POV Q3 Point of View Downtown and Beltline Office Market Report - Cresa
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
POV
Point of View
Q3
2
0
1
8
Downtown and Beltline Office Market ReportMarket OVERVIEW
Downtown Market Parkland Fuel Corporation
Calgary’s summer of 2018 was three things – hot, hazy, and BMO Financial Group
short-lived. No, we are not talking about the weather, we are Sinopec Canada Energy Ltd.
talking about the market for commercial real estate. We saw an
uptick in absorption, increased uncertainty about the future of
Trinidad Drilling Ltd.
the market, and an increase in leasing activity that may be Pembina Pipeline Corporation
short-lived. CES Energy Solutions Corporation
While the city itself may have seemed sleepy through summer Serafina Energy Ltd.
holidays, we just experienced one of the strongest quarters for
office leasing since 2012. On the surface, 204,968 sf of positive Packers Plus Energy Services
absorption – or approximately a 0.4% vacancy decrease – may MLT Aikins LLP
not seem like much in the way of activity. However, there is far
more to the leasing picture than what we can see on the surface. Telus
One of the biggest impacts to vacancy figures in Q3 was the Aviva Canada
anticipation of 320,000 sf of sublease space from Cenovus in the What do these transactions say about the market? At first glance,
new Brookfield Place Calgary - East Tower coming to market. it appears that the market is picking up. Oil prices seem to have
Though we cautiously anticipated that this sublease vacancy stabilized, despite continuing differentials for Canadian petroleum
could flood the market and impair absorption coming into the products, and we are seeing early signs of economic diversification
fall – which was endorsed by historical trends showing Q3 as as firms from outside of the energy sector are moving to Calgary
the slowest quarter for leasing (see: Cresa’s Q1 Point of View) or are entering into real estate transactions to facilitate growth.
– our worry was fortuitously misplaced. While Cenovus’s space On the other hand, we are not seeing significant quantities of
provided a bump in inventory, it was offset by a material quantity investment dollars entering Alberta from outside of the province,
of leasing. Excluding the sublease space anticipated in Brookfield and the growth that we are experiencing looks to be primarily
Place Calgary, which has existed as ghost space for some time, organic in nature. Without access to capital from both local and
approximately 525,000 square feet of space was leased over foreign players, it should be difficult to fill any significant quantity
the summer. of space in downtown Calgary. The city needs major projects with
Large, contiguous blocks of AA and A class space were leased real job creation in order to move the vacancy rate downwards at
by companies from the energy and financial services sectors a material pace. That does not mean that we will not continue to
in the third quarter. Some of these groups moved into the core see improvement, though.
from suburban Calgary, lowering downtown vacancy while pulling These transactions also speak directly to the characteristics of
tenancy away from other markets; others expanded their existing available commercial real estate in Calgary. Of the aforementioned
footprint in the downtown core. Large transactions included: transactions, there was a fairly even split of sublease andMarket OVERVIEW
headlease transactions. There are two easy explanations for the its greatest victim. Vacancy in the B class now stands at 39.32%.
headlease-to-sublease ratio. The first is the availability – or lack Smaller tenants are exceedingly common in B class buildings, and
there of – of “ready-to-go” sublease spaces; as the market has it is difficult for B class landlords to lease-up large chunks of space
matured through the present downturn, the sublease spaces with the same frequency that AA and A class landlords are able to.
that were completely move-in ready, with reception, appropriate C Class – The “discount class” still has an important niche in this
meeting rooms, and other core features have garnered the most
economy, providing ultra-low-cost options to tenants who are
demand. The remaining spaces, which were typically “working
looking for them. C class vacancy is slightly better than the market
floors”, lacked the amenities that a single floor tenant requires. average, at 23.84%, and witnessed positive absorption in the
The second explanation is the age of improvements within many
third quarter to the tune of 20,843 sf, or approximately a raw 3%.
