J pold’s Commercial Real Estate Thread

[J pold]

Hey CP I’m excited to be teaming up with Travis in providing the CalgaryPuck community with real estate information and services. I’m a commercial real estate broker, so I service a totally separate market from Travis. Put simply I work with companies to help them find office space.

What this thread offers to your average CP user:

Detailed information and updates on a number of new developments around the city as listed in this (http://forumcdn.calgarypuck.com/showthread.php?t=113395)thread
What major tenants may be planning big moves as discussed in this (http://forum.calgarypuck.com/showthread.php?t=120885) and this (http://forum.calgarypuck.com/showthread.php?t=121376) thread
Market information (i.e. what does it actually cost to move into a fancy new building downtown)
Vacancy rates and overall trends in Calgary’s commercial real estate market


Generally solid market information is hoarded by landlords and brokers with tenants left in the dark and paying higher rents then they should. The residential real estate market has become more open with the advent of the internet but commercial is still mostly closed and controlled. I believe that information should be open and accessible to everyone and so I’m here to answer any questions you might have.

Obviously a part of this thread is me promoting my business and I would be thrilled to work with anyone who is part of the CP community. So if your company or anyone you know is in the market for new office space, has a lease coming up for renewal, need advice on lease documents, or are just looking for market information feel free to contact me and I’d be happy to help.

More about me, my team, and what we do can be found here (https://www.dropbox.com/s/shbfglxu1zh6wo7/Colliers_Tenant_Services_Team%20-%20Remington.pdf) and here. (https://www.dropbox.com/s/wfffh1oidvlbd36/Why%20Use%20A%20Colliers%20Representative.pdf)

Cody Watson
Associate | Office Leasing
Dir +1 403 571 8760
Main +1 403 266 5544
Cody.Watson@collierscalgary.com

[J pold]

I thought I’d start by sharing some material that our clients generally find interesting.

The Skyline Review is an analysis of Calgary’s downtown office towers visually representing all current headlease and sublease space available.

Class "AA" Buildings

http://i.imgur.com/6GY5g4C.jpg
http://i.imgur.com/ZoUpMds.png

Class "A" Buildings

http://i.imgur.com/aV5mUIo.png
http://i.imgur.com/TSmixuf.png
http://i.imgur.com/Tw8gBvN.png

Class "B" Buildings

http://i.imgur.com/IZWthX1.png
http://i.imgur.com/OmXwcte.png

[J pold]

I’ll go over some of are higher profile listing:

20/20 4th Street

Development Highlights
> Landlord: Strategic Group
> “AA” class mixed-use development located on 4th Street and 20th Avenue SW
> 1.4 kms driving distance to the downtown core; 1.3 kms to the Victoria Park Stampede LRT Station
> 15 minute walk to the downtown core (+15 connection) and the LRT line
> Main floor retail will feature boutique shops, services and high-end restaurants
> The building will feature on-site amenities such as a fitness facility including showers and locker rooms as well as bikestorage.
> Slated for completion in Q4 2013

Office Leasing Details
Available Area: From 3,000 - 50,326 sq. ft of contiguous space
Average Floorplate: 23,000 sq. ft.
Rental Rates: Market
Tenant Improvement Allowance: Negotiable, “Turnkey Office Packages” available
Operating Expenses $14.99 (est. 2013)
Term: 5 - 10+ years
Parking: 1:500 sq. ft.

A few renderings:

http://i.imgur.com/iYOcGKI.png

http://i.imgur.com/1dANd1P.png

http://i.imgur.com/o3JcGVY.png

We just completed a deal with an Anchor Tenant (Hopewell Development Corp) who will be moving from their current location in 1122 4th Street SW.

Visual stacking plan:

http://i.imgur.com/GjoERht.png

Most people want to know what’s going on in the retail portion. Right now we are in talks with a number of groups but for confidentiality reasons I can’t say who. I can tell you that there will be a major restaurant in the SW corner of the main floor and we have a deal done with a TD Bank on the NW corner.

Any other questions let me know.

[J pold]

Place 10 recently got it's DP approved. I'm a bit skeptical about their +15 access into Gulf Canada Square. I'm not sure the city would want a +15 south of, or that close to the tracks but Centron has assured us they will get the go ahead.

Leasing information below:

Place 10

Address
10th Avenue SW between 4th and 5th Streets.

Building Size (Office Component in SF)
East Tower: 306,900
West Tower: 287,450

Building Description and Comments: Phased, two tower development. 14 floors each. East and West tower are +15 connected with potential +15 connection to Centennial Parkade. Designed to LEED® Silver Certification.


Estimated Pre-Lease Threshold (SF): On Spec
Typical Floorplate (SF) 23,000
Projected Parking Ratio 1:1,460
Projected Rental Rate (PSF / Annually) $35.00 to $38.00
Estimated Tenant Improvement Allowance $40.00
Estimated Operating Costs and Taxes (PSF) $15.00
Project Status Development permit in place.
Pre-Leasing
0% Leased
Earliest Completion Date for Business Occupancy: Q3 2016
Estimated Fixturing Date: Q3 2016
Ownership Structure: Centron


Renderings:

http://i.imgur.com/sXKCoie.png
http://i.imgur.com/U9NCwo8.png

[Bigtime]

I had no idea that City Centre is only 17% leased, I'm actually quite surprised by that.

[Bigtime]

Place 10 recently got it's DP approved. I'm a bit skeptical about their +15 access into Gulf Canada Square. I'm not sure the city would want a +15 south of, or that close to the tracks but Centron has assured us they will get the go ahead.

I wonder about this too. I understand that the +15 network is part of downtown Calgary, but I get nervous with it coming into the Beltline. Much prefer to see people out on the sidewalks and it helps keep the ground floor business' viable.

I would be ok with the +15 network hooking up to these buildings on the north side of 10th avenue, but the network goes no further south from there.

