Canadian Office Space Market

[LeftCoaster]

Not quite tall enough to do it

Plus trump is still very visible down Adelaide from the west.

[Nouvellecosse]

Man is this depressing. Perfectly good office demand that could go toward a great and exciting project is being absorbed by this... blah.

The design is conservative enough as one. But two makes me want to cry.

[caltrane74]

But these business managers want floor space that is easy to assign.

Open Concept as they say.

[Coldrsx]

31k expansion, 96k taken

Edmonton’s First & Jasper development fully leased


BY BILL MAH, EDMONTONJOURNAL.COM JUNE 12, 2012 2:03 PM

Demolition continues on the old Bank of Montreal building in Edmonton.
Photograph by: Bruce Edwards , Bruce Edwards
Office space at the First & Jasper development in downtown Edmonton is now fully leased.

Technical professional consulting firm Jacobs Canada Inc. has agreed on a lease with building owner GE Canada Real Estate for 96,000 square feet of the former Epcor Tower.

The 15-storey tower, which is being redeveloped, will also house engineering and geoscience professional group APEGA, Williams Engineering and an undisclosed federal government department.

Jacobs will vacate 65,000 square feet at its current Edmonton location at 100th Avenue and 106th Street and move into First & Jasper in December.

http://www.edmontonjournal.com/busin...700/story.html

[WhipperSnapper]

Originally Posted by Nouvellecosse

Man is this depressing. Perfectly good office demand that could go toward a great and exciting project is being absorbed by this... blah.

The design is conservative enough as one. But two makes me want to cry.

What's depressing is 20 plus years of chain linked fences and gravel in the heart of the CBD. I'm not sure what great and exciting project you're talking about either. The market is dominated by a small group of margin driven developers and companies leasing space are cutting back everywhere regardless of their profit margins. This is the era we live in today. Except it. Overall, Bay Adelaide performs where it needs to ... at street level. Skylines change and one day it will be completely encapsulated by grander towers.

[taal]

Any news on oxford ??? Namely their 100 Adelaida project ?

[SFUVancouver]

Here’s a timely article regarding the tectonic shift that’s happening in the Vancouver office market regarding office buildings and their proximity to rapid transit.

http://www.theglobeandmail.com/repor...rticle4248615/

Transit-oriented buildings fetch higher rents
FRANCES BULA
VANCOUVER — The Globe and Mail
Published Monday, Jun. 11 2012, 4:44 PM EDT

When Al Batchelar and his team at Commissionaires BC decided they needed new space for their business, they looked at several suburbs and types of office developments.

In the end, they chose a spot in Surrey’s Station Tower, which is steps from the Gateway SkyTrain station, picking it over cheaper space in a Surrey or Richmond business park.

“A lot of people who need our services don’t have transportation,” says Commissionaires’ chief executive officer Mr. Batchelar, whose non-profit company, originally started to provide work for war veterans, now provides fingerprinting and criminal-records checks for people who need them as a condition of employment. The company also runs courses for people training to be security guards.

“Even if we had a place with lots of parking somewhere else, we just couldn’t get people there.”

That scenario is playing out in major cities across Canada, as more office tenants are choosing locations that are as close to transit as possible, even if it means paying more.

As a result, buildings right on top of transit are seeing their vacancy rates shrink and lease rates rise.

Office vacancies are creeping up in buildings that are sometimes only a few crucial blocks away from a transit site. And the vacancy rates are even grimmer for many older business parks that were built kilometres from transit at a time when it seemed savvy to construct whole campuses on cheap land far from central business districts.

“What we are hearing from tenants most often these days is that priority one is access to transit and it can’t even be a walk down the street,” says Brett Miller, president of Jones Lang Lasalle Real Estate Services in Canada.

[someone123]

Distance from transit makes a big difference when you're walking, although I don't mind walking as much as transit and transit is better than driving. The "20 minute" commute on transit can easily become the 45 minute commute when you walk from your house to transit, wait for transit, get off, then walk to your office. My old 10 km commute took 40 minutes because it involved a transfer.

