Quote:
Originally Posted by scrolling
Surprising statement considering the vacancy rate for downtown and suburban office space is so high.
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It would seem that way, but there's not necessarily a direct correlation.
I don't know who the interest in the office space is coming from, but say it's a relatively stable, long-standing corporate tenant in Saskatoon who see it as a one-time opportunity to secure signature riverfront office space and for whom it simply means they're leaving their existing office space behind. In this instance, it's the existing, less current buildings that hurt more because of the vacancy rate as the new building fills with established tenants relocating. Where we have a "signature" office opportunity, the citywide vacancy rate might not matter as much - as the type of tenants it attracts aren't looking to fill the vacant odds and ends of the market anyway, they're looking to relocate to something new and shiny. (It's important to note that the old Police HQ is skewing the vacancy rate presently - it's not exactly move-in ready office space waiting for a tenant.)
Further to that, Triovest is an established office player with considerable access to capital. An office tower could take 3-4 years before it's ready for occupancy. If they secure a partial tenant and are willing to proceed with the rest on spec with a long term confidence in Saskatoon and that the timing may be just right with an upswing in the economy upon completion of the building.
Pure speculation on my part, but the quote from the Greystone rep. who singled out the office component is interesting.
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