This disclaimer shall apply to CBRE Limited, Brokerage, and to all other divisions of the Corporation (“CBRE”), as well as Corporate Realty Advisors Inc. (“CRA”). The information set out herein (the “Information”) has not been verified by CBRE and CRA, and neither CBRE nor CRA represents, warrants or guarantees the accuracy, correctness and completeness of the Information. CBRE and CRA do not accept or assume any responsibility or liability, direct or consequential, for the Information or the recipient’s reliance upon the Information. The recipient of the Information should take such steps as the recipient may deem necessary to verify the Information prior to placing any reliance upon the Information. The Information may change and any property described in the Information may be withdrawn from the market at any time without notice or obligation to the recipient from either CBRE or CRA.

Office space availability in blocks of 10,000 ft2 and greater in downtown Calgary increased dramatically during the first two months of 2015 to 3,737,408 ft2. The increase was 337,000 ft2 in January 2015 and 371,000 ft2 in February - cumulatively over 700,000 ft2. Not surprisingly, most of the increase was in sublease space. In fact, in January, 98% of the 337,000 ft2 in increased vacancy was sublease space.

The run-up in vacancy has already impacted sublease rental rates to some degree, particularly for premises with shorter residual terms, but it really hasn’t created the kind of downward pressure on rates that might be expected. That may be in part because vacancy is only now breaking out of a “trading range” it’s been in since June of 2014. (See graph below.) Large block vacancy at the end of February is still only 30,000 ft2 higher than it was last June. Additionally, landlords are pulling out the all stops to maintain the current rental rates by offering greater inducements such as rent free periods and higher tenant allowances to compete more effectively for whatever demand is out there.

Nonetheless, downward pressure on rental rates is building. Another month of increased vacancy such as was seen in January and February is likely to create the break in rental rates that many have been expecting.

March 04, 2015

O N E M I N U T E M A R K E T U P D A T E

Large BLock Vacancy Jumps b y > 7 0 0 , 0 0 0 f T 2 S I N c E b E g I N N I N g O f 2 0 1 5

March 04, 2015

O N E M I N U T E M A R K E T U P D A T E

c A L g A R y D O W N T O W N c O R E O f f I c E S P A c E S U P P L y & D E M A N D> 1 0 , 0 0 0 f T 2 B L O C K S O f S P A C E ( T O f E B R U A R y 2 8 , 2 0 1 5 )

This disclaimer shall apply to CBRE Limited, Brokerage, and to all other divisions of the Corporation (“CBRE”), as well as Corporate Realty Advisors Inc. (“CRA”). The information set out herein (the “Information”) has not been verified by CBRE and CRA, and neither CBRE nor CRA represents, warrants or guarantees the accuracy, correctness and completeness of the Information. CBRE and CRA do not accept or assume any responsibility or liability, direct or consequential, for the Information or the recipient’s reliance upon the Information. The recipient of the Information should take such steps as the recipient may deem necessary to verify the Information prior to placing any reliance upon the Information. The Information may change and any property described in the Information may be withdrawn from the market at any time without notice or obligation to the recipient from either CBRE or CRA.

0  

1,000,000  

2,000,000  

3,000,000  

4,000,000  

5,000,000  

6,000,000  

Jul-­‐0

7  

Aug-­‐07  

Sep-­‐07  

Oct-­‐07  

Nov-­‐07  

Dec-­‐07  

Jan-­‐08

 

Feb-­‐08

 

Mar-­‐08  

Apr-­‐08  

May-­‐08  

Jun-­‐08

 

Jul-­‐0

8  

Aug-­‐08  

Sep-­‐08  

Oct-­‐08  

Nov-­‐08  

Dec-­‐08  

Jan-­‐09

 

Feb-­‐09

 Mar-­‐09  

Apr-­‐09  

May-­‐09  

Jun-­‐09

 

Jul-­‐0

9  

Aug-­‐09  

Sep-­‐09  

Oct-­‐09  

Nov-­‐09  

Dec-­‐09  

Jan-­‐10

 

Feb-­‐10

 Mar-­‐10  

Apr-­‐10  

May-­‐10  

Jun-­‐10

 

Jul-­‐1

0  

Aug-­‐10  

Sep-­‐10  

Oct-­‐10  

Nov-­‐10  

Dec-­‐10  

Jan-­‐11

 

Feb-­‐11

 Mar-­‐11  

Apr-­‐11  

May-­‐11  

Jun-­‐11

 

Jul-­‐1

1  

Aug-­‐11  

Sep-­‐11  

Oct-­‐11  

Nov-­‐11  

Dec-­‐11  

Jan-­‐12

 

Feb-­‐12

 

Mar-­‐12  

Apr-­‐12  

May-­‐12  

Jun-­‐12

 

Jul-­‐1

2  

Aug-­‐12  

Sep-­‐12  

Oct-­‐12  

Nov-­‐12  

Dec-­‐12  

Jan-­‐13

 

Feb-­‐13

 Mar-­‐13  

Apr-­‐13  

May-­‐13  

Jun-­‐13

 

Jul-­‐1

3  

Aug-­‐13  

Sep-­‐13  

Oct-­‐13  

Nov-­‐13  

Dec-­‐13  

Jan-­‐14

 

Feb-­‐14

 Mar-­‐14  

Apr-­‐14  

May-­‐14  

Jun-­‐14

 

Jul-­‐1

4  

Aug-­‐14  

Sep-­‐14  

Oct-­‐14  

Nov-­‐14  

Dec-­‐14  

Jan-­‐15

 

Feb-­‐15

 

Sq.  Ft.  

Supply     Demand