[bizaro86]

I'm curious the difference between AA and A office space, is there some sort of "official" dividing line in relation to ceiling height/amenities or something? Some of the A buildings I would have thought would be considered top tier.

[ranchlandsselling]

I'm curious the difference between AA and A office space, is there some sort of "official" dividing line in relation to ceiling height/amenities or something? Some of the A buildings I would have thought would be considered top tier.

Jpold might have a different response as colliers probably has some stats that justify theire classifications but the opinion from my office it all depends on who's doing the classification. CBRE, Colliers, Avison Young, Altus. When writing up proposals for the Bow and Centennial we had appraisers calling them AAA buildings, research departments calling them AA's.

It's also a very relative measure and basically (for us) established from the best building down and taking into account (with a grain of salt) the appraisers comments. The best/most new large office buildings will obviously be AA or even AAA and from that you can compare on a downward scale.

I've seen some appraisers call buildings A that were clearly B buildings and from a financing perpective I'd never submit a proposal to our head office calling Fifth and Fifth, Chevron Plaza, Nexen, Shaw Court, Watermark (might improve as development continues) and some of those A listed buildings as A's. If it's not on the +15 and in the west downtown classification it's pretty much a B for us. But, from a financing perspective you're always on the conservative side - from a broker perspective and apprasier everything is AAAAAA!!!!
Just teasing!

[fundmark19]

Woo +15 access to 10th ave now I won't have to walk that extra block in the cold to get to downtown. If only we could get it all the way to MEC

[ranchlandsselling]

I wonder about this too. I understand that the +15 network is part of downtown Calgary, but I get nervous with it coming into the Beltline. Much prefer to see people out on the sidewalks and it helps keep the ground floor business' viable.

I would be ok with the +15 network hooking up to these buildings on the north side of 10th avenue, but the network goes no further south from there.

How would that even work? Connect diagonally NE/SW across 4th and 10th to the GC Sqaure Parkade? They need a +15 connection going to something/anything at the west end of GC Square, what a bunch of awful dead space at that end.

[J pold]

I had no idea that City Centre is only 17% leased, I'm actually quite surprised by that.
That is from our September Skyline (I'm working on getting the November one up) but since then Walton International has taken 3 floors and Inter Pipeline, who has top 6 floors just took one more and put a ROFO on another, and they will likely take it when it's all said and done. Currently it's about 28% leased.

[J pold]

How would that even work? Connect diagonally NE/SW across 4th and 10th to the GC Sqaure Parkade? They need a +15 connection going to something/anything at the west end of GC Square, what a bunch of awful dead space at that end.
Agreed. Centron told us at are their project announcement that the +15 would potentially attach in the west end of GCS. Again not sure how that would happen but you can see one in the rendering.

[J pold]

Had some interesting things happen around the market last week.

Looks like Westbrook Urban Centre now has Cours Entertainment as an anchor tenant and they have been given naming rights and is now going to be called Corus Block.

Renderings:
http://i.imgur.com/2Bm7gG7.png
http://i.imgur.com/eIeBNY1.png

Location and Info:
http://i.imgur.com/5A4t7eG.png

[J pold]

Another announcement was Q Block a s a 130,000 square foot mixed-use complex located in the East Village. I'm not sure if the office portion of the development will be driven by the retail/residential portion. I find the floor plates to be kind of strange/inefficient but there is an appetite for a more funky/trendy user.

Renderings:
http://i.imgur.com/cUa1cir.png
http://i.imgur.com/Al3BmyO.png
http://i.imgur.com/jFaBHVy.png


Concept Floor-plate:
http://i.imgur.com/5mzC4MI.png

Development info:
http://i.imgur.com/ELVwpEk.png

[J pold]

Property I thought I'd feature today is the Biscuit Block redevelopment. It’s being listed by CBRE and they are saying that it will be ready for Tenant Fixturing by the end of the month.

Leasing information below:

The Biscuit Block

Address
438 11 Avenue SE

Building Size (Office Component in SF)
54,073

Building Description and Comments: Six storey character office redevelopment

Estimated Pre-Lease Threshold (SF): On Spec
Typical Floorplate (SF) 7,071SF
Parking Ratio: 5 stalls per floor
Projected Rental Rate (PSF / Annually) $28.00
Estimated Tenant Improvement Allowance $30.00
Estimated Operating Costs and Taxes (PSF) $25.00
Project Status Development: Under Construction.
Pre-Leasing
50% Leased
Earliest Completion Date for Business Occupancy: Q1 2014
Estimated Fixturing Date: Q4 2014
Ownership Structure: Royop Development Corporation


Renderings:
http://i.imgur.com/YiIkW7b.png
http://i.imgur.com/H4LLYaY.png
http://i.imgur.com/sn9eqV2.png
http://i.imgur.com/au4mjBY.png

Concept Floor plans
http://i.imgur.com/XF2iwmB.png
http://i.imgur.com/rgQHBDH.png

If you want anymore info feel free to PM me.

[Travis Munroe]

Thanks to J Pold for adding a new dimension to the CP community as well as the side communities involving sponsors. Personally, I love it and would love to see further sponsors step up and further develop the community we have.

[J pold]

New sublease hit the market Yesterday. Wood Group PSN is combining with IMV projects to be rebranded as Wood Group Mustang. As a result some of the Wood Group Space in IBM Corporate Park is being subleased through Cresa Partners. Full floor for about 22,370sq ft.

Details:

Sublandlord: Wood Group PSN - Western Canada Inc.
Premises: 4th Floor: 22,370 sf
Availability: Immediately
Term Expiry: March 31, 2018
Tenant Improvements: As-is
Operating Costs & Taxes: $18.92 per sf (est. 2013)
Parking: 11 unreserved underground parking spaces


Floorplan and Rendering:
http://i.imgur.com/V01eOwR.png
http://i.imgur.com/jc23MXr.png

[J pold]

Featuring one of our listing down in Seton. Brand new medical development directly across from the new south hospital. Landlord is Brookfield Residential so it will be an A class project the whole way. Currently we have it about 44% leased with two anchor tenants, but Brookfield is looking to cross the 50% lease threshold before they move forward with development.

