CALGARY DEVELOPMENT - Media Article Repository

[atlas_inc]

OUTLOOK: Alberta expected to be growth leader

Closer to home, expectations for Alberta’s growth include:

4.7 per cent — CIBC World Markets

3.6 per cent — Bank of Nova Scotia

3.5 per cent — Government of Alberta

3.4 per cent — BMO Nesbitt Burns

2.8 per cent — TD Bank Financial Group

Weakness in natural gas and moderation in housing are generally expected to further cool Alberta from a standout year in 2006 and about 4.5 per cent growth in 2007, but aside from TD, most analysts believe it will once again be Canada’s fastestgrowing province.

“Less activity is not a big surprise there, coming off the boil that we have seen,” says TD Bank Financial Group chief portfolio strategist Bob Gorman. “Cooling somewhat is probably healthy for all concerned.”

Porter and other analysts note that turmoil in the U.S. housing sector flowing from August 2007’s credit crunch has been limited in its impact on the Canadian economy. Canada has also been helped by strong and generally rising commodity prices, very strong government fiscal numbers, rising incomes and strong domestic demand.

However, not all of those factors may survive into 2008.

“Cautious lenders and cautious borrowers are pointing to slower growth for the U.S. for some time. We think the U.S. economy gets into very slow growth mode in the first half of the year and only very, very gradually gets out of that,” says Jestin.

TD’s Gorman believes the U.S. will escape a technical recession (two consecutive quarters of the economy shrinking).

However, “as their economy does slow, so too will the demand for our exports,” says Gorman. “Our strong dollar — even though it’s off its highs — really exacerbates that problem.”

Weak U.S. growth and its impact on Canada will limit stock exchange index gains to single digits both north and south of the border, Gorman adds. “We will have a decent year — but not a blockbuster — ahead of us.”

The jury is definitely out on the outlook for the U.S. currency, and with the greenback go many other indicators, including the Canadian dollar and the price of gold.

“There’s a real split among the forecasting community,” notes Porter.

“We are on the side that believes the currency is due for a little bit of a correction over the course of next year,” Porter adds, suggesting the loonie will end 2008 around 95 or 96 cents US.

Some analysts see further short-term weakness in the U.S. currency, which would take the Canadian dollar higher, before the greenback bottoms out and starts to rebuild in mid-2008.

“The path of least resistance for the Canadian dollar is down,” says TD’s Gorman. “Commodity prices in general are not going to move higher in this cycle, our trade balance versus the States is deteriorating,” he adds, projecting a mid-90-cents value for the loonie by year-end 2008 and an even lower average in 2009.

Scotia’s Jestin is more upbeat. “The strength in Canada is domestic demand, the Achilles heel is exports; in the U.S., the strength is in exports and the Achilles heel is in domestic demand. It’s a mirror,” he says.

The Bank of Nova Scotia is forecasting a Canadian dollar average of $1.02 to $1.04 US, trading through 2008 between 95 cents and $1.08 US. It also foresees the Bank of Canada lowering interest rates one more time, possibly on Jan. 16, while U.S. authorities go further and lower longer. West Texas Intermediate crude oil is expected to average $86 US.

“We’re expecting the loonie to remain very strong. We see strong fundamentals . . . but the most important thing is we expect the U.S. dollar to be weak.”

Atkins believes the loonie may rally in the short term on interest rate differentials between Canada and the U.S. However, he feels the market is pricing the currency on the high side.

“I still maintain the equilibrium value is par or slightly below — perhaps 95 cents US or 98 cents US — but you could see it coming back again if we get into a situation where we don’t want to lower (rates) and the Fed does, it’s going to push it again,” says Atkins.

[atlas_inc]

Planners envision vibrant makeover
New condos, offices will propel changes

Mario Toneguzzi
Calgary Herald

Thursday, January 03, 2008

Commercial real estate executive Christopher Ridabock has lived in some of the world's most populous and vibrant cities -- Toronto, New York, London, Boston, Chicago, San Francisco, Los Angeles.

The president of DTZ Barnicke Canada has travelled the world visiting major centres for business and pleasure.

But for the past four years, Ridabock has called Calgary home.

"For where we are today, I think we're in pretty good shape," he says of the amenities that the burgeoning city offers those who work and play in the inner city.

When he looks ahead to what is to come, he beams: "I'm very, very excited."

And so he should be -- as well as the thousands of people who will experience the dramatic metro makeover this city is undertaking in the next few years.

The numbers are simply staggering as skyscrapers for both office towers and residential condo complexes reach for the sky in the downtown and Beltline.

In 2005, Centre City was home to about 30,000 people. That will balloon to 70,000 people by 2035, which will include the development of an additional 13,000 to 26,000 dwellings.

Currently, about 120,000 people work in Centre City. Projections indicate that number could soar to 180,000 people by 2025.

These new workers and residents will bring with them a changed downtown out of demand and necessity. The possibilities for amenities are almost limitless: neighbourhood parks, urban parkettes, historic parks, regional recreation parks, natural environment parks, indoor winter gardens, community vegetable/flower gardens, urban plazas, corner plazas, residential plazas, landscaped/green roofs, sky gardens.

There will likely be more retail and restaurants. More public gathering places, arts and culture. More entertainment, public art and recreation.

"I think the neighbourhoods will just keep maturing," says Ridabock, who lives in Bridgeland but has lived in Calgary's downtown and has purchased one of the new Waterfront condos by Eau Claire Market, with possession slated for mid-2010.

Ridabock believes downtown Calgary has made great progress with its lineup of restaurants and cultural offerings, such as Jack Singer centre, the jazz festival and the folk festival.

"It's all good stuff," he says. "We're going to need more of that cultural interface as time goes along and more and more people are living downtown."

But he also believes there's room for improvement.

"Certainly, at the moment, we're probably under-cinema'd and not much choice there," Ridabock contends.

"Downtown needs more life -- it needs more animation."

Maggie Schofield, executive director of the Calgary Downtown Association, also believes the changing face of downtown will see more arts and culture, additional restaurants, retail, coffee houses and clubs. And perhaps more services for less-fortunate people as well as government services.

"We want to make sure that everybody has what they need," she says.

"One of the big things that's really missing from downtown is groceries," says Schofield. "If you're living downtown, you have to drive somewhere to get your groceries and wouldn't it be great if you could pick up stuff as you walked home as you can in many large communities around North America and certainly in Europe."

Calgary's downtown of the future can also expect more tourist activity with additional hotel space.

