• 4 minutes Why Trump will win the wall fight
  • 9 minutes Climate Change: A Summer of Storms and Smog Is Coming
  • 12 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 16 minutes Washington Eyes Crackdown On OPEC
  • 24 hours is climate change a hoax? $2 Trillion/year worth of programs intended to be handed out by politicians and bureaucrats?
  • 13 hours Ayn Rand Was Right
  • 10 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 6 hours Oil imports by countries
  • 12 hours Solar and Wind Will Not "Save" the Climate
  • 11 hours Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 4 hours North Korea's Kim To Travel To Vietnam By Train, Summit At Government Guesthouse
  • 14 hours Sanctions or Support: Despite Sanctions, Iran's Oil Exports Rise In Early 2019
  • 3 hours America’s Shale Boom Keeps Rolling Even as Wildcatters Save Cash
  • 5 hours AI Will Eliminate Call Center Jobs
  • 10 hours NZ Oil, Gas Ban Could Cost $30 Bln

Breaking News:

TransCanada Restarts Keystone

U.S. Nuclear Has A Tough Road Ahead

U.S. Nuclear Has A Tough Road Ahead

High-profile disasters and a booming…

Despite Higher Oil Prices, Calgary Office Vacancy Is Highest In A Decade

Calgary

Despite the fact that oil prices have increased to their highest in three and a half years, empty offices in Calgary—the heart of Canada’s oil industry—are at their highest since at least 2008.

Calgary’s office vacancy rate increased to 23 percent in the first quarter of 2018, from 20 percent for Q1 2017, a report by real estate consultancy Altus Group says, as carried by Bloomberg.

The annual rise in office vacancies was partly due to the completion of 2.5 million sq ft of new office space in the city, according to Altus.

Downtown Calgary has been seeing record high office vacancy rates this year. According to CBRE Alberta, the regional unit of commercial real estate services and investment firm CBRE, downtown office vacancy rates in Calgary will stay flat at 27.9 percent in 2018, after two years of surging office vacancy rates.

The energy sector recession has had a lot to do with the rise in vacancy rates in downtown Calgary since 2014, according to interactive maps by Altus Group and CBC News. At the end of 2014, the office vacancy rate in downtown Calgary was 9.8 percent. It surged to around 20 percent by mid-2016, and hit 27.7 percent by March 2018.

Canada’s oil industry, mostly concentrated in Alberta, has suffered from the low oil prices. Even as international oil benchmark prices increased this year, worsening transportation bottlenecks led to a wider discount of Canadian crude oil prices, stifling the production and earnings of some of the big oil sands producers in the first quarter.

Related: This Russian Oil Major Is Ready To Open The Taps

The recession in Alberta is now officially over, the Conference Board of Canada said last month, expecting the provincial economy “to fully recover the ground it lost during 2014-2016 recession.”

“It is a difficult road for the energy sector as major companies are holding back on investment until there is more certainty about pipeline capacity; this is hurting Alberta’s outlook. But oil prices have been rising, presenting upside risks to the outlook,” the Conference Board of Canada said in its provincial outlook for the spring of 2018.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News