The results of a new study conducted by RE/MAX found that the Calgary and Edmonton commercial property segments are currently seeing a period of heightened activity and revenue.
In the 2017 RE/MAX Commercial Investor Report, which gathered data on local trends and developments from concerned boards and brokerages, the two Albertan cities have seen strong annual increases in the total dollar value of commercial real estate sales on the first half of 2017. RE/MAX pointed at the ongoing stabilization of the oil sector as the main reason for this development.
For the first six months of this year, the total dollar value of commercial real estate sales in Calgary was $1.43 billion, representing 55% year-over-year growth from the approximately $932-million total in the first half of 2016.
In the same time frame, Edmonton saw the total sales value of commercial properties exceeded $1 billion (the first time in 3 years), representing an annual increase of 39%.
“Alberta’s two largest markets have seen strong commercial property investment in 2017, as the worst of the recession that has defined the market over the last few years appears to be over,” according to Elton Ash, regional executive vice president with RE/MAX of Western Canada.
“Oil prices have remained relatively stable in recent months and the outlook for the province’s economy overall is optimistic. As a result, there is renewed confidence among investors in Calgary and Edmonton and total sales value is up in both cities.”
Edmonton, Calgary to be focal points of housing strength in Alberta
Stable economic growth, housing sectors in Prairie cities in 2017