"It will be more of a destination place," says Schofield. "We're not just the gateway to the Rockies and we want to keep building on that."

So how does Schofield envision the look and feel of tomorrow's downtown in the Heart of the New West? "I think it's going to be more energetic. And you'll see people living, working and playing all in the downtown core and then visitors coming in and people from outside of the downtown as well. We're looking at it as a real meeting place for everybody and a great social place, family place. A safe and fun place to be."

Thom Mahler, co-ordinator of Centre City planning and design policy for the City of Calgary, says there is a need for more retail in the Centre City. A strategy is being developed that will assess the types of retail in demand.

"The one form that we focused on through our planning was on food stores," Mahler says. "We did base a lot of our population targets for each of the neighbourhoods in the Centre City to get them up to enough population that each of them would be able to support a food store or at least share them."

Sunterra Market, for example, will be the anchor retail tenant for a major mixed-use development in the Beltline by Keynote. Featuring an expanded mix of groceries, the market will consist of 32,000 square feet on two storeys and will include a fully licensed restaurant, a wine shop and a coffee shop. It will also give customers access to a second-storey rooftop green space.

Mahler says it is critical to get the amenities right. He believes the success of Centre City hinges on planners and developers finding that mix of neighbourhood retail to service residents, as well as the regional retail component to provide that sense of 24/7 activity and vibrancy.

Richard White, a member of the Calgary Planning Commission and former executive director of the Calgary Downtown Association, says space for parks is one of the deficiencies identified in the Beltline. "It's really separated from any major park. As an amenity, that would probably be the biggest deficiency."

He lists others: The Beltline lacks a cinema, a major bookstore, a major retail centre.

But he says the downtown is in for exciting changes. The TD Square and the Calgary Eaton Centre will be renovated and re-branded to cater to higher-end boutiques, such as the expanded Holt Renfrew store. Three historic buildings are undergoing a multimillion-dollar restoration and renovation to eventually house Fashion Central, which will have 24 retail spaces, including some street-front stores targeted to international retailers new to the local market. First Street S.W. will become a "hip strip" of shops. The Calgary Tower Centre is in for redevelopment, too. And Eau Claire is up for a new look down the road.

A casino, shops and saloons are slated for the Stampede's main street -- Olympic Way. Public space is expected to be further developed, including Haultain Park, Memorial Park, Devonian Gardens, Eau Claire Plaza, Olympic Plaza and Century Gardens. Meanwhile, Riverwalk will finally become a reality. White says Stephen Avenue Walk will also continue to evolve with new restaurants and retailers.

Bruce Irvine, vice-president for business development and retention for Calgary Economic Development, says Calgarians are probably witnessing "the single most important times in Calgary's development. And as the city comes onto the world stage, the city becomes more and more known by its core. . . . What are we going to do with this core?"

Irvine believes two things still have to happen: "You have to increase the population -- the residential population that lives in the core. And the second part of that is . . . the variety of people who would live there."

He cautions the city shouldn't rush to develop downtown like Vancouver did. Calgary needs to ensure its core is welcoming to families, he says.

Popular 17th Avenue S.W. offers a glimpse of what the future could hold. Street-front retail. Restaurants. A variety of stores and services. Buskers. A place that is alive day and night.

"Imagine blocks and blocks and blocks of that excitement," adds Irvine.

There's also the connecting links from the Beltline and the downtown core. And these new connections -- these new streets -- can become an amenity where the street itself is a great place of public interaction.

Currently, 11th Avenue offers another example for the future, with restaurants and shopping along the street and residential towers above.

"Lots of people. Lots of eyes. Lots of activity. The thing that makes a place the most exciting . . . is different people doing different things," says Irvine. "Certainly on some streets downtown that's within a five-year horizon. More importantly, it's about the pattern we're setting for the 15- to 20-year horizon."

[atlas_inc]

Nine million square feet of office space in the works

Mario Toneguzzi
Calgary Herald

Thursday, January 03, 2008

Nearly nine million square feet of office space is under construction throughout Calgary and another seven million is in the pre-leasing phase preparing to begin construction in the next 12 to 18 months, says a new report by Avison Young Commercial Real Estate.

The report also says there is another 11 million square feet of office space proposed for construction should future demand dictate a need or sufficient pre-leasing be completed.

The Avison Young report said there is currently 6.6 million square feet of new office development in downtown Calgary, 1.9 million square feet in the pre-leasing stage, and 6.9 million square feet proposed. The current downtown office market has an inventory of about 34 million square feet.

The Beltline area, with an office inventory of 4.9 million square feet, has another 0.4 million under construction, 1.6 million in pre-leasing and 0.8 million proposed. The Suburban North area, with an inventory of 5.8 million square feet, has another 0.7 million under construction, 1.1 million in pre-leasing and 0.8 million proposed. And the Suburban South area, with an inventory of 6.1 million square feet, has another 1.1 million under construction, 2.7 million in pre-leasing and 2.4 million proposed.

According to Avison Young, at the end of 2007 the office vacancy rates in the city were as follows: 1.47 per cent, Downtown; 1.47 per cent, Beltline; 4.45 per cent, Suburban North; and 1.59 per cent Suburban South. Calgary's overall office vacancy rate was 1.83 per cent.

mtoneguzzi@theherald.canwest.com

[atlas_inc]

Downtown dwellers wait for community spirit to move in

Deborah Tetley
Calgary Herald


Saturday, January 05, 2008

Amish Patel is surrounded by construction, cranes and dozens of nameless neighbours.

Like Patel, residents in his five-storey Erlton condominium leave for their jobs in the city's core before the sun comes up and arrive home hours after dinnertime.

The 26-year-old investment banker longs to return to a life of backyard barbecues on lush green lawns, block parties and the chance to shovel his neighbour's sidewalk after a snowfall in the suburbs.

"There is a shared emotional connection in the 'burbs that I don't think exists in Calgary's downtown," says Patel, who moved from the far southwest to Erlton in March to be closer to his job in an office tower.

"But downtown condos don't allow for a sense of community. To find that connection, you have to be a homeowner with a backyard. You have to mow your own lawn, you have to shovel yours and your neighbour's driveway and only then are you really a member of a community.

"If you live in a condo, who are we kidding, we pay three or four hundred bucks a month for someone else to tend to our garden and then all of the sudden your house is just another room in the sky."

Although a critical component to building a vibrant downtown, creating a sense of community in a concrete jungle -- punctuated by cranes, pilings and the constant hum of heavy equipment -- is not easy.

