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Friday, 5 October 2012

CALGARY — Calgary’s downtown office market experienced something in the third quarter it has not seen for more than two years — softening in demand for space.
A report by Newmark Knight Frank Devencore says absorption, the change in occupied space, in the quarter was a negative 141,200 square feet, the first negative absorption quarter in more than two years.
Michael Gigliuk, the real estate company’s vice-president/associate and author of the report, said the negative absorption “signals a change in the direction in the office demand cycle in downtown Calgary.”
“The softening in demand is the result of conventional oil and gas energy firms cutting back capital expenditure budgets and drilling activity,” said Gigliuk. “As a result of the anticipated 20 per cent drop in capital expenditure spending, absorption is expected to be negative for the remainder of 2012 and into 2013.”

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