Healthier market fundamentals fuel continued positivity at the close of 2022
In a continuation of the trend from last quarter, Calgary exhibited a steady increase in gross asking rental rates across the office sector. Overall asking rents tracked up 2.6% over the year, to $31.27 per square foot (psf). Asking rent increases were observed to be even greater in the Class A and above buildings across downtown. This phenomenon was indicative of a continued flight to quality as employers showed a preference for newer, highly amenitizedoffice space in order to attract more talent into their businesses and offices. While Class B and C buildings continued to struggle with high vacancy and low demand, the market’s overall availability rate trended lower, decreasing 190 basis points (bps) over the past 12 months.