of the remaining sublease spaces. Between the early 2000s and
2008, when commodity prices boomed, new office space was
constructed throughout downtown Calgary. Space of that vintage Beltline and Fringe Markets
is approaching an age of 10 to 15-years-old, and is outdated with Vacancy in the Beltline continued to trend higher in the third
respect to the office designs of today. Now, as tenants search quarter, with the vacancy rate reaching 24.00% after last quarter’s
for spaces that do not require their own investment on the front- rate of 22.63%. The migration of tenants from suburban Calgary –
end of a real estate transaction, landlords are stepping up with and the Beltline – into downtown continues to drag on occupancy
turn-key opportunities and major tenant inducement packages to figures. Fortunately for Beltline landlords, we did witness larger
attract tenants. tenants from south and north suburban areas move into the
Regardless, between tangible leasing and reduced market “slack”, Beltline in the third quarter. The Beltline continues to function as
we saw a strong quarter for downtown leasing, particularly in the a central alternative for companies looking to stay out of the core,
AA and A classes. Let us look at each market class separately: as it boasts greater access to parking and reduced commute
times. Tenants in the Beltline can look for similar rates to those
AA Class – The AA class continues to carry the lowest vacancy, found in downtown Calgary, in addition to competitive inducement
currently sitting at 17.01%. The majority of AA class vacancy packages.
remains as sublease vacancy, representing two thirds of the
available space. Despite the addition of anticipated sublease Downtown’s other fringe areas are seeing more competition over
space, large tenant transactions, and continued merger & space and rates. In Mission, Kensington, and Inglewood/Ramsay,
acquisition activity, total AA class vacancy stayed flat, in part due vacancies between 5,000 and 10,000 square feet are few and far
to our reclassification of Millennium Tower from AA class to A class. between. At the time of writing this report, each of those three
markets only had two vacancies in the aforementioned size
A Class – The A class segment saw the most leasing in Q3. While band. Smaller tenants have more optionality in the fringe markets
it benefited from the Millennium Tower reclassification, some of – particularly those under 3,000 sf – but there are still very real
the largest transactions of the quarter also occurred in the A class, limitations. Please refer to Table One for the current vacancy rates
headlined by Parkland Fuel in BP Centre. for the fringe markets.
B Class – The B class continues to bleed vacancy, as it has done
since 2012. The “flight to quality” is very real, and the B class isMarket FORECAST
Much like the weather, blanketing the city with smoke for most of B. Residual personnel adjustments with respect to large
the third quarter, Calgary’s market for commercial real estate failed corporate transactions from the first three quarters of 2018,
to provide us with any real clarity in the summer of 2018. Now, primarily pertaining to employment overlaps
progressing through a cool “fall”, we are hoping that icy conditions
C. The first investments from the Opportunity Calgary Investment
do not mimic our opportunities for absorption in the downtown
Fund (OCIF), which should help local employers add new
core.
bodies to their teams
As described in our market report, the third quarter was,
D. Optimism over the confirmation of Shell’s LNG project in
comparatively spending to recent years, a big quarter for
Northern British Columbia, which has the potential to be a
absorption. Keeping that in mind, consider the following:
boon for Calgary employment
Calgary’s unemployment rate climbed to 8.2% in August,
International and national macro-economic forces will add
up from 7.9% in July, and stands as the second highest
further complexity to the economic picture in Calgary. Several
municipal rate in the country
economists cheered the resolution of the new USMCA trade
The Conference Board of Canada is forecasting real GDP agreement, although its impacts remain to be seen. Tariffs on
growth in Alberta at 2.2% in 2019, down from 2.6% in steel and aluminum are still in tact between the United States and
2018 Canada, and continue to be a point of contention between the
Vacancy is still at 24.5%, despite the relatively active two countries. The Western Canadian discounts for both oil and
quarter Calgary just experienced gas are near all-time highs, and we still do not have the answers
we need on the TransMountain pipeline to have confidence that
Take in the above. Now, not to dampen the mood, but we need we can solve our energy transportation issues. We are treading in
tempered optimism. Yes, material leasing of commercial real uncertain times and repercussions of federal decisions remain to
estate happened in the third quarter. Yes, the vacancy rate moved be seen with respect to Alberta’s and Calgary’s economies.
