Quote:
Originally Posted by Boris2k7
As geotag alluded to previously, one of the problems keeping Calgary from attracting more companies has been that O&G companies shot the cost of rents and labour through the roof. On the other hand we do have a talented workforce, but nobody needs a bunch of petroleum engineers (I still can't believe they offer courses for these at our schools). And of course Calgary has a ways to go in attracting creative industries -- the culture is not there yet.
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There is a very long history of companies who have been forced out of downtown due to rising costs, moved back in a previous bust, and then were kicked out again. Many of these firms are extremely leery of a temporary short term move back only to have to relocate again once energy firms start driving the price up again.
Moving an entire office can be a hugely disruptive event that has the potential to be highly damaging to morale as people need to figure out an entire new schedule and route and system to get into work, especially if it involves negotiating downtown traffic.
Much of the vacancy in the downtown core right now can be attributed to the ghosts of Christmas past coming back to haunt downtown landlords who valued absolute dollar gains over having a diversified portfolio of commercial real estate tenants.
I really wish people would stop the pity party for those poor downtown empty office towers. If the price comes down, and companies can sign on long term lease agreements at reasonable prices that make sense for industries outside oil and gas, they will be filled. Commercial landlords don't need anyone's pity.