Office parks are one of the worst planning mistakes ever. They look "cheaper" on the surface, but that's only because businesses either don't pay certain costs (infrastructure) or frequently fail to account for others they do pay for (employee commuting time).

[Coldrsx]

Huge absorption in Edmonton

Edmonton office vacancy rate falls


By Journal Staff, edmontonjournal.com June 18, 2012 12:28 PM


The vacancy rate for downtown office space has declined to 7.5 per cent, Cushman & Wakefield said in a report Monday.
Photograph by: John Lucas , John Lucas/Edmonton Journal

EDMONTON - Strong demand is shrinking vacancy in Edmonton’s office market in the second quarter with nearly 400,000 square feet of absorption, says a national report released Monday by Cushman & Wakefield.

A strong oil sector, along with the industries that service it, are driving demand, the real estate company said. Vacancy in the downtown core dropped to 7.5 per cent in the second quarter, down from 8.5 per cent in the previous quarter. The market had positive absorption of more than 170,000 square feet of downtown office space

http://www.edmontonjournal.com/busin...834/story.html

[caltrane74]

Waiting for Manulife 2......

[Coldrsx]

Aren't we all... curious to see who might be 1st out of the gate:

1. Qualico with Stationlands 2
2. Katz with the 1st arena office tower
3. Manu 2 (AIMCO/Alasco)
4. Melcor on Jasper Avenue
5. GE with a JV project of some sort
6. Procura
7. Ironwood has a 16 storey strata tower right downtown that is approved I believe.

[240glt]

Originally Posted by Coldrsx

Aren't we all... curious to see who might be 1st out of the gate:

1. Qualico with Stationlands 2
2. Katz with the 1st arena office tower
3. Manu 2 (AIMCO/Alasco)
4. Melcor on Jasper Avenue
5. GE with a JV project of some sort
6. Procura
7. Ironwood has a 16 storey strata tower right downtown that is approved I believe.

"102 Street Centre" has the best chance. Qualico is still sitting on +/- 200,000sf and aren't budging, Katz... well you "arena district" dreamers can just keep dreaming about that one for the next 10 years, Melcor.. nope. Procura... nope.

Ironwood might happen but it's a different market.

No one's doing anything until the vacancy rate goes lower than 4%, and lease rates are hitting $40, unless some big player comes to market.

There are a ton of RFP's out there right now though. probably for another 100k s.f. anyways.

[caltrane74]

So what about Manulife?

Where are they at? - How much booked in, how much left to go?

[240glt]

^ Manulife 2 is now being referred to as 102 Street Centre, as Manulife no longer has any interest in the property

[Jeff]

finally get some good news from the 'peg:
http://www.winnipegfreepress.com/bus...159534585.html

[Doug]

http://www.calgaryherald.com/busines...611/story.html


Demand for Calgary office space outpacing supply
Trend to persist into 2013
By Mario Toneguzzi, Calgary Herald July 12, 2012


Calgary downtown office space remains in high demand

CALGARY — Demand for high-quality commercial office space continues to outpace supply in Calgary, says a report released Thursday by TD Economics.

The report said the trend will persist into 2013 as there are only a handful of office projects currently under construction in the city.

It said about 40 per cent of the world’s publicly-traded energy companies have their headquarters set up in Calgary and about two-thirds of the downtown office space is occupied by energy firms.

“With crude oil prices staying firm throughout much of last year, all property classes recorded an improvement in conditions and higher transaction volumes,” said TD Economics. “Each class was also benefiting from the cyclical rebound in economic and employment growth that ensued following the recession.”

It said lower office vacancy trends have been noted at a time when absorption in square feet comes in close to two million on an annual basis. There has also been a shift to quality – at the end of 2011, the vacancy rate for Class AAA properties sat at just 0.2 per cent.

“Calgary has created 44,000 net new jobs since January 2010, one of the best employment showings in Canada,” said the report. “The labour climate serves as a good indicator of office demand and helps explain why levels are robust.”


mtoneguzzi@calgaryherald.com

© Copyright (c) The Calgary Herald

[Surrealplaces]

I don't know if this has been mentioned already, but Calgary's City Centre tower has recently started construction.