Given the pace of construction, fuelled by the city's steady population growth, the challenge for city planners and developers to create and design "neighbourly neighbourhoods" in such an impersonal setting is amplified.

Just two years ago roughly 30,000 people lived in the downtown core. By 2035, city planners predict that the core and surrounding areas will balloon to as many as 70,000 residents -- more than doubling the number of downtown dwellers.

The city centre area includes the entire downtown core and surrounding neighbourhoods including: Eau Claire, Chinatown, East Village, Connaught, Victoria Crossing and Stampede Park.

The majority of residential growth will take place in the Beltline, where there are currently 2,841 residential condo units under construction. Over the next several years the number of units in that area will increase by another 2,187 living spaces, which have been recently approved for construction, according to recently released data collected by Barclay Street Real Estate, Ltd.

Proposals for more than 11,000 units in the Beltline area are expected in the coming years.

By comparison, there are about 848 residential construction units under way in the downtown core and another 1,422 have been approved.

Altogether, the price tag for residential projects in the downtown core totals roughly $228 million, while those in the Beltline sit at $774.6 million.

The pace of the construction is a stark change from the city's last boom in the 1970s, when roughly 80 per cent of the building projects were office towers and 20 per cent were residential.

"We will experience such rapid residential change over the next few years that now is where we have the only opportunity to get it right," said Thom Mahler, co-ordinator of Centre City planning and design policy for the City of Calgary.

He notes that some of the condo projects are magnificent in size and scope, with the majority of new or proposed buildings featuring 250 units or more.

This is where building community -- without forcing it upon residents -- is critical, he said. Others agree.

"Simply because you're living in the downtown area and it's denser doesn't necessarily mean that you're going to be interacting with more people," says University of Calgary urban studies expert, Byron Miller.

"It's quite possible to have a beautiful physical environment where people are basically circulating as isolated individuals."

Miller says the city and developers are making great strides in achieving a vibrant and friendly core, by planning for parks and recreation centres, but challenges remain.

"There are parts of the downtown that are basically vertical suburbs, but there's not a lot of interaction and not a lot of relationship to the surrounding streetscape. People drive in and out of their condo towers and don't have many spaces or many opportunities for interacting with other people."

There are a number of planning principles underway, by the city and in partnership with developers, aimed at fostering interaction between downtown dwellers, Mahler said. Aside from long-term plans to provide recreation and cultural gathering places in the Beltline, there are also incentive initiatives for developers.

Mahler says those include so-called density bonuses, where living spaces, or density, is leveraged for communal space, which can include rooftop parks.

John Torode is including two rooftop parks in his three Arriva Towers residential project. The longtime Calgary developer says it's one way of providing a gathering place for neighbours to get to know one another in an otherwise unfriendly environment.

Retail space, meanwhile, will include restaurants, a wine store, a medical office and spa.

"I always say you can leave your home and go for a massage without getting out of your bathrobe," says Torode.

"You can't do that in the suburbs."

While Patel, in Erlton, has "faith" that with increased density, community spirit will follow naturally in the downtown core, he still plans to leave for the suburbs after his wedding in August.

He doesn't want to raise his family "in a room in the sky."

dtetley@theherald.canwest.com

[atlas_inc]

New real estate boss takes out crystal ball

Ed Jensen predicts a year of balance
MARIO TONEGUZZI
CALGARY HERALD
In’t keep on track. There weren’t enough homes in the inventory to meet that demand; consequently, that drives prices. Q: Were you surprised by what happened last year? A: 2007 turned out to be a great year statistically. I was not surprised that it had to change because I don’t think any economy or any industry in an economy could keep up the pace which we were running. We saw price increases of $10,000 to $15,000 a month on properties and that’s just not sustainable. I don’t think it was any surprise to anybody that somewhere in there we had to turn.” t was described as a Jekyll and Hyde year in 2007 for the local residential real estate market.

When the year was over, the average MLS sale price of a single-family home in Calgary rose by $72,000 in 2007 compared with the previous year, while the average price of a condominium jumped by nearly $53,000.

According to the Calgary Real Estate Board, single-family homes in the city sold for an average $472,230 this past year, up 17.94 per cent from $400,398 in 2006. The average sale price of a condo was $316,370, an increase of 19.98 per cent from $263,684 in 2006.

Single-family sales in 2007 were 18,438, down 3.53 per cent from the 19,113 recorded in 2006, while condo sales dropped by 1.9 per cent to 8,236 units compared with 8,396 sales the previous year.

It’s in this market that 51-yearold Ed Jensen takes the reins as president of the real estate board this year from outgoing president Ron Stanners.

Jensen has been in the industry since 1979 and is operating principal and CEO of Keller Williams Realty South.

This morning, he gives the city the real estate board’s outlook for the market in 2008 at the Calgary Real Estate Board Forecast 2008 Conference and Trade Show at Stampede Park.

He was interviewed recently by the Herald. Q: How would you describe the real estate market in 2007? A: The real estate market at the beginning of 2007 was a continuation of 2006. It came in like a lion or a firestorm. (For) 2006, it came in fast and hot and so did 2007.

JENSEN: ‘We’re moving towards a balanced marketplace’

Q:What is going to hapthink we’ll continue with that. Q: pen this year? What do you see as your role as A: That’s the crystal president of the organization? A: ball. Employment is I see the president’s role as leadgreat, net migration is ing a team of very experienced going to be down . . . real estate practitioners in policy-makbut it still shows a great number which ing, governance, strategic thinking for supports demand, interest rates (are our industry. good as is) the general economy of AlWhere are we going with the busiberta and the energy sector, inventory ness? . . . Figure out what type of ser(of homes) is coming back down from vices we can offer our members so a high standard. . . . they can offer better services to the

Using the basic principles of supply public in facilitating what they want and demand, we’re moving towards a and that’s to buy and sell houses.

Q: balanced marketplace . . . 2008 is going Will 2008 be a buyer’s or seller’s to be a great year of opportunity for market? both sellers and buyers. It’s going to be a great market for Q: A: What is the biggest challenge for sellers and buyers. In my opinthe industry? ion, a balanced market is a good marA: Educating the sellers that they’re ket for both the sellers and the buyers. in a different marketplace. That’s When we have a seller’s market, our issue right now and certainly I they’re happy, but the buyers are not happy because prices are going crazy. That’s not good for the economy. That’s not good for anybody in general because those sellers become buyers.

