Q2 2018 Point of View

Unless the function of an office as we know it is eliminated entirely, any commercial office market will never reach full vacancy. Despite advances in technology, artificial intelligence, and work structure, the presence of the office appears to be a very secure one. On the other hand, what is to stop a market from cratering to 30% vacancy? Or worse? Five years ago in Calgary, when office occupancy neared 97.5%, you would have been hard pressed to find anyone who foresaw a vacancy rate near 25% in the downtown core, but alas, here we are at the end of the second quarter of 2018 with a vacancy rate of 24.95%, having edged up 0.5% higher from the previous quarter.