[caltrane74]

Originally Posted by Surrealplaces

I don't know if this has been mentioned already, but Calgary's City Centre tower has recently started construction.

Oh, you think you got exciting news?

I have some exciting news as well...

Last weekend, I saw hoarding going up around the Bay Adelaide courtyard. - Although I don't see any serious work beginning until the fall, this might just be site prep.

[cjbs1]

Construction of Downtown Montreal Office Tower to Commence as Cadillac Fairview and Deloitte Sign Lease Agreement
Twenty-Six Storey Deloitte Tower Marks the First Phase of Bell Centre Area Development

MONTREAL, QUEBEC, Jul 13, 2012 (MARKETWIRE via COMTEX)


The Cadillac Fairview Corporation Limited today announced the commencement of construction of a 26-storey office tower in downtown Montreal, with the signing of a long-term lease agreement with professional services firm Deloitte as the anchor tenant. The new Deloitte Tower represents the first stage of a comprehensive, multi-year redevelopment of lands surrounding the Bell Centre.

Deloitte will occupy 160,000 square feet of the 514,000-square-foot project, which will be home to premium office space, retail shops and approximately 225 parking spots. The one-acre site is currently occupied by a vacant, seven-storey office building.

"Montreal is ready for a new, first class landmark office building and we're proud to play a major role in revitalizing this prime location in the downtown," said Sal Iacono, Senior Vice President, Development and Portfolio Management, Eastern Canada for Cadillac Fairview. "We're especially pleased to have Deloitte on board as the anchor tenant in this exciting development, the first major privately funded office tower to be built in this city since the early 1990s."

Frank Vettese, new Managing Partner and Chief Executive of Deloitte Canada, said "This is a truly exciting project for the people of Deloitte. It is a transformational project within the city of Montreal that will allow us to create the workplace of the future. This innovative workplace will inspire collaboration and teamwork, as well as focus on bringing the next evolution of Deloitte's services to the marketplace. It will become a destination for our people and our clients. It is also in keeping with our commitment to sustainability and our objectives around corporate responsibility."

Cadillac Fairview acquired Windsor Station and its surrounding lands, known as the Windsor Block, in 2007. The lands can accommodate several million square feet of mixed-use development, including commercial and office space, a hotel and condominium towers. The Deloitte Tower will be located between the heritage-designated Windsor Station and the Bell Centre.

The office complex will offer a central location and optimal accessibility to tenants through commuter rail and Metro station connections, Montreal's underground network via Windsor Station, and vehicular access via St. Antoine Street and ramps to and from Autoroutes 720 and 10.

"The Deloitte Tower will be unique among Montreal's office towers because of its location and incredible access and connectivity," said Wayne Barwise, Executive Vice President, Development, Cadillac Fairview. "This project also marks the first phase of a multi-year redevelopment of this area which involves a convergence of commerce, sports, heritage and entertainment."

Consistent with Cadillac Fairview's commitment to sustainability, the Deloitte Tower will be built to LEED(R) Platinum certification, making it the first major office project in Montreal to achieve this level of certification.

Additional features of the Deloitte Tower include a signature, 32-foot-high lobby facing the historic Windsor Court; an outdoor Courtyard complete with a skating rink, public seating and park area. In addition, the Bush shed, a heritage-designated remnant of Windsor Station's original rail platforms, will be incorporated into the window line of the courtyard-level lobby.

Construction is set to begin October 2012 and be completed by June 2015 through a joint venture between PCL Constructors and Construction C.A.L.

Source: http://www.marketwatch.com/story/con...ent-2012-07-13

[Policy Wonk]

Originally Posted by Doug

http://www.calgaryherald.com/busines...611/story.html


Demand for Calgary office space outpacing supply
Trend to persist into 2013
By Mario Toneguzzi, Calgary Herald July 12, 2012


Calgary downtown office space remains in high demand

CALGARY — Demand for high-quality commercial office space continues to outpace supply in Calgary, says a report released Thursday by TD Economics.

We're getting cold calls pretty regularly from realtors asking if we are interesting in subleasing space...