The buyers aren’t happy because they can’t find the product. It’s not an issue of price. It’s an issue of product. Q: What is your advice to buyers in this market? A: Buy as soon as possible. Buy now. . . . From the buying perspective, there’s no question in my mind that 2008 is going to be an excellent year and I believe that the prices will increase. So buy now while there’s selection. Q: What is your advice to sellers in this market? A: Sell now. The reason for that is because we’ve got product. If you’re selling and you’re moving for a reason, there’s product . . .

It’s a good solid economy. We’ve got good employment. All the economic indicators are good for this time window.

You’re selling for a reason and whatever that reason is, then you need to buy. Right now, there’s selection, which gives you the opportunity to find the real dream home. What’s the next step? That’s what everybody wants. So that’s why you should sell now. It shouldn’t be just on the money side.

There’s great values in the home, the economy is good, you’re selling now because there’s a reason to sell. Q: Is housing still affordable for Calgarians? A: I believe it is. We’re a city of a million people. Our prices are not going to be indicative of a country town, a village, of 100 homes. And we’re a prosperous community which attracts business from all over the world. So prices are relative to that type of city environment. Q: What has been the biggest change in the real estate industry over the span of your career? A: We went from blackboards to computers. . . . Is it better for consumers? Absolutely. Now with the technologies, we can bring more information to our clients to help them make an informed decision and that’s our job. Our job is to fill the wish list of our clients in respect to the type of home they want with the amenities they want. The tools allow us to do that.

Where are we going? We’re moving down the track toward bigger and better technology. We’re on the cusp on going more electronic.

[atlas_inc]

Resale homes break record
MARIO TONEGUZZI
CALGARY HERALD
The MLS resale market set a new standard nationally in 2007 with the number of sales, new listings, average price and dollar volume in Canada’s major markets all reaching their highest annual levels ever.

According to statistics released Tuesday by the Canadian Real Estate Association, total dollar volume for all MLS residential transactions last year hit $118.3 billion, a 19.6 per cent hike from 2006.

In Calgary, the total dollar volume for the year was $13.3 billion, up 16.4 per cent. Calgary was behind only Toronto, at $35.9 billion, and Greater Vancouver, at 22.2 billion.

“The statistics show just how dynamic the Canadian housing market was in 2007 in virtually all parts of the country,” said Ann Bosley, association president. “The record sales activity also shows it remains a very affordable real estate market.”

In Calgary, total MLS sales were down 2.6 per cent to 32,176 while the average price (for all residential properties) rose by 19.4 per cent to $414,066. New listings also increased by 21.2 per cent to 54,202.

Nationally, total MLS sales were up by 7.9 per cent to 362,934, the average price rose by 10.8 per cent to $326,055 and new listings also increased by 4.6 per cent to 587,607.

The resale market in Alberta remained strong in 2007, said Richard Corriveau, regional economist with the Canada Mortgage and Housing Corp.

In the province, it was the second-best year on record with overall sales at about 72,000, only a few percentage points down from 2006.

“That said, the first half of the year looked like we’d be on pace to outperform 2006, and in fact it had a number of forecasters, ourselves included, chasing a new record for the year,” said Corriveau.

“Only once the acceleration of prices took a stranglehold on demand and we saw net migration drop considerably did we realize a new record (for sales) likely would not be set and the market started to decline over the second half. So it was a tale of two markets.”

The real estate association said sales set new annual records in a number of major markets including Regina, Saskatoon, Winnipeg, Toronto, London, Ont., and St. Thomas, Ont., Hamilton-Burlington and District, Ont., Kitchener-Waterloo, Ont., Ottawa, Montreal, Quebec City, Saint John, N.B., Halifax, and Newfoundland and Labrador.

But despite the record year, data for the month of December showed sales in Canada dropped by four per cent compared with December 2006 while sales in Calgary were off 27.2 per cent from a year ago.

Corriveau said the resale housing market across the country is experiencing a soft landing in many of the markets due to the escalation in prices.

“But a saving grace for the markets has been the introduction of the extended amortizations. If we consider our forecast one year ago, the overall result across Canada exceeded forecasts and the strong take-up of the extended amortization product is one contributing factor to that,” said Corriveau.

The real estate association said sales rose more than new listings in 2007 and, as a result, the overall MLS market tightened in 2007 compared with the previous year.

“Resale housing demand remained high throughout 2007 due to job and income growth, the continuation of attractive financing, and upbeat consumer confidence,” said association chief economist Gregory Klump. “Momentum for sales activity remains strong, and sales are forecast to reach their second-highest levels on record this year.

“A decline in inflationary pressures due to slower U.S. economic growth will enable the Bank of Canada to reduce interest rates. Additional interest rate cuts this year will keep resale housing market activity on a strong footing and prices will continue to rise but at a slower pace.”

[atlas_inc]

Commercial building rises
93 per cent in Calgary
‘A huge vote of confidence’ in economy
MARIO TONEGUZZI
CALGARY HERALD
Investment in non-residential building construction in Calgary rose by a staggering 80.5 per cent in 2007 to $4.67 billion, according to Statistics Canada.

Data obtained by the Herald show $3.4 billion of that number was in the commercial sector, which was up a whopping 93.7 per cent from the previous year.

The Calgary census metropolitan area’s lofty numbers were part of the reason investment in non-residential construction set a seventh consecutive annual record nationally last year. Investment in commercial, industrial and institutional projects hit $39.8 billion, up 10.8 per cent from 2006.

In Alberta, investment hit $9.2 billion, an increase of 38.6 per cent from a year ago and that was largely due to $6.1-billion investment in the commercial sector, which was up 53.2 per cent across the province.

The city has seen a strong spike this past year in office, retail and wholesale construction, said Bruce Irvine, vice-president for business development and retention at Calgary Economic Development.

“That’s reflecting a strong growth as the city matures. In particular, we’re still satisfying a lot of the pent-up demand. Our vacancy rate is still remaining low,” he said.

“We’re starting to come into a healthier area, but it’s still quite low. The amount of ramp-up time it took design to these buildings, to get these buildings set, to find the tenant — we’re now seeing that come through.”

Irvine said the prosperity Calgarians are experiencing has continued into another year, but we’re on the verge of a soft landing as inflationary pressures mount and the capacity to build is taxed.

Non-residential construction, particularly in the commercial sector for office buildings, is one of the sectors in Calgary’s economy that hasn’t really shown much slowdown yet, said Todd Hirsch, senior economist at ATB Financial.

