Quote:
With a central district inventory of just over 42.2 million square feet, Calgary has experienced absorption this year of more than 1.8 million square feet.
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We could build another Bow every single year at this rate. In the middle of a huge economic downturn around the world. And considering it will be 3 years before anything substantial comes online, I suspect we'll be back at 1-2% vacancy before anything new opens up. Hell, at current rates we could dip to zero in just over 3 years. We'd have to have 3 Bows built by then just to get back to "healthy" rates of 5-7%.
Insane. Absolutely insane. What happens if the economy actually gets GOOD again??
To answer some of Caltrane's questions about tenants freeing up space - that's not how it's working here. Companies are essentially reserving space even if they don't need it right this instant, so anything that is vacated is already accounted for. The Bow fills up, and all of EnCana/Cenovus's vacated space is already spoken for. Anyone taking that... THEIR vacancy is already spoken for. There simply isn't anything available anymore. Companies are planning for the upcoming crunch and it's rapidly disappearing. Many large companies now have their own "internal" vacancies, yes - but that's not available on the market.