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Latest construction cycle winds down; market healthy as demand paces deliveries
As an asset class within CRE, industrial has recently been the subject of intense focus as strong fundamentals and portfolio reallocations continue to favor this segment of the market. Calgary has added over 7.0 million square feet (msf) of industrial inventory in the last year, an increase of 4.6%. Looking at the last four years of activity, Calgary has added close to 20.0 msf of space, a significant increase of 13.2%.
Despite substantial increases to inventory, Calgary is not in danger of being over-built as this recent wave of new construction winds down. While vacancy has increased by 100 basis points (bps)—largely driven by speculative deliveries in the Balzac submarket—it remains low at 3.4% overall.