PM me for more details.

Property Details:


Available Premises: East Building: 41,495 sq. ft. - Conditionally Leased
West Building: 58,489 sq. ft.
Basic Rent: Market Rates
Operating Costs: TBD
Tenant Improvements: Negotiable
Term: 5 - 10 Years +
Parking: 1:269 per sq. ft.
Available for Tenant Fixturing : Q2 2015


Renderings:
http://i.imgur.com/i7dXXze.png
http://i.imgur.com/JhDq0bV.pnghttp://i.imgur.com/NSRbecJ.png

Maps:
http://i.imgur.com/RrowcUr.png
http://i.imgur.com/MdS96j7.png

[J pold]

Any update who the tenants are for that Westbrook building on 17th and 33rd? If there is a jugo juice in there, I'm going to blow it up.
Corus is the anchor tenant but not too sure on the main floor retail side of things. It looks like the east corner has been leased. When we originally pitched on getting the listing the owners wanted a high end grocery store and that's what that pocket looks like. I'd imagine you'll see a coffee shop and maybe a yoga studio on the main as well.

You have Momentum Health on the 2nd floor along with some smaller service companies. You'll probably see a dentist setup shop in the building at some point.

[J pold]

Had some space come back in Hanson Square. We had it fully leased last year but one of the tenants isn't doing so hot. Specs are below:

Hanson Square


Available Area: Third Floor: 7,692 sq. ft.
Term: 5-10 years
Net Rents: Market
Operating Costs: Estimated at $16.00 psf (2013 Budget)
Cash Allowance: Negotiable
Parking Ratio: Allocated at 1:540 sq. ft.
Available: Immediately
Ceiling Heights: 10.0’ to T-bar ceiling


More Info:
http://i.imgur.com/KN4eXF2.png
http://i.imgur.com/QRHJpwd.png
http://i.imgur.com/TRfl95S.png

[J pold]

Article in today's Herald about Quarry Park. Being a suburban broker we are very in touch with what's going on there. Feel free to ask me any questions you have.

http://www.calgaryherald.com/business/real-estate/Quarry+Park+condo+development+gaining+momentum/9210929/story.html

[J pold]

Jacobs Canada came out to the market with a 33,064 sf sublease this morning through Cushman & Wakefield. The space has never been occupied so clearly Jacobs over estimated their growth plans and now have this Lease on their books. You now have major sublease space on the market from Worley Parsons, Woodgroup Mustang, and Jacobs Canada with a number of other smaller engineering groups with sublease space on the market.

The downtown has seen some slowdown with their vacancy rate ticking upwards over the last 3 quarters, but the suburban market has remained relatively unchanged. With these new vacancies hitting the market over the past weeks it looks that is going to change.

PROPERTY FACTS

LOCATION Southeast
TOTAL BUILDING SIZE 171,128 sf
NUMBER OF FLOORS 3
YEAR BUILT 2012
PARKING COSTS 49 stalls at no charge
43 stalls at $155.00 (fixed 5 years)
BUILDING CLASS A

LEASE PARTICULARS

AREA AVAILABLE Suite 350 – 33,064 sf
RENTAL RATE $26.50/sf – 5 years
$28.50/sf – 5 years
OP COSTS $11.65/sf (Est.)
POSSESSION Immediately
TERM to December 31, 2023
INDUCEMENTS Virgin space – $40.00/sf


Rendering and Floorplan:
http://i.imgur.com/6MbYanE.png
http://i.imgur.com/oC7r2Ca.png

[ranchlandsselling]

Jacobs Canada came out to the market with a 33,064 sf sublease this morning through Cushman & Wakefield. The space has never been occupied so clearly Jacobs over estimated their growth plans and now have this Lease on their books. You now have major sublease space on the market from Worley Parsons, Woodgroup Mustang, and Jacobs Canada with a number of other smaller engineering groups with sublease space on the market.

The downtown has seen some slowdown with their vacancy rate ticking upwards over the last 3 quarters, but the suburban market has remained relatively unchanged. With these new vacancies hitting the market over the past weeks it looks that is going to change.


PROPERTY FACTS

LOCATION Southeast
TOTAL BUILDING SIZE 171,128 sf
NUMBER OF FLOORS 3
YEAR BUILT 2012
PARKING COSTS 49 stalls at no charge
43 stalls at $155.00 (fixed 5 years)
BUILDING CLASS A
LEASE PARTICULARS

AREA AVAILABLE Suite 350 – 33,064 sf
RENTAL RATE $26.50/sf – 5 years
$28.50/sf – 5 years
OP COSTS $11.65/sf (Est.)
POSSESSION Immediately
TERM to December 31, 2023
INDUCEMENTS Virgin space – $40.00/sf

Rendering and Floorplan:
http://i.imgur.com/6MbYanE.png
http://i.imgur.com/oC7r2Ca.png

Maybe a comment on how much of their space that is? Gives a bit of perspective :)

Are the others downtown space? Or somewhere else in the burbs? Didn't think they were at Quarry Park.

How's the Atco park doing?

[J pold]

Maybe a comment on how much of their space that is? Gives a bit of perspective :)

Are the others downtown space? Or somewhere else in the burbs? Didn't think they were at Quarry Park.

How's the Atco park doing?
In the grand scheme of things not that much. I don't believe they have any offices downtown, and if they do they are likely quite small. Their Calgary head office is located in Quarry Park and is roughly 370,000sf. They also have another 20,000sf of space in the Cardel Building across the street. So the 33,000sf is less then 10% of their position in Quarry, but interesting to see that space has never been occupied and clearly Jacobs is falling short of their growth expectations.

