The Occupier, Year-End 2021 Calgary Suburban Office Market

The effects of Covid-19, layered on top of historic high vacancy office market conditions, and coupled with demand and price destruction in the Energy Sector, had created a rather dim prognosis for recovery in Calgary Suburban office markets entering 2021. Cresa had forecast that “at best, by year end, office Markets may reflect a bottoming out of basic rental rates and vacancy rates, potentially setting the stage to move gingerly from a recessionary market phase to the early stages of a very mild recovery phase by mid- 2022 and into 2023”. That prediction was somewhat accurate as 2021 began with two quarters of substantial negative absorption, followed by mildly increasing leasing activity, with Q4 yielding the first positive quarter for absorption in two years.