Calgary SSP Development Listing

[J pold]

^^^^Slate bought the site for pennies on the dollar after the building became nearly entirely vacant after Scotia moved to Brookfield Place. I'm really exited about what they have planned for the site.

[Bunk]

I heard a rumour Nexen is moving to the Bow as a sublease to Cenovus, who is moving to Brookfield Place.

The west end of downtown is going to be rather empty.

[I_H8_Crawford]

Originally Posted by Bunk

I heard a rumour Nexen is moving to the Bow as a sublease to Cenovus, who is moving to Brookfield Place.

The west end of downtown is going to be rather empty.

I heard the same thing from a few people.

[J pold]

Originally Posted by Bunk

I heard a rumour Nexen is moving to the Bow as a sublease to Cenovus, who is moving to Brookfield Place.

The west end of downtown is going to be rather empty.

Not a rumour, it's public knowledge at this point: https://theprovince.com/business/com...9-ab5e20881c2d

The rumour I heard is that Nexen still has a long term left on their lease at 801 – 7th Avenue SW and is essentially just walking away from it all. The Landlord for the building will take legal recourse but the entity behind Nexen is the CNOOC who basically said good luck trying to sue the Chinese government.

[I-Hate-Hulse]

The legal precedence of zero recourse this is setting is going to make it pretty tough for anyone to do business with CNOOC.

If you renege on your obligations and I can't litigate - I guess we can't do business. (ie Sequoia)

[Weitz]

Originally Posted by I-Hate-Hulse

The legal precedence of zero recourse this is setting is going to make it pretty tough for anyone to do business with CNOOC.

If you renege on your obligations and I can't litigate - I guess we can't do business. (ie Sequoia)

Cash up front!

[SebC]

Originally Posted by I-Hate-Hulse

The legal precedence of zero recourse this is setting is going to make it pretty tough for anyone to do business with CNOOC.

If you renege on your obligations and I can't litigate - I guess we can't do business. (ie Sequoia)

If what's being suggested actually pans out, it's not just business with CNOOC... it's business with China.

[bizaro86]

I don't really get that. They still have tons of assets in Canada. Wouldn't you sue them here, not in China? A court in Calgary isn't going to care who owns them, but they'll see someone not paying their lease...

Maybe it's more complicated than that, but I don't see some sort of state immunity argument extending to a partially state owned oil company breaking a lease in Canada.

[Bill Bumface]

There are more nuances to Nexen's existing lease that could get interesting, but I'm not sure what is public info yet.

[I-Hate-Hulse]

That Province article talks about "health concerns" about their old building. Maybe they used an out clause for that?

[Hack&Lube]

Originally Posted by Bunk

I heard a rumour Nexen is moving to the Bow as a sublease to Cenovus, who is moving to Brookfield Place.

The west end of downtown is going to be rather empty.

When is Cenovus scheduled to be moving from the Bow to Brookfield? Was trying to contact a friend who works there so I could have a look at the sky level thing they have there.

[Hack&Lube]

Originally Posted by bizaro86

If it's really that sold out, management might not care how many stalls are open or think advertising is worth spending on. They would have got their money already...

The problem is it seems many of the units (if not most) were purchased by investors thinking they could rent it to to small businesses. Now they can't find any tenants.

In a typical mall, the mall owns all the storefronts and rents/leases them out to businesses.

In this case, a lot of suckers bought units thinking they could rent them out but this just adds overhead to the small businesses and moms & pops that this type of thing seems to be designed for.

[I_H8_Crawford]

Originally Posted by Hack&Lube

When is Cenovus scheduled to be moving from the Bow to Brookfield? Was trying to contact a friend who works there so I could have a look at the sky level thing they have there.

IIRC they will have people in there starting in November

[J pold]

Rumour is today that Nexen is only moving for 3 years retrofitting the old building then moving back. I guess they did find trace asbestos which was enough for them to seek recourse with the Landlord to vacate. Seems really old they would up and move then do it again in 3 years. Some people are saying it's a 3 year deal with an option to renew for another 3. I suspect once they are in there they won't be moving back.

[you&me]

Originally Posted by J pold

Rumour is today that Nexen is only moving for 3 years retrofitting the old building then moving back. I guess they did find trace asbestos which was enough for them to seek recourse with the Landlord to vacate. Seems really old they would up and move then do it again in 3 years. Some people are saying it's a 3 year deal with an option to renew for another 3. I suspect once they are in there they won't be moving back.

With the state of the office market, my guess would be they're basically getting space for free (lease) for three years to allow for the remediation and then leveraged their return for a sweat heart long-term deal.

[J pold]

Originally Posted by you&me

With the state of the office market, my guess would be they're basically getting space for free (lease) for three years to allow for the remediation and then leveraged their return for a sweat heart long-term deal.

Yup pretty much. Although for a quality building like The Bow they are still going to have to pay some rent. I know everyone hears about 30% vacancy downtown but in the AA Class sub-market the vacancy rate is only 8% which is a pretty balanced market. Eight Avenue Place actually rose their rents last quarter, first time in 3 years someones done that.

[Husky]

Originally Posted by J pold

Yup pretty much. Although for a quality building like The Bow they are still going to have to pay some rent. I know everyone hears about 30% vacancy downtown but in the AA Class sub-market the vacancy rate is only 8% which is a pretty balanced market. Eight Avenue Place actually rose their rents last quarter, first time in 3 years someones done that.

The AA market is doing well because of sweet heart deals.

[J pold]

Originally Posted by Husky

The AA market is doing well because of sweet heart deals.

Yes, relative to what people where paying coming off leases signed from 2010 - 2013. We are really seeing a 'flight to quality' in our market. Essentially the rent you used to pay for your crappy brown west end B class building you can now move to a AA space in a centre ice location for the same rate.

[Lubicon]

This will be a fantastic addition to UCalgary.

https://www.ucalgary.ca/utoday/issue...oard-governors

[Bigtime]

Not Calgary, but Norway has the new tallest timber building in the world at 85.4m:


https://skyrisecities.com/news/2019/...imber-building