To give a larger context to QP Jacobs got very lucky with their suburban office move. Their head office is now located directly across from the new Imperial Oil Office Campus. Remington's next development will be Quarry Crossing (I'll post info later today) and is slated to be completed by 2015. There are rumors that other major engineering firms (AMEC, Worley, Focus, etc) are taking a long look at relocating to QP to get exposure to Imperial Oil.

[KTrain]

Where's the best place to search online for available commercial/office spaces in Calgary? icx.ca seems to have a really limited selection.

[J pold]

Where's the best place to search online for available commercial/office spaces in Calgary? icx.ca seems to have a really limited selection.
There really isn't a place where this is available yet and icx.ca is extremely limited. As I said information is largely controlled by brokers and landlords at this point. Part of this thread is being open with CP and the internet at large about our information.

We have a full database of every commercial listing in Calgary. If you're looking for space or just want to what's out there PM me and I can provide at list for you.

[J pold]

Info on Remington's latest development in Quarry Park:

QUARRY CROSSING

BUILDING A: AVAILABLE 133,843 sq. ft
BUILDING B: AVAILABLE 161,926 sq. ft.

LEASED: 26,744 in Building A

BUILDING A OCCUPANCY: June 2015
BUILDING B OCCUPANCY: October 2015

CONSTRUCTION STATUS: Under Construction

HIGHLIGHTS

50 Quarry Park Blv SE, Calgary, AB
Excellent access/egress via 18th Street S.E. and 24th Street S.E. with connections to Glenmore Trail and Deerfoot Trail
Numerous amenities including The Market at Quarry Park providing retail services, health facilities, large park spaces and immediately adjacent to the Bow River and its pathway system

SERVICES

City of Calgary Transit via routes 24, 102, 103, 110, 117, 133, 136, 151 and BRT #302
Future S.E.LRT alignment on 24th Street

RATES

$26.95 / sq. ft.
40.00 / sq. ft. TIA after T-Bar, HVAC & Lighting

OPERATING COSTS & TAXES

Budgeted for 2015 at $15.24 / sq. ft.


RENDERING & SITE PLAN:
http://i.imgur.com/dxf9b7O.png
http://i.imgur.com/bxhWrlY.png
http://i.imgur.com/bx1MP84.png
http://i.imgur.com/3eMxWfK.png

[Violator]

Article in today's Herald about Quarry Park. Being a suburban broker we are very in touch with what's going on there. Feel free to ask me any questions you have.

http://www.calgaryherald.com/business/real-estate/Quarry+Park+condo+development+gaining+momentum/9210929/story.html

The laurier the rental property in that picture looks really fugly

[J pold]

The laurier the rental property in that picture looks really fugly
For sure. Remington are commercial developers so there is still some growing pains for their first time residential projects. I still believe the project will be a success, and A class the whole way.

[Rerun]

Because of your insulting attitude and comments on here to many posters, I would never recommend the company I work for, buy or lease commercial real estate from you.... and we are looking by the way.

I'm surprised Realtor 1 agreed to team up with you.

[J pold]

Because of your insulting attitude and comments on here to many posters, I would never recommend the company I work for, buy or lease commercial real estate from you.... and we are looking by the way.

I'm surprised Realtor 1 agreed to team up with you.
I’ve been a regular member of CP for nearly 10 years and in that period of time I am sure I have said and done things that have insulted posters. If that is the case I certainly apologize for that and will be more diligent in my conduct on the site going forward. That being said my personal past on the site is not a reflection of my professional skill set, and certainly not a reflection of Colliers services. If you choose not to use me (or Colliers) that is certainly your choice, but to dismiss my services when you have not even used them is unfair IMO.

Best of luck to you and your company with your commercial real estate going forward.

[ranchlandsselling]

Because of your insulting attitude and comments on here to many posters, I would never recommend the company I work for, buy or lease commercial real estate from you.... and we are looking by the way.

I'm surprised Realtor 1 agreed to team up with you.

Pretty weak post and totally unnecessary! I'm not sure why you'd come into a forum and find a thread just to tell someone what you did. If you really felt you needed to do that probably best to consider sending a PM.

Honestly, I think there's a difference between posting in game threads, off topic, and then a work related forum. Things can get pretty dumb/ugly in those other forums and most posters can get pretty silly at times. If you've fairly portrayed jpold in your comments then you're just as bad for what you've just posted and how you've gone about doing it. If someone is really that bad maybe consider leading by example and taking the highroad vs. a public shaming.

[J pold]

Interesting buzz around the market this week is Husky announcing their long term plans. Their leases (roughly a million square feet) at Western Canadian Place roll in 2018 and they have been in market for nearly all of this year putting out RFPs to nearly every major developer. Our downtown group at Colliers is working with them but I can honestly say that I have no idea where they'll end up at this point. Their current landlord ((British Columbia Investment Management Corporation (bcIMC)) will have to be extremely aggressive on their renewal terms as they cannot afford to lose that tenant.

Their timeline to announce is by the end of the year so could be any day now.

[Bigtime]

Yeah there have been lots of rumours floating about with regards to Husky, even some talk of them potentially looking for a flashy new tower (and that ties in with the rumours of this "Gateway" project that could be taller than Brookfield Place).

[ranchlandsselling]

Interesting.

Any idea who bought the space on 6th ave and 4th street yet? The Imperial owned land that was sold to some unknown?

Man, Western Canadian Place could be tough space to fill, haven't been through it recently and can't recall what sort of shape it's in, but could be a pretty big vacancy. I'd prefer if BCIMC just won them over with a good deal and they stayed put. This current development cycle could do with a lull.

Surprised about Husky though, aren't they notoriously cheap? I'd think I'd be less surprised to see them go into suburban office than a new build.

[Bigtime]

Interesting.

Any idea who bought the space on 6th ave and 4th street yet? The Imperial owned land that was sold to some unknown?

Man, Western Canadian Place could be tough space to fill, haven't been through it recently and can't recall what sort of shape it's in, but could be a pretty big vacancy. I'd prefer if BCIMC just won them over with a good deal and they stayed put. This current development cycle could do with a lull.