“And that is a huge vote of confidence by the investment community in the future of Calgary’s growth prospects,” he said. “These commercial developments and all the office towers going up . . . will be around for the long term.

“It might slow down a little going into 2008, but overall it’s still going to be one of the best growth engines for Calgary’s economy.”

The Calgary census metropolitan area includes the city, Airdrie, the Municipal District of Rocky View, Chestermere, Cochrane, Irricana, Beiseker and Crossfield.

In Calgary, investment in the industrial sector dropped to $217.6 million in 2007, down 1.95 per cent from the previous year but the institutional sector saw an increase of 72.4 per cent to $1 billion.

“We’ve seen a slight tail off on the industrial (side),” said Irvine. “Most likely it reflects just a lack of capacity, a lack of availability of serviced industrial land.”

For Alberta, investment in the industrial sector dropped to $1.3 billion, down 1.3 per cent from the previous year, but the institutional sector rose by 33.4 per cent to $1.9 billion.

Statistics Canada said the annual record across the country was thanks largely to huge gains in the construction of office buildings in Alberta and British Columbia.

And the outlook for 2008 remains positive with more than 12,000 major projects under construction in Canada for a value of $21.5 billion, an increase of four per cent compared with the same period in 2006.

Commercial investment rose 18.3 per cent from 2006 to a record $23.8 billion, while institutional investment was up 3.9 per cent to $10.4 billion, also a record. Industrial investment declined 3.4 per cent to $5.6 billion.

“Western Canada’s dynamic economy continued to spark the non-residential sector,” said Statistics Canada. “Alberta and British Columbia alone accounted for more than 80 per cent of the total increase in nonresidential investment nationally in 2007.”

[Aylmer]

where do you get all these articles?

[Rob D]

Originally Posted by AylmerOptimist

where do you get all these articles?

Two word clue under most of the article headlines "Calgary Herald"

[Aylmer]

shure, but every newspaper is filled with explosions and murders and there is like a 1 in a million chance you find something on the city!

[Rob D]

Originally Posted by AylmerOptimist

shure, but every newspaper is filled with explosions and murders and there is like a 1 in a million chance you find something on the city!

Actually the Calgary Herald has two sections called City & Region and Calgary Business, both of which usually contain the types of articles that have been posted here. Sometimes the first section of the paper has these types of articles as well. So they are actually quite easy to find.

[Aylmer]

I envy your newspaper...

everything in the City section of the Citizen is related to sombody saving a cat from a tree and NIMBYs complaining.

[atlas_inc]

ingle-family housing starts down, multi-unit way up in Calgary
Mario Toneguzzi, Calgary Herald
Published: Friday, February 08, 2008


New construction for single-family homes in January plunged by 40 per cent compared with a year ago in the Calgary Census Metropolitan Area but the multi-family market rose by 78.5 per cent, according to data released today by Canada Mortgage and Housing Corporation.

The cold weather during the month contributed to the reduction in construction activity for the single-detached market, bringing it to the lowest January monthly level since 1996.

Increased competition from resale homes will also have a dampening effect on the demand for new single-detached homes through much of 2008, said the CMHC.

In January, there were 363 single-detached starts compared with 605 for January 2007. In the multi-family market, starts were 348 in January, increasing from 195 in January 2006. The total starts in the Calgary area dropped by 11.1 per cent from a year ago to 711 units from 800 units.

According to the CMHC's latest forecast, single-detached starts in 2008 are expected to reach 6,400 units this year, a drop of about 18 per cent from 2007. The forecast is expecting multi-family starts to drop over 19 per cent to 4,600 units.

Total housing starts across Alberta's seven largest centres decreased from 2,887 units in January 2007 to 2,185 units in January 2008, representing a decline of over 24 per cent. Nationally, urban starts in January totalled 12,023 units, a decrease of about 11 per cent from a year earlier.

The Calgary census metropolitan area includes the city, Airdrie, the Municipal District of Rocky View, Chestermere, Cochrane, Irricana, Beiseker and Crossfield.

mtoneguzzi@theherald.canwest.com

[jeffwhit]

Originally Posted by AylmerOptimist

I envy your newspaper...

funny, I had that phrase filed under "things you'll never hear spoken by another human being."

[atlas_inc]

Developers must be willing to take big risks


For the past few years, I have been writing about urban living in Calgary: how it is evolving, how it compares to other cities and what the issues are.

It is now time to focus on the inner-city condo developers who are instrumental in shaping Calgary's city centre.

In my role at Riddell Kurczaba Architecture, and as a member of the Calgary Planning Commission, I have developed a greater appreciation and respect for the developer over the past year.

As for the commonly-held myth that developers have it easy in that they just buy the land, build on it and make a fortune, it just isn't so.

Condo developers, in particular, take a huge risk, putting up tens of millions of dollars to purchase land and then millions more for architectural fees, engineering and survey fees, building and development permit fees, marketing and advertising fees.

This is all done with the hope the market will stay strong or, as in today's case, improve so they can not only recoup their costs but also make a profit.

You have to be willing and able to take big risks if you are going to be a condo developer, as you don't just build one house at a time, you build hundreds.

Think about it. If a new condo buyer is willing to put up five per cent of the cost of the condo as a deposit before it is built, the developer has to put up the other 95 per cent of the cost for a building that will not be completed for two or three years.

With today’s rapidly increasing construction costs, and ever increasing time it takes to get approval and permits in place, the risk is very significant.

As well, building a condo is a very complex process, one that can fall off the rails at any time. In many ways, the developer must do a lot of “crystal ball gazing,” trying to predict the future of the condo market.

What size of condos will people want in the future? Will people be willing to live in Victoria Park or along the CP Rail tracks?

If we build it, will they come? What finishings will be fashionable in two years? Should we go after the “empty-nester” or “young professionals” market or can we overlap the two?

Who else will be building in the area in the future? Can we come to market first?

Can we get increased density to keep the costs per unit down? Can we get timely support from the city and community association? What will be the construction costs next year and two years out?

Effectively managing a condo development from beginning to end is no small or easy feat. Five key steps are involved:

Much time, effort and research is needed before land is purchased for a development. You have to evaluate many different properties, sometimes working with multiple owners.

You also have to look at current zoning for the land and determine if changes are needed and the probability that it can be changed to suit the needs of the market or the land.

Changes could mean increasing the density, which will then change the land value and the development's economic feasibility (i.e. can you construct a 20-storey condo building or a 30-storey one)?

