Commercial real estate investment in the Calgary and Edmonton markets increased in 2018, according to a new report by the Altus Group, a leading provider of software, data solutions and independent advisory services to the industry.
In the fourth quarter of 2018, the Calgary market saw $1.2 billion in commercial sales, bringing the annual total up to $3.7 billion. Total investment in 2018 was up 16 per cent and is the third consecutive year of growth. But 2018’s total was down 23 per cent from the high mark of the last decade, set in 2012.
Ben Tatterton, manager of Data Solutions at Altus Group, said, “2018 saw increases in investment across all sectors when compared to the previous year, however this has not translated into the higher volumes seen in the past. What it has demonstrated is that the market is continuing along a path of recovery, and until some of the uncertainty surrounding the greater economy is resolved, it is likely that 2019 will follow a similar path as 2018.”
In the Edmonton market area commercial sales volumes increased to $3.99 billion in 2018, up from $2.88 billion in 2017. There was $906 million of investment activity in the fourth quarter.
“The annual results indicate a significant improvement over the previous year, however, it should be noted that one large transaction in the office sector and several apartment sales that were agreed upon at a prior date, bolstered the totals seen in 2018. Nevertheless, the interest in the market from various types of purchasers seen through 2018 is a positive note, and will probably continue in 2019,” said Tatterton.
Mario Toneguzzi is a Troy Media business reporter based in Calgary. He writes for Calgary’s Business.