Surprised about Husky though, aren't they notoriously cheap? I'd think I'd be less surprised to see them go into suburban office than a new build.

I know, but cannot say who at this time.

[ranchlandsselling]

I know, but cannot say who at this time.

Any idea when it will be divulged? I need to do some digging.

[J pold]

Interesting.

Any idea who bought the space on 6th ave and 4th street yet? The Imperial owned land that was sold to some unknown?

Man, Western Canadian Place could be tough space to fill, haven't been through it recently and can't recall what sort of shape it's in, but could be a pretty big vacancy. I'd prefer if BCIMC just won them over with a good deal and they stayed put. This current development cycle could do with a lull.

Surprised about Husky though, aren't they notoriously cheap? I'd think I'd be less surprised to see them go into suburban office than a new build.
I've heard Oxford was in the biding but now those rumors have gone cold.

My guts says that bcIMC will put a deal in front of Husky that is too good to walk away from and they renew. I've heard they are offering $100/SF TIA with an extremely discounted rate. With all the backfill space coming to the market in between 2016-2018 they cannot afford to have that much exposure.

From a suburban perspective I know Remington put an RFP in front of them for Quarry Park but ultimately I don't see them leaving the downtown.

[Bigtime]

Any idea when it will be divulged? I need to do some digging.

No idea unfortunately.

[shermanator]

Random building nerd question alert. At the intersection of Elbow and 50th they have signs on the SE and SW corners advertising new mixed use (office / retail) development. I've known of the building on the SW corner, but is the building on the SE corner new, or just advertising the one on the SW corner?

[J pold]

Random building nerd question alert. At the intersection of Elbow and 50th they have signs on the SE and SW corners advertising new mixed use (office / retail) development. I've known of the building on the SW corner, but is the building on the SE corner new, or just advertising the one on the SW corner?
I think you’re referring to Opus’s Britannia Crossing Development. It’s currently under construction and listed by Barclay Street Real Estate. They have had some challenges leasing the office portion so they announced a incentive program for brokers back in October. The next 12,000sq ft leased would get a equivalent portion of the Opus’s Flames season tickets, pretty sweet deal.

Anyway lease info and renderings below:

LEASE & BUILDING DETAILS


Building Size: 66,663 sq ft total rentable space
Total Office Space 53,896 sq ft
Total Retail Space: 12,767 sq ft (Main Floor)
Available Retail Space: 3,640 sq ft
Available Office Space: 42,846 sq ft
Occupancy: Summer 2014
Building Uses: Retail/Office
Estimated OP Costs: $10.85 (2014)
Parking Ratio: 1.59/1000 ft2
Offsite Parking: Available
Annual Net Rent: Market
Inducements: Negotiable
Other: Turnkey Available


http://i.imgur.com/XLkiNFr.png
http://i.imgur.com/4AFaCjW.pnghttp://i.imgur.com/jNx6L1c.png

[Travis Munroe]

Im going to the currie barracks open house tomorrow and have very little knowledge of what the plan is however I have heard up to 4,000 residential condominium units in mid to high with plenty of commercial/retail.
Anyone have any information?

[J pold]

Im going to the currie barracks open house tomorrow and have very little knowledge of what the plan is however I have heard up to 4,000 residential condominium units in mid to high with plenty of commercial/retail.
Anyone have any information?
I know more about the commercial end of this project. Colliers investment sales team identified the JV partner (Embassy Bosa Inc.) to partner with Canada Lands Company for the redevelopment. They are still deciding what they want to do on the commercial end but I suspect it will be roughly 200,000 to 300,000SF of office space over 2-3 mixed use buildings. My team put a lot of leg work in assisting our investment sales team so we will be granted the listing when things start to materialize. You'll probably start seeing shovels in the ground in late 2015 to early 2016.

More information here (http://www.calgaryherald.com/business/Town+centre+concept+planned+Currie+Barracks/9110227/story.html), and here (http://www.collierscalgary.net/currie_barracks/CLC_CurrieBarracksBrochure.pdf).

[Violator]

Just noticed a commercial building sign up on McLeod were the Swiss chalet is.

[ranchlandsselling]

I know more about the commercial end of this project. Colliers investment sales team identified the JV partner (Embassy Bosa Inc.) to partner with Canada Lands Company for the redevelopment. They are still deciding what they want to do on the commercial end but I suspect it will be roughly 200,000 to 300,000SF of office space over 2-3 mixed use buildings. My team put a lot of leg work in assisting our investment sales team so we will be granted the listing when things start to materialize. You'll probably start seeing shovels in the ground in late 2015 to early 2016.

More information here (http://www.calgaryherald.com/business/Town+centre+concept+planned+Currie+Barracks/9110227/story.html), and here (http://www.collierscalgary.net/currie_barracks/CLC_CurrieBarracksBrochure.pdf).
I know the brewery was allowed to stay until early 2015 which lines up with that time line.
Whats happened to Stampede Station? They were trying to lease space in 08 right before the world ended, I remember seeing a financing package and then "poof it was gone".

same thing happened with that best buy on 17th, except I thought that was a bad idea both then and now

[J pold]

Just noticed a commercial building sign up on McLeod were the Swiss chalet is.
That's another Opus Development - Hanson Court

Building is subject to preleasing and they'll want to hit a 50% threshold before they put shovels in the ground. It's on the back burner for Opus at the moment with Britannia Crossing being their main focus.

Some more information is: here (http://www.opuscorp.ca/projects/developmentleasing/hansoncommercial.cfm##)

[J pold]

I know the brewery was allowed to stay until early 2015 which lines up with that time line.
Whats happened to Stampede Station? They were trying to lease space in 08 right before the world ended, I remember seeing a financing package and then "poof it was gone".

same thing happened with that best buy on 17th, except I thought that was a bad idea both then and now


Stampede Station Phase I is fully leased but currently has a 37,130sq ft sublease through Genivar.

