Unsurprisingly, Calgary’s commercial and industrial real estate markets have faced some turbulent times, particularly in the past few years. With tax changes and shifting market dynamics, 2024 is shaping up to be another year of ups and downs.
Here are some of the key things to know about Calgary’s commercial real estate market for 2024.
Calgary’s Commercial Real Estate Market
One of the most significant factors influencing activity in 2024 was the introduction of new capital gains tax regulations. These regulations spurred a wave of transactions as property owners moved quickly to sell assets before the new tax implications took effect. This rush led to a record number of commercial real estate deals in June 2024, highlighting the market’s responsiveness to legislative changes.
However, this surge in activity doesn’t paint the complete picture of Calgary’s commercial real estate market. The office sector, in particular, has struggled with elevated vacancy rates. Many businesses have shifted to hybrid work models, leaving significant office space unoccupied.
However, there is hope in sight, as some property owners want to transform underutilized office buildings into mixed-use developments, including residential units.
The Industrial Real Estate Market
The industrial market remains more resilient. Although vacancy rates have seen a slight uptick, the demand for industrial space is still strong due to Calgary’s strategic position as a logistics hub. Industrial properties attract interest from investors looking to capitalize on growing sectors such as e-commerce and distribution. The rental growth in this sector has slowed compared to previous years but remains steady, offering solid returns for those involved in industrial real estate.
What Can We Expect for the Rest of 2024?
Looking ahead, Calgary’s commercial real estate sector will continue to be shaped by broader economic factors, including the Bank of Canada’s interest rate cuts. Lower borrowing costs are expected to boost investor confidence, particularly in the industrial sector, where demand remains strong. However, caution remains as many investors await further rate cuts before making significant moves.
Understanding these shifting market conditions is crucial for those looking to enter the commercial or industrial real estate markets in Calgary in 2024. From office conversions and industrial growth to the impact of capital gains tax changes, the Calgary market offers diverse opportunities for savvy investors and business owners.
With a focus on adapting to trends and leveraging opportunities in key sectors, those involved in Calgary’s commercial real estate scene will be prepared to navigate these challenges while capitalizing on growth areas in the coming months.
Commercial and Industrial Real Estate Services in Calgary
At CMS Real Estate Ltd., we are a full-service commercial and industrial real estate brokerage with over 40 years of experience in the Calgary commercial real estate market. From sales and leasing to mortgage brokerage and property management services, we can assist you with all your commercial real estate needs.
Ready to learn more about our commercial real estate services? Contact CMS Real Estate today.
- Gerry Macdonal Sr: (403) 219-0151
- Gerry Macdonald Jr: (403) 219-0161
- Jessica Macdonald: (403) 291-0425
Blog posts from CMS Real Estate are for general information only. The content should not be considered real estate management or investment advice. If you are in need of professional real estate advice, please contact our team.