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.
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.
Interested in seeing what’s out there? Contact us today and we’ll help you find the perfect deal for your business.
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.
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.
Commercial Lease Calgary - Office Space Rental ON
What Our Clients Are Saying
I would like to take this opportunity to thank you for helping us secure our new office premises. Your professional expertise and attention to detail made finding new office space a pleasurable experience.
Your understanding of the landlord’s lease and what the landlord’s giving points were helped our firm secure very favourable lease terms. We are confident that you represented our firm’s best interest throughout the entire process.
Your knowledge of the office market saved us money! The recommendation of asking for a free rent period directly helped our firm save a significant amount of money to off-set our moving costs.
Without hesitation, I would recommend your leasing services to my clients, friends and business associates.
Robert B. Ramsay
President, Vantage Engineering Inc.
ACM Automation used John Savard’s services for our office lease renewals in 2003 & 2008. In both negotiations, we did not want to move and were concerned that our landlord would use that against us. John was able to present market comparable alternatives to the landlord so the landlord now had to compete against its competition to earn our tenancy. I strongly feel that John’s involvement created the leverage that ACM Automation required to secure ACM favourable lease terms.
In the fall of 2011, ACM Automation needed to expand our business. A simple solution presented itself as there was vacant space in our building. Expansion in our building seemed easy as we still had 2 years left on the lease that John had negotiated 3 years prior. We thought we had a solution figured out in our direct discussions with our landlord’s agent but I called my trusted real estate broker for his opinion. John advised us on the office market. It seemed to be a reasonable solution to expand in our building given the limited recoveries that we could achieve in the current Sublease market that would make a move too costly.
Owner, ACM Facility Safety
John has been my office space advisor for over 7 years now. His initial role was vital in relocating to our previous location 5 years ago.
In our most recent relocation, our company growth plans crated uncertainty over just how much more office space we would require and therefore crated a delay in our ability to make a timely decision. This delay challenged our search choices such that only a few options existed.
Our search parameters were also limited by location. Our firm’s business requires our location to be close to both City Hall and major transportation arteries such as the Memorial Drive and Deerfoot Trail. John was able to increase the set of office location options by recommending a building in the west end of downtown. I trusted johns’ knowledge of our new building’s ingress and egress of traffic. I have since discovered that John’s recommendation has saved our firm a significant amount of travel time.
John successfully navigated our limited choices and was able to successfully negotiate a very favourable lease for our firm in a location that has turned out better than I would have thought. John’s knowledge of the Landlord’s Lease revealed the giving points that provided us the comfort of a lease that would protect our firm.
Without Hesitation, I would recommend John Savard’s office leasing services to my friends and colleagues.
Brown & Associates Planning Group
John has been our trusted source for the last twelve years, and our last three office locations. He is incredibly knowledgeable and helped us get a prime location that exceeded our expectations.
John takes the pain out of an office move, without a doubt I would recommend working with BedRock Realty.