Phase II is currently subject to preleasing (likely 50% threshold) and is being by listed by Colliers. The site is owned by WAM Development but there has been little interest in the site over the past couple of years. There is too much sublease availability and upcoming headlease space downtown to have a major tenant take a position there. I don’t see anything happening there for a couple of years.

Colliers marketing brochure is: here (http://www.collierscalgary.net/exclusivelistings/suburban/StampedeStationII.pdf)

The Best Buy is located in Hanson Square (another Colliers listing) which is owned by Western Securities (fully private Landlord backed by the wealthy O’Connor family). We listed the office portion which has done exceptionally well but the Best Buy has been struggling since day one. Doesn’t help that they spent something like $100/sq ft to building out the space, which was mostly sunk into the escalator and signage. They are on a longer term lease, untied to the tenant sales performance, and are paying a high rate so WS doesn’t care much. I also don't see them selling the building anytime soon.

We have had some space come back in the building which shows quite well - particulars are below:

Hanson Square


Available Area: Third Floor: 7,692 sq. ft.
Term: 5-10 years
Net Rents: Market
Operating Costs: Estimated at $16.00 psf (2013 Budget)
Cash Allowance: Negotiable
Parking Ratio: Allocated at 1:540 sq. ft.
Available: Immediately
Ceiling Heights: 10.0’ to T-bar ceiling


More Info:
http://i.imgur.com/KN4eXF2.png
http://i.imgur.com/QRHJpwd.png
http://i.imgur.com/TRfl95S.png

[Bigtime]

Any idea who bought the space on 6th ave and 4th street yet? The Imperial owned land that was sold to some unknown?

Well I just saw it posted on SSP so I believe I am safe to say who purchased that land.

Oxford bought it, and apparently for $/sqft rate of about $1000.

Edit: Title transferred for around $69M. Yowza!

[J pold]

Well I just saw it posted on SSP so I believe I am safe to say who purchased that land.

Oxford bought it, and apparently for $/sqft rate of about $1000.

Edit: Title transferred for around $69M. Yowza!
Yeah everyone figure it was Oxford because they were the only ones who could actually afford it. I was really hoping Remington was going to make a bid as part of the Imperial Oil deal. It would be really interesting to see what they could do with a downtown development.

[rotten42]

To pay that much makes you think that they have somebody already in mind for that property.

It won;t be Husky. They are staying put and doing a refit.

[ranchlandsselling]

To pay that much makes you think that they have somebody already in mind for that property.

It won't be Husky. They are staying put and doing a refit.

Hmmmm... A major development there still wouldn't be enough to improve +15 access from west downtown to the core. I hate the little jog that goes through Aquitaine, Chevron, Roslyn, etc.

Would also like to see Centennial bridged to the west more.

If you could do 5th and 5th, to the courthouse, to... I guess the new Manulife building, to EAP that might help. Obviously the courthouse would be a no go due to security though.

Hmmm.... Does that lot include the section on 5th ave too? Just trying to think about the floor plate size.

[ranchlandsselling]

Sounds like Husky is staying put, lease apparently done.

Also, apparently with the Imperial Land sale most of the offers were conditonal on getting Husky in there whereas Oxford just offered $10 million more without conditions.

[J pold]

Been away on holidays but will have more updates and information in the coming weeks. Appreciate all who continue to contribute.

[J pold]

Just working on creating some Q4 reports for 2014 but some preliminary numbers for those who are intersted:

DOWNTOWN:
Total Q4 2013 Occupied Space: 36,728,465
Total Q3 2013 Occupied Space: 37,495,089
Total Q4 2013 Absorption: -798,558
YTD ABSORPTION: -1,581,037
Vacancy Rate: 7.27%

[J pold]

Global Colliers Report | Q1 2014

25 Predictions for 2014: here (https://www.dropbox.com/s/4tvjo93qizrsexp/25%20Predictions.pdf)

[J pold]

Colliers Office Leasing Guide (http://issuu.com/colliers/docs/col_officeleasingguide_23022010_final/7?e=0)

[Muta]

To pay that much makes you think that they have somebody already in mind for that property.

It won;t be Husky. They are staying put and doing a refit.

They are. I worked heavily on one of the teams that was competing. Husky got a sweetheart of a deal with their current landlord. Oh well, upward and onward.

[J pold]

Morguard has some new information for their new development on 11th avenue, info below:

11th Avenue Place

Address
214 - 11th Avenue SW

Building Size (Office Component in SF)
184,781

Building Description and Comments: 11- storey office building with three floors of underground parking. Built to achieve LEED® Gold Certification (First in the Beltline District).


Estimated Pre-Lease Threshold (SF): 50%
Typical Floorplate (SF) 20,000
Projected Parking Ratio 1:1,567
Projected Rental Rate (PSF / Annually) $33.00 to $35.00
Estimated Tenant Improvement Allowance $35.00
Estimated Operating Costs and Taxes (PSF) $15.00
Project Status Under construction
Pre-Leasing
53% Leased
Earliest Completion Date for Business Occupancy: Q4 2014
Estimated Fixturing Date: Q3 2014
Ownership Structure: Morguard


Renderings:
http://arcestra.com/fileDl/fetchPublicFileLink.action?id=2318133136991810329&width=1024&height=768&mode=SHRINK
http://arcestra.com/fileDl/fetchPublicFileLink.action?id=8515093110355234196&width=1024&height=768&mode=SHRINK
http://arcestra.com/fileDl/fetchPublicFileLink.action?id=8165789324392037507&width=1024&height=768&mode=SHRINK
http://arcestra.com/fileDl/fetchPublicFileLink.action?id=6379008709197171033&width=1024&height=768&mode=SHRINK

Floor plans:

4th Floor Single Tenant Plan (http://arcestra.com/fileDl/fetchPublicFileLink.action?id=618791115367302316)

4th Floor Multitenant Plan (http://arcestra.com/fileDl/fetchPublicFileLink.action?id=7683182764193147587)

They even had a live consturction webcam: here (http://www.ibeamsystems.com/private/11thavenue/)

[J pold]

Pretty excited to be bringing a new sublet in the SMART Technologies Building to the market. We put a lot of work into getting the opportunity to work with one of Calgary’s largest technology firms and feel this sublet will be a real success.

