Calgary office market sees downturn due to slumping oil prices

Vacancy rates in the downtown office market have risen significantly amid declining oil prices, says a new report by commercial real estate firm Newmark Knight Frank Devencore.

The report said the city’s downtown office market recorded negative absorption — the change in occupied space — of 561,700 square feet in the fourth quarter of 2014, the worst negative demand quarter in more than five years.

“As a result of the increase in vacant square footage, the vacancy rate increased by 1.4 per cent quarterly and 1.8 per cent annually,” said Michael Gigliuk, vice-president with the company.

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