Articles tagged with "Forecast"

The town of Calmar has begun construction on its first apartment building in 50 years, spurred by an influx of people moving there. This trend is attributed to the province's overall population growth and the high cost of living in areas like Edmonton, which are pushing residents to seek more affordable housing in rural communities. The project highlights the shifting dynamics in residential preferences as people prioritize more economical living options.

R2 Capital Partners has acquired two Class A office towers in Calgary's northwest for $160 per square foot, a 59% discount from their previous market value. The buildings, constructed in 2006, have a total of 119,030 square feet and are fully leased to 14 tenants, including government agencies and multinational corporations. This acquisition is part of R2 Capital's broader strategy for Calgary, with plans for further purchases in the area. The towers are considered suburban but are located close to downtown Calgary, providing a cap rate exceeding 12%.

Calgary experienced a 9% decline in home sales this August compared to last year, according to the Calgary Real Estate Board. The high inventory levels in the market are contributing to this drop in the average selling price of homes. Overall, the real estate market in Calgary is facing challenges with decreasing sales and price reductions.

A report from Concordia University examines potential policy reforms that could alleviate housing supply issues in major Canadian cities like Calgary, Vancouver, Toronto, and Montreal. It suggests that these reforms might help ease challenges in Calgary's housing market. The study emphasizes the need for strategic policy changes to boost housing availability. This could lead to improvements in the residential building sector in these urban areas.

Alberta is experiencing a surge in housing starts, with the first half of 2025 demonstrating a strong performance. The new home construction activity is on track to surpass the numbers anticipated for 2024. This trend marks a continuation of record-breaking achievements in the housing sector within the province. The growth in residential building bodes well for the ongoing development of Alberta's infrastructure and residential market.

The U.S. and Canadian leaders, Donald Trump and Prime Minister Mark Carney, are at odds over trade deal concepts, which could significantly impact Canadian commercial real estate. Differences in opinions revolve mainly around tariffs, with Trump favoring a straightforward tariff approach. Although differences remain, both leaders expressed optimism about reaching an agreement. The ongoing discussions could influence investment decisions, development projects, and leases across the Canadian CRE market.

The article discusses the potential economic implications of a new pipeline in Canada that could be funded by taxpayers. Economic forecasts and decreased oil prices make private investment unlikely, suggesting government intervention. Increased electric vehicle sales and global shifts towards renewable energy threaten future oil demand. The Trans Mountain project's challenges are highlighted, but potential economic benefits from energy exports are acknowledged.

The Calgary Municipal Land Corporation (CMLC) and the Calgary Stampede have partnered with Truman to develop a new hotel at Stampede Park, Calgary's Culture + Entertainment District. This 13-storey hotel, featuring 320 rooms and extensive amenities, is part of a broader effort to boost the area's appeal and address growing hotel demand due to increased visitors. The project represents a significant private investment in the area and reflects confidence in Calgary's development potential. Construction is expected to begin in late 2025 and complete in late 2028.

Private investors have increased their involvement in Edmonton's industrial property market, rising to 62% in the past year from an average of about 39% over the previous five years, according to Avison Young. Alongside these investors, companies buying properties for their own use also saw an increase, contributing to a more user-driven market. The industrial vacancy rate in Greater Edmonton fell to 4.2%, supported by strong tenant demand. This dynamic is seen as indicative of a rebalance towards market stability.

Calgary's office leasing activity increased significantly, with a 60% year-over-year surge, amounting to 1.6 million square feet in the first quarter. A decrease in sublease space and positive absorption contributed to reduced downtown vacancy rates. Despite the strong start, leasing activity might slow in the second quarter due to political and trade uncertainties. Office space conversions to residential and hotel uses also contributed to vacancy rate reductions in Calgary's downtown.