Oil Fuels Calgary's Office Space

"The energy sector, and the related services to it, are the prime drivers of office space demand in the downtown core without question,"

"We're also seeing growth in the financial services sector as well. And we're seeing a lot of interest as the capital budgets continue to increase for not only conventional, but also oilsands related development, and the staggering budgets for those projects. The financial services sector is also increasingly looking, from frankly around the world, (to locate) branches here and increasing the size of the offices they have here." Richard Pootmans, business development manager of real estate for Calgary Economic Development.

So the market isn't totally in the dumps (I don't believe it is and this is further proof to the point) if you are buying in the right sector. I am sure as Calgary's office space starts to feel the pinch Edmonton's market will pick up.

Read Article Here

Seven Months and $18 Billion

Calgary's high end sales lead to a blockbuster year with the capital city selling 326 properties at a value of over $18Billion by July in 2007.

"Residential real estate sales in Alberta so far this year have ballooned to nearly $18 billion in total dollar volume, a jump of almost 36 per cent compared to a year ago, according to the latest data by the Canadian Real Estate Association"Read More

The Alberta market is incredibly active and constantly breaking records. The sale of high end properties of over $1 million reached 326 by the end of July. The prices of houses in the Calgary area rose from $398,870 in December 2006 to $505,920 buy July'07.

As it is often said Edmonton's market closely follows Calgary's and it isn't hard to believe that we will be seeing prices like this in Edmonton next year.

Parking Rates Indicator Of Strong Economy

Hot demand and dwindling supply have parking rates increasing in Canada. Experts say that higher rates are an indicator of a healthy economy. If more people are out shopping and working the need for parking increases.


"This suggests that the slowdown in consumer spending coupled with modest job gains had a cooling effect on parking rates. However, as the economy is anticipated to improve, and only a small amount of new parking supply is slated to come on-line, an increase in demand is expected to push rates even higher over the next year," Colliers International

What city is leading Canada? Calgary with a rich $350 median monthly rate. As usual Edmonton is right behind with a $60 leap over the last year.

"Indicators of this upward trend include smaller markets, such as Victoria and Edmonton, where monthly rates have jumped $60 over those in 2006,"

So instead of getting angry that your parking rates are increasing be grateful for a strong economy which will positively affect housing prices.


Investors must be aware that parking rates are a huge factor when choosing a place to live.

"Parking costs continue to have a significant effect on a tenant's decision-making process," commented John Arnoldi, managing director of office leasing at Colliers International. "Monthly parking costs and availability contribute to the overall desirability of any given location, and in many instances can be the tipping point for a tenant — helping them select one building over another."


Edmonton's "Landlords market" means that people are willing to pay to get a place to live and park- just don't take advantage of them. In a "Renter's market" you would have to sweeten the deal and discount the parking rates or give one month free when tenants sign a 1 year lease.

Read The Article

Follow The Leader

As I have said before, "Where Calgary goes Edmonton follows". Calgary is hitting new housing highs and Edmonton will follow the leader. CMHC released a forecast in May projecting that single detached homes in Calgary and area will hit $474,000 by the end of this year.

"Only Edmonton is forecast for a bigger percentage hike, with prices expected to jump $90,000 to $340,000 by the end of this year, up 35.5 per cent.

"We (in Alberta) have the strongest economy in the country," Vinay Bhardwaj, manager of market analysis for the prairies region of CMHC, said.

"We have virtually full employment ... just about everybody in our province who can work and who has a skillset has a job," he said, noting that makes people more likely to consider home ownership. "On top of that, you have people who are moving here."

Although Alberta has been known for its boom or bust cycles, there is little expectation of a major correction that would see housing prices collapse."Click Here For More

Good time to get into the market? Strong Yes!