CRESA report shows downtown office vacancy still rising
Posted Jun 2, 2016 12:38 pm.
This article is more than 5 years old.
As the downturn drags on in Calgary, the downtown office vacancy rate is entering a place it hasn’t been in since the 1980’s.
A report from CRESA, which represents office tenants, says there are currently eight million square feet of vacant office space available in downtown Calgary.
There’s also three million more square feet under construction, as well as two million square feet of “ghost vacancies”, which report author, CRESA Principal and Broker Adam Hayes explains are unoccupied offices still being leased by companies.
“When things do turn, they’re going to have to fill that internal vacancy before they have to look to the external market for any additional growth, so it’s just going to prolong the recovery in the downtown core.” Hayes said.
He says it all adds up to push the vacancy rate to nearly 25%.
“You’re actually seeing some companies from outside the downtown core looking to get back in, because it’s a good time to try and negotiate leases on a long term basis.” Hayes said.
Charities and not-for-profits can also benefit, as companies look to generate good PR by donating space.