Are there issues with the community association (i.e. are they pro development)? Time is money, so can these issues be reasonably resolved?

What has been on the land in the past (i.e. are there any contamination issues)? Is a mixed-use development feasible — condos, offices, retail or maybe a hotel? It is a bit like being a Vegas bookie: you have to determine what parcel of land will be a winner and which would be a loser. Attributes of a developer: Visionary. Risk taker. Access to capital. Patience. Persistence. Good negotiator.

Detail oriented.

Assuming the zoning is appropriate for your development, you then have to negotiate with the city on what you can build on the land. You have to do the same with the community association and immediate neighbours.

If you want to increase density, what will it cost you? Do you add in some LEED (Leadership in Energy and Environmental Design) elements like a green roof, a plaza or pocket park, or contribute cash to the Beltline Improvement Fund?

All of this takes time and all the while the developer must keep in mind the goal of making some money doing this.

While the city has land-use guidelines for every block, every development site has its own unique characteristics and opportunities that must be evaluated and negotiated with city planners, the planning commission and finally city council.

Everything must be taken into account including shadows on public spaces, access to transit and LRT, density, set-backs, landscaping, number of parking stalls, access points, street trees and garbage areas.

This step can take 12 to 18 months or longer. I know of one project that has been at the city for over two years and it is still not approved.

All this time, the developer is paying interest on land cost, consultants and designers and is receiving no revenue.

The cost to submit a development permit — including architectural, engineering, consultant and permit fees — along with the cost to liaise with the city, community association and neighbours is easily in the $2 million range for a 200-unit condo development.

With city approval, the next step is to get a building permit, which has more architectural fees attached to it and more liaison work with the city.

This process can take another three to six months to work out the details and cost hundreds of thousands more dollars.

At this point, a developer has to cost out the project to the finest detail, from the size of the counter tops and quality of the granite to the number of electrical outlets. Remember: a $1,000 error per unit, over 200 condos, can become a $200,000 mistake.

Once costs are established and the price to customers is determined, the developer has to market the property in a manner that is competitive with other condos, old and new.

Typically, the bank will want to see at least 50 per cent of the condos sold before it will release the money for construction to begin.

In today’s market, construction costs are going up one to 1.5 per cent per month, which means that a one month delay for a 200-unit condo project, at an average size of 1,000 square feet per unit, that costs $250 per square foot to build, will set a developer back about $500,000.

The costs keep increasing, but the price of the condos has been set, so every month’s delay means less profit and potential bankruptcy.

While the marketing is underway, the developer must negotiate a series of different contracts for the construction of the condo, from the concrete and foundation contracts, to those who supply the plumbing, electrical and mechanical, to those who will do the finishing work.

Once the contracts are signed and construction begins, there is two years of ongoing negotiations with trades and construction managers to keep the project on time and on budget. Anyone who has built a house or done any major home renovation can appreciate how challenging this is.

With about 50 cranes dotting the city centre skyline, and approximately 80 per cent of them building condos, I thought it would be interesting to learn more about the developers responsible for shaping Calgary’s new skyline.

In upcoming articles, I will interview and discuss specific projects with some of the key individuals to give you a behind-the-scene look at how developers think, what their proudest achievements are, the challenges they face and what their thoughts are on the future condo market.

[atlas_inc]

Calgary has lowest downtown office vacancy in Canada

Mario Toneguzzi
Calgary Herald
Wednesday, February 13, 2008


CALGARY - Calgary leads the country with the lowest downtown office vacancy rate at 3.2 per cent despite a steady climb in that number over the past year.

A downtown office report by Barclay Street Real Estate Ltd., says the vacancy rate is expected to moderately rise in 2008 to the 4.5 per cent to 4.8 per cent level as sublease space continues to rise. The report by the company's research analyst Michelle Pink says at the end of the fourth quarter of 2007 there was just over one million square feet of space available of which 353,314 or 33 per cent was being marketed as sublease space.

The downtown office vacancy rate has increased throughout the year, said Tanya Colasurdo, associate broker and principal with Barclay Street. The record low of 0.4 per cent was registered about a year and a half ago.

"We've steadily been climbing and we've also added on additional inventory which plays a part of that. At 3.2 per cent vacancy now we're continuing to see a trend towards more space coming on the market right now."

The report said development continues to be very active in the downtown market with more than one million square feet of new office space ready for occupancy in 2008 with the completion of three office projects - Bankers Court, Livingston Place Phase II and 8 West. By 2010, there will be an additional 5.8 million square feet of office space added to the inventory, bringing the total in the downtown core to 40.2 million square feet of leasable office space.

The report said the average net rent lease rate for all building class levels was $36 per square foot. Premier Class AA space was averaging $42 to $55 while new development had rental rates ranging between $32 to $45.

Colasurdo said the expectation of a larger jump in the vacancy rate will come about 2010 with a projected vacancy rate of between 10 to 12 per cent then because of all the new development.

Barclay Street also said investment sales in 2007 totalled $3.2 billion in office/retail/industrial commercial real estate, across the city, with an increase of 42 per cent from 2006 in these sectors. In an investment review report, the company said institutional investors are still actively seeking to place funds in Alberta and many entrepreneurial investors are sitting on capital waiting for the right deal. The bulk of the investment sales in 2007 was in the office category, representing $2.1 billion. The downtown office market saw the largest increase in dollar volume from $636.6 million in 2006 to $1.6 billion in 2007. There were 17 downtown transactions last year.

mtoneguzzi@theherald.canwest.com


© Calgary Herald 2008

[atlas_inc]

Tower built on confidence to rise in core
Eighth Avenue Place proceeds entirely on spec

