{"id":10197,"date":"2015-07-19T06:59:59","date_gmt":"2015-07-19T11:59:59","guid":{"rendered":"http:\/\/olduvai.ca\/?p=10197"},"modified":"2015-07-19T06:59:59","modified_gmt":"2015-07-19T11:59:59","slug":"calgary-office-market-gets-crushed-oil-china-blamed","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=10197","title":{"rendered":"Calgary Office Market Gets Crushed. Oil, China Blamed"},"content":{"rendered":"

Calgary Office Market Gets Crushed. Oil, China Blamed<\/a><\/h3>\n

The office vacancy rate in downtown Calgary, the epicenter of the Canadian oil bust, could hit the vertigo-inducing level of 17.5% by the end of 2018, a new report by commercial real-estate firm Colliers International warned \u2013 and added some ominous clouds: \u201cGiven the current global macro environment, this may even be an optimistic forecast.\u201d<\/p>\n

While real estate is supposedly local, it\u2019s not. It has been, like so many things, globalized. Colliers:<\/p>\n

The geopolitical turmoil in China, Greece, and Iran must be taken into consideration, as the global instability is already affecting local top-level decisions and investor sentiment.<\/p><\/blockquote>\n

The biggest problems are cropping up in the sublease sector, according to the\u00a0Calgary Herald<\/u><\/a>, citing Colliers\u2019 report. Sublease availability began to balloon in late 2014. The oil bust was hitting hard. Canada\u2019s tar-sands operations are particularly at risk since they\u2019re the world\u2019s high-cost producers; they\u2019re sitting ducks in an oversupplied market where an all-out fight over market share has broken out.<\/p>\n

So, according to the report, \u201cinternational energy companies began reallocating capital to other parts of the world.\u201d Local operators, to stay alive a little longer, tried to slash operating expenses and conserve cash where they could. Layoffs and consolidations followed. A lot of people in the oil business are contractors; and their hours were getting cut. And companies began shedding by then useless office space.<\/p>\n

But there have been few takers.<\/p>\n

By the end of June, available sublease office space in downtown Calgary, after soaring for three quarters in a row, hit an all-time record of 2.6 million square feet. At 52% of all available office lease space, sublease space exceeded headlease space for the first time since Q4 2009, during the Financial Crisis. That\u2019s a bad sign.<\/p>\n

 <\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Calgary Office Market Gets Crushed. Oil, China Blamed The office vacancy rate in downtown Calgary, the epicenter of the Canadian oil bust, could hit the vertigo-inducing level of 17.5% by the end of 2018, a new report by commercial real-estate firm Colliers International warned \u2013 and added some ominous clouds: \u201cGiven the current global macro […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[2693,103,130,6941,312,7381,588,3521,1775,668,4254,4255],"class_list":["post-10197","post","type-post","status-publish","format-standard","hentry","category-economics","tag-calgary","tag-canada","tag-china","tag-chinese-stock-market","tag-financial-crisis","tag-office-vacancy-rate","tag-oil","tag-oil-bust","tag-oil-price-collapse","tag-real-estate","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10197"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10197\/revisions"}],"predecessor-version":[{"id":10198,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10197\/revisions\/10198"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}