Bedrock calling the bottom of the commercial market

July 3, 2018 admin

Calgary entered the 2018 commercial market with a cautious optimism. This is a relief from a two-year recession where vacancy rates increased from 8.52% at the beginning of 2015 to 27.06% by mid 2018.

Calgary Downtown Office Marketing Forecast report — Source: Colliers International Research and Forecast Report Calgary Downtown Office Market First Quarter 2018

West Texas Intermediate (WTI) has been trading between $60-70 a barrel since late December. However, Western Canadian Select (WCS) has been trading at a discount to WTI and exporting Alberta oil is proving difficult as pipeline approvals are delayed. This has slowed the growth potential for Calgary’s energy based economy

We are predicting that the bottom of the commercial market will be in sometime this year. With that being said the market has experienced a flight to quality space. Top quality pockets of 5,000 sq. ft. or less are being quickly leased in the current market.

What does this mean to the office user? If you intend to take advantage of the renter’s commercial market right now, this next 12-18 months may be the most opportune time to look for savings in your rental expense or that chance to upgrade to A quality space at rents tenant’s paid for C space in 2014 at 6% vacancy. The window is wide open now but maybe closing soon.

graph average asking rates for commercial real estate in calgary — Average asking rates for commercial real estate in Calgary.
Source: Avison Young Q1 2018 Market Report

Interested in seeing what’s out there? Contact us today and we’ll help you find the perfect deal for your business.

Bedrock Featured in CREB

February 10, 2017September 15, 2018 jmSavard45

John Savard was recently quoted in CREB Now as an expert in the office leasing market. Below is a portion of the article. Read the Full Article.

Commercial real estate felt the pinch of a slumping economy in 2016 and Calgary’s suburban office market was no exception.

From headleases – between a landlord and a tenant – to subleases – where a tenant puts some of their excess space on the market – commercial real estate outside the core had its challenges.

“A significant amount of very, very large blocks of vacancies are available on the sublease market and the headlease market, for that matter, and we have not seen a great number of tenants going in to take those spaces,’’ said John Savard, principal, office leasing specialist with Bedrock Realty Advisors Inc.
Suburban office vacancy rose 0.3 per cent during the fourth quarter of 2016 to 22.6 per cent, according to a recent Barclay Street Real Estate report.

John news-page-001 — John Savard of Bedrock Properties Ltd., discusses Calgary’s commercial real estate market with CREB Now. Click photo to view full article.

Bedrock proud to help B&A Planning Group with Relocation

December 1, 2016December 1, 2016 jmSavard45

B&A Planning Group - Calgary Herald Article As featured in the Calgary Herald this week, Bedrock Realty had the pleasure of helping B&A Planning Group take advantage of the current market and relocate their offices to an entire floor of the prestigious west tower of Penn West Plaza.

Read the whole article by David Parker in the Calgary Herald here.