We all know that the real estate market in Calgary in booming, and that it’s not showing any signs of slowing down any time soon. But when you see the value of homes rising in a day when they’re softening everywhere else, and all that buzzing activity when other markets around the country are relatively quiet, remember that when talking about the hot, hot real estate market in Calgary, it’s typically referring to the residential market.

And in fact, the Calgary commercial market has fallen in the last quarter,and has seen a decrease in just about every category.

According to RealNet Canada, investment in Calgary commercial real estate totaled just over $757.94 million in the first quarter of 2013, and a total of only 115 transactions over the $1 million mark took place in total. That’s down from the $1.45 billion that was seen during the last quarter of 2012.

Unfortunately, it only gets worse. When you compare the commercial real estate market in Calgary year-over-year, it shows that there’s been a dollar volume decrease of 18 per cent, which is a significant drop.

However, RealNet says that business owners and commercial property investors in Calgary shouldn’t be worried. One reason is because the overall deal velocity, meaning that speed at which transaction have taken place, has remained stable and that it appears as though it’s going to throughout the next year. The real estate tracking agency also says that these levels should remain between 114 and 119 for the coming year. That’s an indication that not a lot of deals are falling through before closing, and that once a deal is started, few times are there other elements that hold it up. That’s always a good indication for the commercial market.

RealNet also says that while these newest figures may be worrisome, there’s no need for panic just yet. They don’t actually show that commercial real estate in the city is in trouble, but rather that it’s leveling off after a very hot quarter.

“Quarterly investment volumes have been varied during the past year as a result of a swell of high-value transactions in the second and fourth quarters of 2012,” says Paul Richter, director of research for RealNet Canada Inc. “Deal velocity has remained very steady throughout the same time and reassures that the market is operating on a strong foundation of mid-range transactions.”


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