Mario Toneguzzi
Calgary Herald
Saturday, February 23, 2008
Despite a slowdown in Calgary's economy and increasing downtown office vacancy rates, construction has begun on a 49-storey tower that will add more than one million square feet in the core by early 2011.
The Eighth Avenue Place development, formerly Penny Lane, is proceeding entirely on speculation with no pre-leasing, the Herald has learned.
A decision on when to proceed with a second tower planned for that site will depend on how leasing goes for the first tower and future market demand. The second tower is a 39-storey, 800,000-square-foot development. The entire project, including the two towers, is an estimated billion-dollar development located in the block at 8th and 9th avenues S.W. between 4th and 5th streets.
Excavation and shoring is underway at the site for the East Tower -- phase one of the project.
"Historically, Calgary has always had the strongest office space demand for the better quality product and the calibre of this building is going to be above anything we've seen in Calgary. In fact, it would probably be ranked as one of the top quality buildings in Canada once completed," said Randy Fennessey, president of Colliers International in Calgary, who, with Jim Rea, the company's senior vice-president and partner, is the exclusive leasing agents for the project.
Because of the large number of head offices in Calgary in the energy sector, there will continue to be strong demand for premier downtown office space, he said.
"We think we're in a good time band of completion relative to other new product coming into the marketplace and we feel very confident that Calgary and the Alberta economy is going to support ongoing growth and office space demand," said Fennessey.
A downtown office market report by Colliers said the vacancy rate at the end of 2007 was 3.2 per cent, up from 0.3 per cent at the end of 2006. This increase in vacancy was primarily due to the 1.3 million square feet of new office development completed in 2007. The downtown office market has an inventory of about 34 million square feet.
"(Eighth Avenue Place) is a very interesting development and we think it's a very good one," said Bruce Irvine, vice-president for business development and retention at Calgary Economic Development.
"We still have 50 per cent of the downtown square feet that's under construction right now in major Canadian centres occurring right in Calgary," he said.
"We've always had about three million square feet or more in the pipeline ready to go," Irvine said.
Irvine said with projects such as EnCana's The Bow and Eighth Avenue Place, Calgary is coming of age in terms of the quality space.
The Eighth Avenue Place project is owned by SITQ, a subsidiary of Caisse de depot et placement du Quebec, AIMCo (Alberta Investment Management Corp.) and Matco Investments Ltd. Gibbs Gage Architects designed the development. The development team also includes Hines as development manager, EllisDon as the contractor, and architectural firms Pickard Chilton and Kendall Heaton Architects.
The building will also incorporate best practices in environmental design, targeting a LEED Gold certification.
"It's a triple A (class) building," said Rea, adding that access to retail, parking and transit is a draw.
The project is also in the heart of Calgary's financial core.
The west tower is phase two of the development and a decision to build that structure will be based on the success of the first tower and demand in future market conditions, said John Smith, vice-president of 20 Vic Management Inc., which is acting as the owners' representative on the development.
mtoneguzzi@theherald.canwest.com
- - -
EIGHTH AVENUE PLACE
- Located at the former Penny Lane block at 8th and 9th avenues S.W. between 4th and 5th streets;
- Construction started on Phase I -- a 49-storey, one-million-square-foot office tower (East Tower);
- Includes a 55,000-square-foot retail podium, an indoor winter garden, an outdoor park and plaza, and an underground parking garage with 1,143 stalls;
- Ownership group consists of AIMCo, SITQ, and Matco Investments;
- Tower is scheduled for completion in early 2011;
- A future 39-storey, 800,000-square-foot office building (West Tower) is also part of the planned development, but a decision on proceeding with it will depend on market demand.

[atlas_inc]

U.S. pays for urban sprawl
Diane Francis, Financial Post
Published: Thursday, March 13, 2008

Story




The price calamity afflicting mortgages in most regions of the United States may have been eased with yesterday's Fed bailout, but prices will get a whole lot worse as oil heads for US$150 a barrel or US$4 or US$5 a gallon.

That is because oil and property values intersect in the United States more than elsewhere because its cities have grown haphazardly and are unattractive urban sprawls linked by gigantic expressways. People are car-dependent and highway-dependent and must earmark more to pay for gasoline.

Americans moved farther out to buy bigger homes, which are costing more to heat or air condition.

Canada has sprawl, too, but in the United States, the laissez faire nature of development and land use, combined with the flight to the suburbs for racial and economic reasons, has resulted over decades in decrepit downtowns and suburbanites who are one or two hours' commute from work.

The result is a country that is a sea of subdivisions, gated communities and suburbs that with gas at US$4 or US$5 a gallon, will lose even more of their real estate appeal/value.

It's already making a difference. Take Florida. The homes farthest from the beachfront, or from an airport, are worth a fraction of any price paid after 2003. Meanwhile, areas atop amenities, public transport, the beach or an airport have fallen less in value than elsewhere. The same applies in other regions in recession.

The market deterioration is evident in the DOM, or days on market, figures. It's not unusual to see a listing that has been more than 200 days for sale. One Boca Raton, Fla., property I looked at started at US$800,000 225 days ago and is now on the market for US$550,000 and has not even had any lookers, much less takers.

Another, owned by a friend in Naples, Fla., is listed for a third of its 2004 price and still no takers for 100 days.

In Canada and Europe, property values have remained steady, or gone up in hot areas, due to a combination of tough mortgage rules plus the gasoline factor. Canadian and European cities have more density, less suburban sprawl and more public transport.

(Interestingly, Canada's REITs have fallen 25% in value, but there are other factors for that, such as Ottawa's taxation of income trusts plus their exposure to U.S. real estate.) Florida has always been a crazy market with cowboy developers building anywhere they wanted to. Arizona is also in poor condition, and potential Canadian buyers should be wary even now.

Foreclosures are always a good idea, but Wall Street bailouts are creating uncertainty and bottlenecks. Very few are being acted on, which means the bottom is not near yet.

Interestingly, American residences or offices located on public transportation links are king. Manhattan keeps increasing in value, as does prime real estate in downtown Chicago or San Francisco. Meanwhile, their poor neighbourhoods and suburbs reel.

An estimated 20% of all homeowners in the United States now have what is called an "upside down" mortgage, or a mortgage that is higher than the value of the property.

This has led some to walk away or "jinglemail," which is when owners mail their keys and deeds back to their mortgagees/banks to get out from under their debts.

Stay tuned.

dfrancis@nationalpost.com

[atlas_inc]

http://www.canada.com/calgaryherald/...42ea0f&k=85696

Housing starts hit new high for Calgary region
Mario Toneguzzi , Calgary Herald
Published: Tuesday, April 08, 2008

CALGARY - Multi-family housing starts in the Calgary region soared to a monthly record high in March while single-detached starts continued to fall compared with a year ago, according to preliminary figures released today by Canada Mortgage and Housing Corporation.

The "unprecedented" level of new multi-family construction in the Calgary Census Metropolitan Area also brought total housing starts to a monthly record level.

In March, total housing starts were 3,068 units, up 147 per cent from the 1,242 units started in March 2007. Year-to-date, housing starts totalled 4,656 units, up almost 68 per cent as compared to the first quarter of last year.

