Across Canada, 3.4 million ft.² absorption was recorded for the year-to-date. In Calgary, this figure was an incredible 2,000,000 ft.². Calgary saw two active quarters this year as the gas and oil industry continued to drive the demand for better quality commercial space.
During this year's second quarter, 233,512 ft.² was absorbed in Class A space alone. The vacancy rates for Class AA and A properties remained just below the 2% mark, which is leading the path towards a new cycle of development. The project for the Cadillac Fairview City Center has already pre-leased 130,000 ft.² and is expected to open in mid-2015. The tower at Eighth Avenue Place West has been completely pre-leased with an expected opening in 2014.
Activity is continuing in the gas and oil market with the larger companies still looking at major expansion. Although it has been rare to see in the past, many of these companies are considering the possibility of expanding past the downtown core due to the low vacancy rates in the city. This may help drive down the 10.7% commercial vacancy rate in the suburbs, which is the fourth lowest rate nationally with Ottawa sitting at the top with an 8% vacancy rate.
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