PROPERTY HIGHLIGHTS


Available Premises 41,772 square feet
Availability 90-120 days notice
Op Costs $9.95 per square foot
Term January 1st, 2033
Rent Market Rates
Parking 20 underground stalls at $125.00 per month
Year constructed 2008


Full Marketing Brochure is here (http://www.collierscalgary.net/exclusivelistings/suburban/SMART_Technologies.pdf)


http://i.imgur.com/i34fkcx.png

[ranchlandsselling]

Pretty excited to be bringing a new sublet in the SMART Technologies Building to the market. We put a lot of work into getting the opportunity to work with one of Calgary’s largest technology firms and feel this sublet will be a real success.

PROPERTY HIGHLIGHTS


Available Premises 41,772 square feet
Availability 90-120 days notice
Op Costs $9.95 per square foot
Term January 1st, 2033
Rent Market Rates
Parking 20 underground stalls at $125.00 per month
Year constructed 2008

Full Marketing Brochure is here (http://www.collierscalgary.net/exclusivelistings/suburban/SMART_Technologies.pdf)


http://i.imgur.com/i34fkcx.png

So in the case of a sublet will the tenancy be subject to the same restrictions on occupancy and have to be considered "research park tenants?". I know there's some restrictive use covenants in there.

[J pold]

So in the case of a sublet will the tenancy be subject to the same restrictions on occupancy and have to be considered "research park tenants?". I know there's some restrictive use covenants in there.
Yes they would be. We approached the university committee and vetted the guidelines for approved tenancies. The tenant has to be research orientated in nature but their definition on what is “research oriented” is fairly loose. Effectively any tenant who could afford and would be interested in this type of space would likely be approved to enter the park.

[J pold]

Colliers Downtown group just released their Q4 2013 report. Thought some here might be interested, PM if you have any questions or want more information.

Downtown Office Market Balancing Act

The last year can be seen as a giant step towards a more balanced office market whereby
Landlords and Tenants negotiate from an equal footing. This represents a significant change
from 2010, 2011, and 2012 where the vacancy rate reached 3.53% in Q2 2012, its lowest
level since Q1 2008, where Landlords were able to secure tenancies at elevated rates with
minimal tenant inducements. With four consecutive quarters of negative absorption through
2013 totaling 1.58 million square feet, 3.6% was added to the vacancy rate which now stands
at 7.28%. This represents the greatest amount of annual negative absorption the Calgary
downtown office market has ever experienced.

Full report is: here (http://www.collierscalgary.net/reports/downtown/Q4/Q4_2013_Downtown_Market_Report.pdf)

[J pold]

Just wrapped up our suburban and beltline dashboard for Q4 2013, take a look!


BELTLINE
http://i.imgur.com/0bYpIuY.png

SUBURBAN
http://i.imgur.com/BxiVU2m.png

[J pold]

Allied Properties REIT hosted a broker reception last week. They have been very successful in Calgary and now hold the majority of character space in the city with the acquisition of Biscuit Block and The Pilkington Building which will close later this month.

The Herald did a write up on them. If your company wants character space in Calgary, you’ll almost certainly be dealing with Allied.

Allied Properties REIT continues Calgary buying spree. Art Central and Fashion Central buildings transformed.

“The consolidation in Calgary has been very successful for us,” said Michael Emory, president and chief executive of Allied, who was in Calgary this week. “We wouldn’t have expected going in, to be honest, that we’d be able to put together such a good concentration of properties so quickly. But we have. It’s gone very well. We like the market . . . We’ve really been pleased with what we’ve been able to accumulate here.”

Full article is: here (http://www.calgaryherald.com/business/commercial-real-estate/Allied+Properties+REIT+continues+Calgary+buying+sp ree/9482484/story.html?__lsa=8ab7-580e)

[ranchlandsselling]

Allied Properties REIT hosted a broker reception last week. They have been very successful in Calgary and now hold the majority of character space in the city with the acquisition of Biscuit Block and The Pilkington Building which will close later this month.

The Herald did a write up on them. If your company wants character space in Calgary, you’ll almost certainly be dealing with Allied.



Full article is: here (http://www.calgaryherald.com/business/commercial-real-estate/Allied+Properties+REIT+continues+Calgary+buying+sp ree/9482484/story.html?__lsa=8ab7-580e)

royop fully out of biscut?

[J pold]

royop fully out of biscut?
Not technically as the sale hasn't closed but if it does, and it likely will, then yes they'll fully be out of it.

Allied is on a buying spree and I think their model will be very successful in Calgary.

[J pold]

It’s been a crazy few weeks for the commercial office market but I wanted to update this thread with new activity. We have been seeing a numbers of business outside of the downtown look at purchasing their property over leasing. One new building that has hit the market in the past few weeks is the Danatec Building on 24th Street in the SE. Specs are below:

If your company is looking at purchasing a building let me know!

11450 29th Street SE Calgary, Alberta

Property Highlights

AAA Building on 2 levels
Modern Office Finishing
Excellent Signage Visibility
Premium location with Easy access to
Deerfoot Trail Quarry Park and East Lake
Handicap access and elevator
12 designated parking stalls with others available on first come basis


Property Details


Office Unit # 201 4,532 sq. ft.
Legal Description: Plan 0111977, Unit 15
Office Unit # 205 4,004 sq. ft.
Legal Description: Plan 0111977, Unit 16
Total: 8,536 sq. ft.
Zoning: I - C (Industrial - Commercial)
Property Taxes: $14,766.98
Asking Price: $2,900,00


Pics:
http://i.imgur.com/0wujcMR.png
http://i.imgur.com/guwki5z.png
http://i.imgur.com/prAp5fd.png
http://i.imgur.com/WlFVmri.png

[J pold]

Office Leasing Details:

Available Area:

Building 1: 23,200 sq. ft. (one storey) 100% Available
Building 2: 52,600 sq. ft. (two storey) 90% Available
Building 3: 6,396 sq. ft. (two storey) 15% Available
Building 4: 16,100 sq. ft. (one storey) 100% Available
Total: 132,600 sq. ft.


