August 30, 2006

Calgary boasts lowest vacancy rate on planet

CALGARY

A recent study has shown that Calgary’s economic boom has tightened the real estate market so much, the city has the lowest downtown office vacancy rate on the planet.

The second-quarter Calgary Economic Report shows the city rivals all major centres in the world.

“The vacancy rate for the downtown office market hit 0.6 per cent, the lowest vacancy rate of any major city in the world, and half of what the vacancy rate was in Calgary for the first quarter of 2006,’’ the report says.

And despite a number of construction projects in the core, the suburbs are looking more attractive to businesses, it says.

The reports adds that the local industrial real estate market has a vacancy rate of just one per cent.

Meanwhile, Calgary employers hoping for a reprieve from labour shortages will have to wait until 2010 at the earliest.

And the labour situation means major construction projects in the city could be delayed for years until enough workers can be found to satisfy demand.

“The labour market in Calgary is predicted to remain tight, at least until the end of 2009, due to ongoing and planned construction projects in Alberta,” the report says. “The possibility exists that major construction projects could be deferred or delayed to future years when there is less intense competition for labour.”

CANADIAN PRESS

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