Calgary apartment vacancy rate decreases in 2012
Down to 1.3%
CALGARY — The apartment vacancy rate in the Calgary region averaged 1.3 per cent in October, down from 1.9 per cent last year, according to Canada Mortgage and Housing Corp.’s Fall Rental Market Survey released Thursday.
“Employment growth and higher incomes, supported by Calgary’s expanding economy, continued to attract migrants and increased demand for rental units,” said Richard Cho, senior market analyst in Calgary for the CMHC.
The apartment crunch will likely continue as the CMHC is forecasting 20,000 net migrants to the Calgary area in 2012 after 11,200 net migrants in 2011.
“Alberta is once again seeing some very strong interprovincial migration these days and many of these people are arriving in Calgary,” said Todd Hirsch, senior economist with ATB Financial. “Typically before looking at buying a home, the recently-arrived will rent an apartment. That’s where a lot of the strong demand is coming from, and it’s pushing down the vacancy rate in the rental market.”
Recently, Sam Kolias, chairman and chief executive of Calgary-based Boardwalk Real Estate Investment Trust, told the Herald that the local rental market continues to see high demand as people keep moving to the province.
In the REIT’s third quarter, which ended September 30, it has 5,310 rental units in Calgary and the occupancy rate was 99.34 per cent, up from 98.89 per cent last year.
The apartment vacancy rate in most zones in Calgary declined from the previous year, said the CMHC report. Areas close to the downtown where there is a high concentration of employers continued to have among the lowest vacancy rates in the city, said the CMHC.
The vacancy rate in the Downtown zone reached 0.5 per cent in October, down from 1.0 per cent in October 2011.
The strong demand for rental accommodations combined with lower vacancies has led to an increase in rental rates in Calgary. Same-sample rents increased 6.1 per cent in October, following a 1.8 per cent rise in the previous year. Bachelor units and two-bedroom units recorded an increase of 7.4 per cent and 5.9 per cent, respectively. The average same-sample rent for three-bedroom units increased 4.2 per cent from a year earlier, said the agency.
Overall, the two-bedroom rent in Calgary averaged $1,152 in October, up from $1,087 last year. The Downtown and Beltline had among the highest average two-bedroom rents in the Calgary CMA at $1,240 and $1,222, respectively. The Southeast and Other Centres recorded the lowest two-bedroom rents in October, averaging $998 and $1,005, respectively.
Vacancies for rental condominium apartments declined to 2.1 per cent in October, down from 5.7 per cent in October 2011. The condominium rent in CMHC’s 2012 survey averaged $1,288 per month, down from $1,378 last year.
“Condominium apartment rents are typically higher compared to units in the purpose-built rental market as the buildings are generally newer and may include additional amenities such as a fitness centre, entertainment room, and heated underground parking,” said Cho.
Don Campbell, president of the Real Estate Investment Network in Canada, said the low vacancy rate wil lead to two things.
“Strong upward pressure on rents across the board, at all levels. Upward pressure on resale housing market first in 2013, then new home sales in 2014,” he said. “Look for the market to perform well in 2013 with values going up more quickly than 2012.”
Imperial Oil moving Calgary office out of downtown
Quarry Park location move beginning in 2014
BY MARIO TONEGUZZI, CALGARY HERALD
CALGARY — Imperial Oil announced Friday plans to relocate its downtown Calgary offices to a campus-style office complex in southeast Calgary to consolidate and support its growing operations.
The complex will be located on a 20-acre site in Quarry Park and will bring together Imperial staff from several downtown Calgary office locations. It will contain five low-rise office buildings with 800,000 total square feet of office space, support facilities, food service, wellness centre and other employee amenities, said Imperial Oil.
“Imperial has embarked on a decade-long period of substantial growth and expansion. This new campus will provide an opportunity to consolidate our Calgary offices in one location, offer additional space for our growing workforce and provide a superior working environment for our people,” said Paul Masschelin, senior vice-president of finance and administration for Imperial Oil, in a statement. “The complex will be constructed to high standards of energy efficiency and environmental stewardship, and will promote new opportunities for employee collaboration in their daily work.”
Employees will move in two phases, beginning in 2014. Full occupancy is expected in 2016.
The company currently has about 2,300 Calgary employees spread over three downtown buildings in Calgary’s downtown.
Imperial currently leases office space in Fifth Avenue Place, on 2nd Street S.W., which used to be known as Esso Plaza. The company leases space in both towers on the site, as well as space at BP Centre, across the street.
Pius Rolheiser, spokesman for Imperial Oil, said the Quarry Park location will have capacity for up to 3,000 employees.
“The capacity to grow and to accommodate future growth was an important consideration,” he said, adding cost was an important consideration as well but it wasn’t the only one.
