Calgary Times ArticleAnother piece worth reading from the Calgary Times regarding the Alberta Real Estate market.
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Article Link Prices remain strong in Alberta with a quote from TD “This relatively resilient demand backdrop should also lead price growth in the Prairies to outperform the rest of Canada moving forward”. This certainly bodes well for Melcor on the land development side.
The industrial side appears to be Ok with approximately 4% vacancy rates but the office market is still in pretty sad shape. For example, the Q4 2022 Colliers report has Edmonton office vacancy rates at 19.5% and Calgary is even worse at 30%! In the Q3 2022 report Melcor indicated that its occupancy rates on a YTD basis were in much better shaped at 87.9% including the REIT.
There is value to be found here. The questions becomes how the Board best unlocks that value and closes the discount.
LR