Altus Group, a leading provider of commercial real estate services, software and data solutions, today announced the commercial real estate investment results for the second quarter of 2017 for the Calgary market area. Overall investment volumes were down by 47% from Q1, and the number of transactions by 19%.
Source: Altus Group
Overall dollar volume was relatively more balanced across the major asset classes, a departure from the typical quarter where one or two assets are the primary contributors to overall investment volumes. The greatest contributor was the Industrial sector with 23.7% of the dollar volume, and the smallest contributor was Retail with 10.5% of the total.
The Apartment sector saw an increase in both deal count and transaction value in Q2 with 15 transactions totalling $92 million recorded, more than three times the dollar volume in Q1 and an increase of 168% from the same quarter last year. There were 13 Residential Land transactions worth $97 million, down slightly from the previous quarter, but up 135% from the same quarter last year.
Source: Altus Group
Investment was down in all other asset classes both in relation to last quarter and Q2 2016:
- The Office sector had seven transactions worth $74 million, down 84% from Q1 and down 83% from the same quarter last year.
- The Retail sector saw 13 transactions worth $56 million, down 16% from Q1 and 35% from Q2 2016.
- The Industrial sector, at $126 million, was down 39% from Q1 and 37% from Q2 2016.
- The ICI Land sector was down 15% and 13%, respectively from Q1 2017 and Q2 2016.
“After a strong start to 2017 in Q1, market activity fell back again in Q2, suggesting a recovery that is still in its infancy. However, the more even distribution of investment across asset classes seen in Q2 is a positive note and will help set the stage for a more sustained improvement as the Calgary market area continues through its current cycle,” noted Paul Richter, Director, Data Solutions, Altus Group.