“Imperial’s a company that plans to be here for decades to come. We’re just getting ready to start up the Kearl project which will operate for 40 to 50 years ... This new office complex gives us the flexibility and the room, the space, to support our growth in operations for a long time into the future.”
Cody Clayton, president of Remington Development Corporation, said the move by Imperial “signifies a massive change in the way people think of real estate for commercial real estate.”
“Obviously Calgary has been a very downtown-focused real estate market when it comes to oil and gas and to have someone of Imperial Oil’s stature choose Quarry Park to us says a lot,” said Clayton. “It immediately qualifies Quarry Park as a real alternative to companies. In the past, we’ve had other oil and gas companies look out here. We haven’t had success with them.
“But I think by now having Imperial actually make the decision to come out here, there will be others that will look at this and seriously consider it.”
Clayton said in other markets, such as Houston and Dallas, many oil companies have gone to a campus-style setting for their offices.
“People aren’t looking for necessarily being on the 50th floor of an office tower downtown,” he said.
Susan Thompson, business development manager for real estate for Calgary Economic Development, said it’s great news that Imperial is growing enough that it feels the need to develop its own facility.
“At this point, to be honest, it’s a good thing for the downtown considering (the new) Eighth Avenue Place (tower) is fully committed and they don’t start moving in until 2014 and (another project) City Centre doesn’t have tenants really taking occupancy until about the end of 2015, start of 2016,” said Thompson. “And all our forecasts are telling us our vacancy is going to be pretty tight downtown. So if Imperial Oil leaves that actually frees up some space.”
A trend to moving outside a downtown core is often spurred by companies taking advantage of low land prices, shorter development times, lower rents, plenty of parking and the ability to offer more amenities to their employees, added Thompson.
Greg Kwong, executive vice-president and regional managing director of commercial real estate firm CBRE Limited in Calgary, described the move as “huge” and could spark other oil companies to look outside the core for possible office space.
“It would be on scale with when they announced The Bow — the size of the building and the impact on the market,” he said. “It’s the first major oil company to move outside the core. But if you look at it on the grand scheme of things other major markets, oil and gas markets, like Houston and Dallas, there are many oil and gas firms located out in the suburbs.”
Quarry Park consists of 385 acres. It has 1.2 million square feet of office space already built of which there is only 1.5 per cent vacancy. There is potential for another two million square feet of office space that can be built, including the Imperial Oil project.
It also has 100,000 square feet of retail space and Remington is planning a hotel for the site.
On the residential side, about 200 single-family residences have been built and are occupied. There’s another 60 town houses built with about 40 occupied. There’s also a 144-unit rental apartment that is under construction and anticipated to be completed for the summer of next year.
Also, Remington has plans for a five-building condo project of 175 units. The first two buildings are under construction with 68 units.
Clayton said Remington also has land for another 60 town houses and 1,500 multi-family units as well as 50 vacant single-family residential lots.
Midnapore is a community within the SE of the City of Calgary.
Midnapore was once an unincorporated community with its own train station, but as Calgary grew larger, it was annexed into being part of that city in 1961 and established as a neighbourhood in 1977. It is bounded to the north and east by Fish Creek Provincial Park, to the south by Sun Valley Boulevard and to the west by Macleod Trail.
Midanpore is a popular district and those looking for real estate for sale in Midnapore SE Calgary can choose from affordable starter homes to spacious lakeside properties.
In 2011 the neighbourhood had a population of 6,888. Residents in this community had a median household income of $68,492 in 2005, and there were 11% low income residents living in the neighborhood. As of 2006, 15.8% of the residents were immigrants. A proportion of 18.4% of the buildings were condominiums or apartments, and 29.3% of the housing was used for renting. Midnapore community info.
Midnapore Lake was developed by Keith Construction, which also developed several other lake communities in Calgary. The Midnapore Lake Residents Association (MLRA) is a not-for-profit association which owns, maintains and operates the facilities of the lake and park. Each residence is required to contribute to the assets of the MLRA each year to ensure the financial viability of the MLRA. More info.
Midsun The Mid-Sun Community Association strives to enhance the quality of life of the communities
of Midnapore and Sundance in southeast Calgary by providing a voice, as well as direction, to meet the expressed needs of residents.
There were 8 Midnapore Single Family Homes Sold in August of 2012, with an average sale price of $582,675 and a median sale price of $341,500. The average days on market (DOM) for these 8 sales was 19 days.
Closest Schools for the Community of Midnapore
|LRT - Shawnessy Station||1.18 km|
|LRT - Fish Creek Lacombe Station||1.67 km|
|LRT - Somerset/Bridlewood Station||1.96 km|
|LRT - Canyon Meadows Station||2.76 km|
|LRT - Anderson Station||4.73 km|