CB Richard Ellis (CBRE) is cautiously optimistic about its forecast for Calgary’s real estate market in its 2017 national outlook, released on Monday.
The commercial real estate firm is predicting Calgary’s real estate cycle has bottomed out and expects to see a greater number of large pension funds and corporations looking to buy in Alberta.
“Their main focus is on AA, AAA, or B and C-grade, and we just happen to have more of that available to buy,” said Greg Kwong, the managing director for CBRE Calgary.
He said companies are starting to hire on a part-time contractual basis and more businesses are going to the market to raise money.
However, he told News Talk 770 that oil firms have said they will not be any hiring full-time equivalents (FTEs) until oil is consistently above $60 per barrel.
Kwong said CBRE is calculating a 25 per cent office vacancy rate in Calgary, with that number rising to 28 to 30 per cent in the third quarter of 2017.
““There’s three or four cranes that are building office towers,” Kwong said.
“A few of those towers are going to be delivered by the end of this year, or the first quarter of next year. So, that should shoot the amount of availability up as well.”