Industry welcomes influx of rental units coming on stream

An increase in the number of purpose-built rentals coming onto the market over the next few years is good for Calgary and the communities they reside in over the long run, say experts

According to Canada Mortgage and Housing Corp.'s (CMHC's) Fall 2015 Rental Market Report for Calgary, 1,216 apartment rental units were under construction as of September 2015, a 53 per cent increase from the year before.

This comes after purpose-built rental apartments increased for the second consecutive year in 2015. CMHC reports 865 purpose-built rental units came on the Calgary market in 2015, bringing the total number of such units in the city up to 35,227.

Commercial vacancy rates represent market outlook

Nearly one out of five floors in the office towers that make up Calgary's famous skyline now sit empty, according to CBRE, which anticipates vacancy rates to increase further in 2016.

"Oil and gas companies on every level – from junior start-up to intermediate to major companies – everyone has gone through some form of layoff and therefore and have excess space," said Greg Kwong, managing director at the commercial real estate services firm.

Calgary's downtown office market ended 2015 with vacancy rates topping 17.4 per cent – nearly double from 9.8 per cent in 2014, according to CBRE's 2016 Commercial Real Estate Market Outlook.

Vacancy rates spike as downturn makes its presence felt

Calgary's commercial sector has not been spared from prevalent weakness in the provincial economy, with prime spaces in the city left empty for most of 2015.

Vacancy rates in Calgary's commercial office sector increased by 5.8 per cent from the beginning of the year to the end, noted commercial real estate firm Avison Young. In downtown specifically, vacancy jumped 7.2 per cent, which accounted for approximately three million square feet.

In comparison, office vacancy rates tripled from four to nearly 12 per cent during the last economic downturn in 2008/09.

Canadian Tire's decision to open a new location in the Beltline marks the latest in a series of announcements where major retailers are refocusing on the Calgary market. And while past once confined to the suburbs, this new round of retailer interest is bringing their offerings to new and once unconventional neighbourhoods.

CREB®Now takes a look at five of the latest announcements.

Canadian Tire:
Formerly accessible only to those willing to hop in the car, Canadian Tire will be bringing its wide range of automotive, sports and leisure and home products to the newly redeveloped 90,000-square-foot, three-storey Mount Royal Village building at 8th Street and 16th Avenue S.W. Scheduled to open in "about" two years, the Canadian Tire Express store will be similar to one in midtown Toronto, which offers about a quarter of the goods available in the retailer's largest stores.

Beltline community home to relaxed atmosphere, pedestrian and cyclist accessibility

P.J Lavergne has called the Beltline home for the last 10 years.

"It's so close to everything," he said. "I don't drive, so it makes life easy. I'm, at most, a 10-minute walk from anything I could ever need."

Lavergne, who heads local rock 'n roll band Napalmpom, added the area's relaxed atmosphere comes through in the attitude of its residents.

Calgary builders team up to bring assisted-living facility to Beltline

Calgarians lacking a proper place to call home are set to be given a helping hand thanks to a collaborative effort from 12 Calgary-area builders.

Stepping Stone Manor, which will be the first of eight apartment buildings to be constructed in the next four years, will be a 30-unit facility in the Beltline community.

The Calgary Homeless Foundation and the RESOLVE Campaign are joining forces in the development of an assisted-living apartment in the Beltline for 30 formerly homeless individuals.

"The Government of Alberta is proud to support Stepping Stone Manor, and future apartment buildings that help low-income Albertans obtain affordable housing," said Greg Weadick, acting minister, Municipal Affairs.