Calgary’s commercial market continues to rise to new heights with second quarter investment in the sector totaling nearly $1 billion.
According to a report from RealNet Canada Inc., investment in the sector climbed by 28 per cent in the second quarter of 2013 for a total of $925.52 million.
The report showed while total investment in the city rose substantially, the number of total transactions actually declined by 16 per cent, an indicator that large scale transactions were responsible for the gain.
The report listed the three developments as the Jacobs building ($171 million), Quarry Professional and Quarry Parkside A&B ($154.84 million) and SMART Technologies ($78 million).
According to Paul Richter, RealNet’s director of research, this trend provides some cause for concern.
“Calgary’s commercial real estate market is always susceptible to performance fluctuations due to highvalue transactions,” he said. “In this second quarter, three office market transactions represented 44 per cent of the overall investment.”
The main contributor to the overall rise came from the office sector, where as mentioned by Richter, three transactions accounted for more than $400 million of the sector’s $436.74 million total. The $400 million figure in office investment in the second quarter represents a 101 per cent increase from the first quarter.
Calgary’s retail sector also showed significant improvement in the second quarter, with investment rising by 69 per cent to $55.09 million.