Oil prices set to subdue Calgary office market
Commercial real estate in Calgary and the surrounding areas is set to suffer a downturn as a result of the low oil prices. A new report from Colliers International predicts a “challenging environment” for the office market as energy companies reconsider their needs and the wider economy increases cautiousness. The report shows that this year demand for office space has been lower than average despite good levels of activity but it expects to see a glut of demand due to downsizing and increased subletting. This year will end with a vacancy rate of 8.5 per cent which is up from 7.3 per cent a year ago.