Calgary’s 7.4% decline worst in the country
(Source: Calgary Herald)
Calgary had the steepest decline in annual investment returns for commercial real estate properties in Canada last year at 7.4 per cent — down sharply from a 7.2 per cent hike in 2008.
The 2009 results for the ICREIM-IPD Canada Annual Property Index covered $90.9 billion of directly held commercial real estate.
An indication of the local commercial real estate market’s dramatic decline in recent years is seen in results from previous years, which were in positive territory — 26.5 per cent in 2005; 29.9 per cent in 2006; 20.2 per cent in 2008.
Calgary’s loss has been primarily felt in the office sector, with a 11.2 per cent decline followed by losses in the industrial (6.5 per cent), residential/ rental (1.2 per cent) and retail (0.1 per cent) sectors.
Read Mario Toneguzzi’s fulle article “Empty offices fuel Calgary’s real estate investment losses” in the Calgary Herald (February 22, 2010).