Calgary real estate is on a late-year roll
Commercial and industrial sales surged to over $ 2 billion this year as the housing market flirts with a 16-year record for transactions in November
With a turnover of 468 million to the Altus Group.
Meanwhile, property sales hit 2,110 deals in November, just short of the 2005 record as the sales to new listing ratio hit a staggering 100 percent.
Altus reports that the Calgary commercial real estate market recorded 115 transactions in the third quarter with a total investment of $ 468 million, representing a total investment of nearly $ 2 billion for the year. Total sales increased 37 percent compared to the first three quarters of 2020.
Industrial sales led the commercial and industrial asset investment parade with 27 transactions valued at $ 188 million in the third quarter. This sector was dominated by two major distribution logistics center deals. This was the purchase of 496,000 square feet of Canadian Tire distribution center for $ 69.7 million by the Skyline Commercial Real Estate Investment Trust (REIT); and the sale of the Valad Construction headquarters industrial and office complex for $ 32.18 million to Nexus REIT.
The Industrial-Commercial-Institutional (ICI) land sector was the second most active in terms of dollar volume, with 38 transactions totaling $ 83 million, up 62 percent from Q3 2020.
The multi-family rental housing sector saw 15 transactions for a total of $ 82 million, up 70 percent from the same point in time last year and only a minor decrease from the previous quarter.
Retail recorded $ 44 million in transactions, up 110 percent from Q3 2020.
The largest retail sale was the $ 8.35 million purchase of the Hansen Ranch Plaza, a nearly 12,000 square foot retail hub in northwest Calgary, which was bought by local investors.
“Calgary’s ailing office market was flat with five transactions valued at $ 15 million, a negligible change from the year-ago quarter,” noted Ben Tatterton, data solutions manager at Altus, who shared the Calgary report with national research manager Krut DSesai . created.
The groundbreaking sale of the Bow office tower will be registered in a future quarter, according to Altus.
The two-million-square-foot Bow Tower was bought by Oak Street Real Estate Capital, Chicago, from Toronto-based H&R REIT for $ 1.216 million in August. The deal is expected to close by the end of this year.
The Calgary Real Estate Board (CREB) reported a rush of homebuyers in November.
“Lending rates are expected to rise in the next year, which has created a sense of urgency among buyers who want to get into the housing market before rates rise,” said CREB chief economist Ann-Marie Lurie. She added that supply has tightened, which has led to rising prices.
According to Lurie, the benchmark composite home price was $ 461,000 in November, up nearly 9 percent from November 2020.