Base10 report Bearish on Downtown Office Space
CALGARY, June 29, 2011 /CNW/ - Base10 Capital Advisors released today The ABCs of Commercial Real Estate - a Bearish Outlook for Downtown
Calgary, a wake-up call to owners, investors, developers and tenants that the
economic realities are very different from the picture that has been
painted of the downtown Calgary office market.
Using Statistics Canada data and real estate intelligence from Canada's
leading provider of national office market data, Base10 analyzes the
trends in vacancy rates and absorption in all classes of the Downtown
office market, comparing them with current labour market information
and oil and gas sector indicators. They conclude that the oft-reported
trends and overly optimistic forecasts simply do not add up.
The report provides an independent, objective look at Calgary's downtown
office market based on factual and transparent data sources. It looks
beyond the market data and discusses what the trends mean and how they
are impacting the performance of many assets.
"Sound investment decisions depend on the availability of sound
information. There is a lot of incomplete information out there in the
office market," says Bryan Slauko, Managing Director at Base10 Capital
Advisors. "Whether you're an owner, investor, developer or a tenant in
a commercial real estate space, you expect and depend on the
availability of reliable, insightful data to make informed decisions.
This report arms people with the facts they need."
Key findings include:
Average Downtown Calgary office vacancy rates are greatly understated.
2010 and 2011 office absorption figures are significantly overstated.
West Core Class B and C spaces face considerable challenges with high
average vacancy rates of 17.4% and 16.8% respectively.
Average Downtown Calgary vacancy rate is forecast to increase
significantly to 16% by December 2011.
The future of the Downtown office market in Calgary is not as
encouraging as some would have us believe. Owners and investors of
Class B and C office assets, in particular, are facing many
difficulties due to declining cash flows and significant declines in
valuation. This situation requires swift, strategic action to avoid
significant crisis and the erosion of many millions of dollars of
Solving these problems requires the sophisticated expertise of
professional, experienced service providers and advisors who recognize
their role in maximizing the value of an investment in commercial real
estate and who have the specialized expertise required in today's
market to deal with these issues.
Base10 Capital Advisors is an independent real estate advisory and asset
management firm that provides sophisticated, institutional quality
expertise to mid-market commercial real estate investors. Base10 builds
long-term relationships with its clients by providing independent,
professional advice, enabling them to minimize risk and maximize value.
SOURCE Base 10 Capital Advisors
For further information:
For more information or to schedule interviews, please contact:
Lisa Rushka, BComm, APR
Full report available at www.base10capital.com/2011calgarytrendreport
YouTube Video showing vacancies in Downtown Calgary