Parking:


205 surface stalls, 194 underground stalls
3 stalls per 1 ,000 sq. ft.
51% surface to 49% underground


Operating Expenses:

One storey buildings est. at $7.00 psf
Two storey building est. at $11.00 ps


Occupancy:

Building 1 & 2: Ready for fixturing
Building 3 & 4: Ready for fixturing
From approximately 3,500 to 92,745 SF


http://i.imgur.com/kpeTsIW.png
http://i.imgur.com/7Rv7d7w.png
http://i.imgur.com/S1xPVKq.png
http://i.imgur.com/hI5k8ow.png
http://i.imgur.com/CztwQQB.png

[J pold]

Had a luncheon today with Remington Developments about Meredith Block. Right now they have the 5th floor leased to IBI Group. It's an interesting project that I think they'll ultimately be successful with. The signage opportunity looking out over the 5th Avenue Flyover will be spectacular.

PM me if you have any further questions.

I have a dropbox with rendering and information: here (https://www.dropbox.com/s/x7d84yqimosuvj9/Meredith%20Block%20-%20Broker%20Luncheon%202014%20-%20Complete%20Package.pdf)

[J pold]

Just got back from a luncheon on Arlington Developments new project on Elbow and 50th ave. The Windsor is five story mixed use development with main floor retail and 4 stories of office. They have a handful of deals in place but need to get a few more across the goal line before they start moving on construction. The pre-leasing threshold is 40%.

Marketing brochure and info is here (http://www.loopnet.com/Attachments/0/7/4/0743F862-42B1-4EAA-A526-E3173D937A47.pdf), let me know if you have any questions.

[J pold]

Fluffy article about the Arlington Projects and the Windsor.

http://www.calgaryherald.com/business/Arlington+project+respects+community/9629288/story.html

[J pold]

Oilpatch optimism flowing back into Calgary downtown office market

A new report by commercial real estate firm CBRE shows a swing in a positive direction for leasing of office space in the core during the first quarter of this year.

http://www.calgaryherald.com/business/Oilpatch+optimism+flowing+back+into+Calgary+downto wn+office/9646836/story.html

Report is from CBRE, we both run numbers every quarter and CBRE research tends to be more positive than Colliers but interesting seeing their perspective. I'll be posting our quarterly report once it's completed this week.

[Arsenal14]

Do you know what is going on with the retail space in Nuera/Alura (1st St. East between 13th & 14th Ave South)? I know the plan was to open that up once the second tower finished which should be later this year but I was wondering if know and can share any of the following:

1. What date they expect it to be available to a commercial tenant?
2. How many spaces there are - is it one large unit or several smaller ones?
3. Are there any retailers lined up yet or any interesting rumors?

[J pold]

Do you know what is going on with the retail space in Nuera/Alura (1st St. East between 13th & 14th Ave South)? I know the plan was to open that up once the second tower finished which should be later this year but I was wondering if know and can share any of the following:

1. What date they expect it to be available to a commercial tenant?
2. How many spaces there are - is it one large unit or several smaller ones?
3. Are there any retailers lined up yet or any interesting rumors?
I’m office so in short no I don’t. Retail is extremely protective of their information so even if I was a retail broker I couldn’t share that information in a public forum like CP. Most major retailers have their own real estate departments who do a lot of planning and number crunching before they make a decision. It can take years to come to an agreement on the lease and brokers are restricted by confidentially agreements until everyone signs on the dotted line.

For example I list the office space in 20/20 (the new development in Mission along 4th street) and have no idea what’s going on with the retail portion of the building even though it’s been done within in our office.

[J pold]

Interactive map of parking rates in downtown Calgary:

http://www.calgaryherald.com/news/calgary/Interactive+Parking+rates+Calgary/9692411/story.html

[J pold]

I've been away but will be back up to updating this thread regularly. Some news articles about the 3 Eau Claire disaster. We have been in discussion with Shaw about their long term strategy now that their deal feel apart.

3 Eau Claire project seeking partner or new owner to continue

http://www.calgaryherald.com/business/Claire+project+seeking+partner+owner+continue/9784822/story.html

[J pold]

The Colliers Downtown Team just finished up the Q1 2014 Downtown Office report. In it we go over major transactions in the market place, emerging trends, and overall and forecasted vacancy.

Take a look and if you have any questions feel free to PM me!

http://i.imgur.com/r6FH9Ug.png
http://i.imgur.com/Mh7PAJ4.png
http://i.imgur.com/NHpzFkP.png
http://i.imgur.com/5x66Gde.png

Download the full report here (http://www.collierscalgary.net/reports/downtown/Q1/Q12014DowntownQuarterlyReport-FINAL.pdf).

[J pold]

Posted this in the Imperial Oil thread but I thought it belonged here as well. Westmount Building 5 is 8 floors with 240,000 rentable square feet a Rumors are that Stantec and Bantrel are looking at it.

Rendering below:
http://i.imgur.com/TEeLR2r.jpg

Westmount Website is here: http://www.westmountcorporatecampus.com/#

[J pold]

Calgary downtown office market rebounds at a slow pace

CALGARY - After a downturn in the downtown Calgary office market last year, leasing activity has picked up in the city, but at a slow pace.

Randy Fennessey, president/partner of Colliers International, described Calgary’s downtown commercial real estate market as a “healthy” one with a vacancy rate around 8.1 per cent.

http://www.calgaryherald.com/business/commercial-real-estate/Calgary+downtown+office+market+rebounds/9903218/story.html?__lsa=aa72-3575