The CMHC said multi-family starts, which include semi-detached units, rows, and apartments, amounted to 2,652 units in March, close to a fourfold increase over the 681 units started in March 2007.

"Current market conditions do not appear to support this level of construction," said Lai Sing Louie, the CMHC's senior market analyst in Calgary.

"However, based on the nature of these large multi-tower projects, the majority of the units will not be available for occupancy for another two to three years," he said.

Year-to-date, multi-family starts have reached 3,589 units, up 239 per cent from the same period last year.

Despite the buoyancy of the multi-family market, single-detached starts declined by almost 26 per cent, from 561 units in March 2007 to 416 units in March 2008.

"Single-detached housing starts continue to be impacted by the high level of competition in the resale market and potential homebuyers taking more time to shop around," said Louie.

After one quarter, single-detached starts are 1,067 units, down almost 38 per cent as compared to the same period last year.

"A reduction in the sense of urgency to buy compared to last year combined with a lower level of demand caused by weaker net migration will likely continue to impact new home sales," said Louie.

On the strength of Calgary's new multi construction, total housing starts across Alberta's seven largest centres increased by 25 per cent, from 3,223 units in March 2007 to 4,031 units in 2008. Nationally, urban starts in March 2008 totalled 15,608 units, up 24 per cent from a year earlier.

The Calgary CMA includes the city, Airdrie, the Municipal District of Rocky View, Chestermere, Cochrane, Irricana, Beiseker and Crossfield.

mtoneguzzi@theherald.canwest.com

-------------------

[atlas_inc]

Sky isn't falling on Calgary's condo market
Fears of unit oversupply seem to be fading

Richard White
Calgary Herald


Saturday, April 12, 2008


'To build or not to build" -- that is the question facing many Calgary condo developers.

As a Calgary Planning Commission member, I see major new condos being proposed for Calgary's downtown almost every other week.

Yet, one has to wonder when -- or even if (because a developer with approval has no obligation to actually build) -- they will be constructed.

At least two condo projects that recently received commission approval will not be going ahead anytime soon, with representatives of one saying they won't even think about marketing their project until 2009.

As marketing is the first step, even before construction, the move-in date for that condo is at least three years after that point.

Friends and colleagues constantly ask: "Do you think Calgary's condo market is overbuilt?"

I was never comfortable answering this question, as I really didn't know the answer -- that is, until I received a copy of independent condo market research firm MPC Intelligence's newly released Calgary Condominium Market Report.

Not to bore you with the many, albeit interesting, details of the report, here is the key finding that helps address this question in an objective manner:

"Since September 2007 (which according to MPC's research was the market low as far as condo demand went), we have witnessed a slowed absorption of available product on the market and delays from many developers to introduce new sites," says the report. "These changes are resulting in a stronger and more stable real estate market in Calgary in 2008."

In terms of Calgary's downtown, the report indicates that market continues to be an area of good stability and that there was decent absorption of units in 2007 -- not as strong at the hot market of 2006, but still very good based on historical absorption rates.

The report indicates more than 1,250 condominiums were purchased in the last 10 months of 2007, with the strongest projects being the Waterfront and Le Germain condo developments.

More insights were gained after talking to Jennifer Podmore Russell, managing partner of MPC.

She says Calgary's condo market was "white hot" in 2005 and 2006 because Calgary condo prices were underpriced compared to those in the Vancouver and Toronto markets, resulting in many real estate speculators moving into the Calgary market.

She points out that "in 2007 -- and to some extent in 2008 as well-- these speculators began selling off their investments, which in turn put the brakes on the surge in demand and increase in condo prices in Calgary, not dissimilar to what has happened in Vancouver and Toronto."

Podmore Russell feels that Calgary has returned to a more traditional market demand -- one based on the purchaser being the person who will be living in the condo.

She sees a return to "a more modest increase in value, where five to 10 per cent annual increases will be the norm in the future."

Calgary is unlikely to see projects selling out in a weekend, she says; the market will instead see slow and steady sales.

"The ideal scenario for developers is when the last unit sells on the last day of construction, since you don't want to be selling all of your units at 2008 prices when the condos won't be completed until 2010," she says.

MPC's findings are reflected in some newly-launched Calgary products.

For example, Balboa Land Investments' Keynote project at 1st Street and 12th Avenue S.E. -- which consists of a 14-storey office tower, Sunterra market, bistro, cafe with wine shop and two condo towers -- released 67 new units for sale in mid-March.

One third of the units sold in two weeks.

Astoria condos, by Arcus Developments on 10th Avenue S.W. at 9th Street sold a total of 45 units from June 2007 to early 2008 (source, 2008 Buss Marketing Condo Report.

It recently released 120 additional units in the second phase of the project, selling 35, or 30 per cent, in the first weekend alone.

Five of the six penthouse suites, which are priced at more than $1 million, were also snapped up. Such totals will likely make it the most successful launch of the spring, says Arcus Developments.

It's been so successful that Arcus is looking at accommodating requests to combine or re-configure other suites on the uppermost or Platinum floors, levels 27 to 33, to create more three-bedroom units and larger square footages

While such sales figures are perhaps not quite as impressive as the 2006 sellouts that took only a weekend, they are far better than sales of less than five units per month that many condos experienced in the later half of 2007.

This is a sign of conditions returning to a healthy condo market.

During recent conversations with Mel Grebinsky, general manager of Generations Development -- a division of Genesis Land Development and Calgary's largest condo developer -- he indicated his high optimism about the Calgary condo market.

Generations Development currently has 124 condos under construction, development permits for 833 more and 1,070 in the various stages of planning.

As Podmore Russell says, Calgary has a "very strong economy."

"People still need homes and people's lifestyles are changing such that the condo market in Calgary will continue to be strong.

"For the past nine months, Calgary has experienced the Chicken Little Syndrome. However, the sky isn't falling on the condo market, it's just returning to a more stable and sustainable situation."

Richard White is a Calgary-based writer who has written on art, architecture and urban culture for more than 20 years. He is also an Associate at Riddell Kurczaba Architecture and can be reached at richardw@riddell.ca.

In Short:

- Downtown absorbed more 1,250 condo units in 2007;

- Recent sales of new condos have been strong;

- 2005/06 condo price increases were an anomaly -- condo price increases returning to "more normal" five to 10 per cent annual increases;

- Calgary condo market will improve in 2008.

© The Calgary Herald 2008

http://www.canada.com/calgaryherald/...a-4b1bd2ac4c1c
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