The only remaining available space of Encana's that is being left behind is Encana Place across from the Palliser. All of other other remaining space currently occupied by Encana/Cenovus is leased (Bankers Hall, TD Canada Trust Tower, One Palliser). The opening of the Bow will have virtually zero effect on the Calgary office market. In case you were wondering...even Encana themselves who created this project to consolidate office space has leased over 300,000 sf in Telus Tower as there is not enough space in the Bow to accomodate their requirements.

EAP2 will start construction in early 2012, deals are being signed now. Most other Landlords with active development sites will be very actively marketing new projects. There are 3 'known' companies looking for 500,000+ sf right now and many many more looking for other various sizes of significance. That sub % vacancy rate will continue to drop rapidly.

Having the Jets will make a difference. Next time something like Agricore thinks about moving to Regina, execs are going to have to weigh losing their NHL box. Winnipeg couldn't have bought the positive publicity that the Thrashers purchase/season ticket sellout has produced, even if they did an advertising buy of $50 million. The city's reputation as a place that has no money, no initiative, no young people and no business activity is in tatters.

winnipeg will just fill the space with small bushiness that will grow

Bankers Hall is far from old and beatup. In fact, most of if not all of the space being let go by Encana is Class A or above.

I'm just wondering if there is was a debate about weather national head quarters for corporations and government institutions be de centralize to create balance throughout the country. The benefits of it economically and politically for the country as a whole.

I think there could be an argument behind it. 3 major population centers, a number of regional centers and a 1 world city (Toronto) sorry Vancouver and Montreal. Maybe it's a case on point already. why not 10?

There is so much demand in the Toronto area that it just seems a throw in the bucket for Toronto when you compare numbers with other centers. Even with Calgary's

In an effort to save money the federal government is looking at moving employees out of private office spaces in downtown cores and placing the employees in cheaper offices outside the cores. It will be interesting to see how this will effect Class A office space.

The Star/Globe article that was posted stated that multiple projects could break ground in Toronto shortly.

1. 16 York (almost ready to go - 3 trailers on site already) - 160 meters
2. Bremner Tower - Excavation underway - although no announcement made - 130 or 140 meters????
3. Queen Richmond Centre - smallest of the upcoming projects - in a trendy area of the Entertainment District.
4. Waterpark Place - just announced last week

______ (Least likely of the 5 to have an announcement) is:

5. Bay Adelaide Centre (East Tower) - 196 meters

:cheers:
I like the cut of your jib.

Flurry of office leasing activity for downtown Calgary
Record pace drives down vacancy rate
By Mario Toneguzzi, Calgary Herald


http://www.calgaryherald.com/busines...#ixzz1UpbxwX5d


CALGARY — Calgary’s downtown office market experienced a flurry of leasing activity in the second quarter of this year, recording the largest ever level of absorption of space for a single quarter, according to commercial real estate firm Colliers International.

A report by the company said the city’s downtown office tenants continue to absorb office space at an accelerated rate and those still looking for quality space in new buildings may have missed the opportunity for now.

Nearly 1.2 million square feet was absorbed in the second quarter alone — the largest ever for a quarter — and that brought the year-to-date absorption to 1.5 million square feet, almost equal to that for all of 2010.

The vacancy rate has dropped from 15.22 per cent on July 1, 2010 to 7.79 per cent at the end of June this year.

Why is it so hard to accept that both Calgary and Toronto (along with Vancouver) can both be successful? Toronto is a great place, no question, but it isn't the only game in town.

Where in that post did I post anything about Calgary or Vancouver being unsuccessful because they have high vacancy rates?

Coming down from 10% will be hard especially when the 2 million square feet inside the Bow comes online.

haha I forgot about that little argument, boy has time been my friend on that one.

Vacancy rate of 7.9%, even lower at 6.4% for AAA space. Vacancy is actually supposed to decline when the Bow opens its doors.

The only remaining large block of space left from the Bow fallout is at Encana place, 400,000sf, which considering the over 3 million sf of absorption Calgary recorded LTM Q2, is peanuts.

The Calgary market right now is unbelievable, its running at levels barely seen in the largest markets, recording absorption close to levels seen in NYC, which is having a great year as well.

Vacancy in 2013 is forecast to be in the low 5s on total, much lower for AAA. Expect to see at least 3 major office tower announcements over the next 12 months.

I'm guessing Calgary will have a couple of 500 fters underway by this time next year. EAP, City Center and Centennial3 seem primed to go. Could also see Bow South block, one of the Palliser twins or Century Park go ahead. EAP2 seems most likely as the foundation is in place.

Except once again, nearly all of the space Encana currently occupies has already been re-leased to other companies. There will not be the glut of vacancy you keep suggesting.

Unless someone plans on playing volleyball or dodgeball in an office 20 floors up, the space has to come from somewhere. Preleased or not, and it doesn't take a mathematician to figure that out.

Office space doesn't disappear into thin air, office workers don't burst into existance.

When the Bow comes online, vacancy will go up.

Yes it will go up by 400,000 sq ft which is precisely how much space that Encana currently occupies that to this day that has not been re-leased. Nobody will be playing dodgeball in empty floors, the fine employees of CNRL, Apache and others who have already leased the "vacancy" will be occuping it.

Its not unreasonble to suggest that vacancy might stablize or perhaps tick up slightly, but for it to return to 10% as you suggest isnt going to happen. In a market of 38 million sf, that would suggest that over a million sf will become vacant in the next 12 months at the same time Calgary is experiencing record activity.

There is a lot of flip flopping in Toronto. Companies are leaving old space for new towers while other companies are leasing the old space to totally retrofit over the next 12 months to eventually abandon their current locations.

This may be what Caltrane is suggesting. We know the majority of space Encana is abandoning is spoken for however, do we know the companies that will eventually occupy the space aren't going to abandon space themselves? This could take upwards of a year. By then, 500,000 or so square feet hitting the market might be a nice reprieve.

there needs to be some extra space. having none at all is not a good thing. the faster they get some more built the better.

The companies moving into the old Encana space are absolutely vacating some space, however the second tranche of vacated space is as well already spoken for as is the third and so on. Space is very difficult to come by right now and all classes of office space are predicted to decline in vacancy, straight through the Bow's opening.

And yes 500k of fresh space would be welcome news for the market, as it stands right now any substantial new supply is 2-3 years down the pipeline at the earliest.

As an aside any mod want to change the title of this to a general Canadian office space thread? Might make for some good discussion and the type of news discussed would often be a precursor to office tower development.

I don't get it!

You guys keep saying, there is so much demand in Calgary and there isn't enough space, yet vacancy is close to 10%? (And all vacated space is spoken for)

Where is the logic in this please explain!/?