Alberta’s commercial sector mixed

Two reports on the commercial real estate sector in Alberta show mixed fortunes for the market.

In the Greater Calgary Area, investment in commercial real estate increased in the second quarter of 2016 to $909 million worth of sales transactions, up 104 per cent from the first quarter. Office, retail and industrial sectors gained while residential and ICI land and apartment sectors declined.

Half of the activity in the sector came from 9 office transactions which totalled $446 million and $417 million of that was the agreed sale of Imperial Oil Campus in Quarry Park.

“Overall investment levels in the first half of 2016 were similar to the first half of 2015, and well above the levels recorded in the challenged 2009/2010 period,” noted Paul Richter, Director, Altus Data Solutions Canada.

Meanwhile in Edmonton, total sales of land and buildings in the commercial sector fell 7.7 per cent year-over-year in the first six months of the year. The land sector was the largest drag on activity and dollar volume (down 4.6 per cent to $870 million.)

There was growth though in building sales with a 13.1 per cent rise year-over-year with 187 sales totaling $679 million. This was led by commercial building sales which were up 47.6 per cent year-over-year and followed by industrial building (up 15.9 per cent) and the multi-family market (up 2.5 per cent).

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