posted everywhere.

Calgary's office demand to soften in 2009: Report

Mario Toneguzzi, Calgary Herald

Published: Tuesday, November 25, 2008
Demand for office space in Calgary will ease in 2009 as a result of the economic downturn, says a new report released Tuesday by Cushman & Wakefield LePage.
The global real estate firm said in its Outlook '09 Annual Market Review that the drop in the price of oil and the corresponding slowing of business activity in the Calgary market will lead to the lessening of demand for office space.
"It is also expected that there will be further consolidations and mergers in 2009, which may place sublet space on the market and put upward pressure on vacancy rates," said the report."The full impact of new supply will not be felt in Calgary until 2010-2012, when vacancy could climb as high as 10-12 per cent. That said, some projects not yet out of the ground may scale back or hold until the economy stabilizes and the local market conditions are more favourable."
The report said the downtown core has had limited new supply delivered this year, with one million square feet due in 2009 and up to 3.5 million square feet due in 2010.
While demand this year has been strong, "Calgary is now experiencing a pause in decision making as a result of the global economic downturn," said the report.
"With low vacancy rates, class A-AAA remains in high demand from oil and gas companies," said Cushman & Wakefield LePage. "Through 2008, there was a trend amongst some engineering firms to make the move to more affordable space in the suburban markets, freeing up some large blocks of space in the core, and slightly easing the tight supply."
Calgary's downtown office vacancy rate is about 4 per cent.
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