Oilpatch downturn takes toll on Calgary companies that rent suites

Companies that rent out executive suites and furnished apartments in Calgary are shedding inventory in another sign of the economic slump in Calgary. 

“Certainly our occupancy has been off. And it’s really off with oil and gas companies. We’re seeing not as much transfer of staff… and them coming to work on projects for extended periods in the Calgary markets,” said Brad Krizan, regional president for Premiere Suites. 

In recent months, the company has been whittling away its inventory of furnished apartments, reducing its stock by roughly 30 per cent.

Chris Flores, a manager with Executive Suites by Roseman, says he’s seeing the same drop in demand. 

“Some occupancy is actually healthy, but I don’t want it go any lower,” he said.

More options for renters

Flores says short-term accommodation isn’t needed as often, because renters have more options these days.

“When Calgary was doing very, very well and oil prices were very, very high, a lot of these builders started condo buildings that have just completed recently, so you’ve got a lot of rentals available in the downtown core.”

 Flores expects business from oilpatch clients to pick up later this year.