community cornerstones A look at Calgary and area’s rich history of both new and old corner stores.
A6
sticks or stones?
Olds & Didsbury Feature
What works best in your yard and garden donna balzer A11
A12 FREE apr 17 to apr 23 2015 issue 05-14
real estate news from industry experts
editorial 403-781-1324 advertising 403-263-4940 crebnow@creb.ca
cautious commercial Calgary’s core office market could see vacancy increases that endure even after a recovery in oil prices. Cody Stuart
managing editor
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ccording 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.” As a result of declining oil prices – which have remained close to $50 US a barrel for West Texas Intermediate since mid-January after topping the $100 mark for much of 2014 – the report also speculates projects proposed for downtown could be put on hold until more anchor tenants are found. Through the first quarter of 2015, vacancy rates in the city have risen to 8.5 per cent, up from 6.3 per cent a year ago, with the downtown market experiencing 1.2 million square feet of negative absorption – the largest such number ever seen in the city, according to Cushman and Wakefield.
Along with the uptick in the number of offices being vacated in the core, average rents have also declined, falling from $26.40 per square foot in the fourth quarter of 2014 to $24.93 in the first quarter of 2015, according to commercial real estate firm CBRE Limited. “We are nearly nine months into the decline in oil prices and the Calgary office market has responded as expected,” said CBRE research director Ross Moore. “Both sublet space and direct vacancy are on the rise, but have yet to reach levels recorded during the last drop in oil prices in 2008.” Commercial real estate firm Avison Young has also noted many companies in the city with leases set to expire in the coming months are taking a “waitand-see” approach, which has been evident in the lack of activity in the downtown core. “The downtown office market is a very quiet business environment today,” said Todd Throndson, managing director of office leasing for Avison Young Calgary.
commercial A3
Todd Throndson, managing director of office leasing with Avison Young, said many Calgary companies are exercising caution in the commercial market in the wake of falling oil prices.
3,191 MAR13 3,476 APR13 3,714 MAY13 2,998 JUN13 2,725 JUL13 2,773 AUG13 2,794 SEP13 2,521 OCT13 1,825 NOV13 DEC13 971 2,396 JAN14 2,711 FEB14 3,319 MAR14 3,753 APR14 4,327 MAY14 3,817 JUN14 3,219 JUL14 3,147 AUG14 3,259 SEP14 2,919 OCT14 2,093 NOV14 1,381 DEC14 3,288 JAN15 2,950 FEB15 3,136 MAR15
CITY OF CALGARY
MLS® NEW LISTINGS* MAR ‘13 – MAR ‘15
*All statistics based on monthly data compiled by CREB® via MLS® activity. Includes detached, attached and apartment.
cody stuart, Managing Editor
Canadian starts ‘steady’ between February and March
contents news briefs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A3 five things. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A4 Multiple offers
edmonton. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A7 Suite support
CREB® STAFF
mortgage rates. . . . . . . . . . . . . . . . . . . . . . . . . A10
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pop the question. . . . . . . . . . . . . . . . . . . . . . . A13
ational housing starts trended down slightly in March, easing to 179,016 from 180,236 in February, said the Canada Mortgage and Housing Corp. (CMHC). “Despite recent month-to-month changes in the SAAR, the trend in housing starts, essentially held steady in March compared to February,” said Bob Dugan, chief economist with CMHC’s Market Analysis Centre.
industry A3
Charles Cochrane
funky homes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A14 Daring to be different
towns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A15 Increased inventory
map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B1 open houses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B23 @crebnow
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