Frank O’Brien, (WESTERN INVESTOR) — Even without $1.2-billion Bow office tower transactions, which sold last fall and closed in the first quarter of this year, commercial real estate sales in Calgary this year topped $1.3 billion to stay ahead of historical levels.
Also not counted is the August sale of the 23-floor, 436,304-square foot Millennium office tower downtown, where the price has not been announced.
Signs of increased investor spending in Calgary were apparent during the second quarter (Q2) of 2022. Just under $889 million in transactions closed through Q2, bringing year-to-date investment to more than $2.5 billion – a 256 per cent year-over-year jump.
Except for land, all asset classes saw year-over-year increases in dollar volume as of mid-year, June 30.
“A significant portion of first-half dollar volume stems from the $1.2 billion sale of The Bow office building which closed earlier in the year. Even without The Bow however, investment totalled $1.3 billion and remains above historical norms”, according to the Network, which tracks commercial real estate sales across Alberta.
At the mid-point of 2022, ongoing demand for industrial properties generated just under $402 million in total investment. Land sales totalled more than $224 million while multi-family and retail property transactions generated $214 million and $210 million in sales, respectively.
As in previous quarters, commercial condos (strata) remained popular, with 155 sales totalling $138.8 million.
Despite nearly $114 million in land transactions closing during the second quarter of 2022, total investment in this asset class declined on a year-over-year basis to $201 million from $243.5 in the second quarter of 2021. Overall sales however, increased to 51 from 41 at mid-year 2021.
The stand-out land transaction of 2022 to date is the $38.2 million ($557,000-per-acre) purchase of The stand-out land transaction of 2022 to date is the $38.2 million ($557,000-per-acre) purchase of 69 acres at 6502 – 106 Avenue SE by Vancouver-based Beedie, through Beecal Developments Ltd.
Only this and one other land sale (802/838 11th Avenue SW to GM Glenbow from First Capital Holdings (ALB) Corporation) have closed above $10 million to date, the Network reported.
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