in a positive direction for the first time in a long time. No, Cresa
does not anticipate sustained quarters like the last one. Going forward, we are hesitant to predict a material decline in
downtown vacancy over the course of the next six-to-twelve
So, what can Calgary expect into the end of 2018 and the start of months. Expect modest fluctuations to the vacancy rate and
2019? While the future is difficult to predict, we have a few good a moderately flat leasing environment, strongly maintaining
clues with respect to what to look for in the following months. Calgary’s standing as a “tenant’s market”. The cold weather may
A. Further consolidation in the energy sector, leading to staffing have arrived early, but we expect market conditions to mirror a
redundancies typical Calgary winter – cool, cloudy, and the beneficiary of the
odd chinook breeze.
The pending acquisition of Trinidad Drilling by
Precision Drilling
The proposed acquisition of MEG Energy by
Husky Energy
Graph ONE
500,000 30.00%
450,000
FORECASTED VACANCY 400,000 Telus Sky
25.00%
350,000
20.00%
Tenant Market
300,000
250,000 15.00%
200,000
10.00%
150,000
New Inventory (sf)
100,000
5.00%
Vacancy (%)
50,000
0 0.00%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Forecast Forecast Forecast Forecast Forecast
2018 2019 2020 2021 2022
New Inventory Historical Vacancy (%) Forecasted Vacancy (%)Table ONE Click here to view
vacancy details
Q3 2018 VACANCY SUMMARY
BUILDING CLASS TOTAL INVENTORY HEADLEASE SUBLEASE TOTAL
(sf) (sf) (%) (sf) (%) (sf) (%)
Downtown
AA 15,960,873 929,960 5.83% 1,785,525 11.19% 2,715,485 17.01%
A 17,451,204 3,151,232 18.06% 1,217,396 6.98% 4,368,628 25.03%
AA/A 33,412,077 4,081,192 12.21% 3,002,921 8.99% 7,084,113 21.20%
B 7,539,393 2,786,722 36.96% 194,401 2.58% 2,981,123 39.54%
C 2,584,781 516,117 19.97% 100,115 3.87% 616,232 23.84%
Total Downtown 43,536,251 7,384,031 16.96% 3,297,437 7.57% 10,681,468 24.53%
Beltline and Fringe Area
Beltline 6,785,144 1,074,910 15.84% 553,232 8.15% 1,628,142 24.00%
Kensington 604,702 58,171 9.62% 0 0.00% 58,171 9.62%
Inglewood 461,985 23,776 5.15% 9,427 2.04% 33,203 7.19%
Mission 937,532 148,034 15.79% 6,509 0.69% 154,543 16.48%
Total Beltline & Fringe Area 8,789,363 1,304,891 14.85% 569,168 6.48% 1,874,059 21.32%
Graph TWO Graph THREE
SUBLEASE VACANCY INDEX Sublease Vacancy Index
COMPARATIVE Comparative
VACANCY Vacancy Rate Q3 2014 - Q3 2018
45.00%
80.00%
40.00%
70.00%
AA = 65.75
35.00%
60.00%
30.00%
50.00%
25.00%
40.00%
20.00%
A = 27.87%
30.00%
15.00%
20.00% 10.00%
C = 16.25%
Vacancy %
Vacancy Rate
10.00% 5.00%
B = 6.56%
0.00%
0.00%
Q3 2014 Q3 2015 Q3 2016 Q3 2017 Q3 2018
Class AA Class A Class B Class C
Class AA Class A Class B Class C
Table TWO
LARGE BLOCKS OF AVAILABLE CONTIGUOUS SPACE, DOWNTOWN CALGARY
Buildings Type Area (sf) Building Type Area (sf)
The Bow Sublease 321,077 F1RST TOWER Headlease 177,352
Brookfield Place - East Upcoming Sublease 320,869 Stephen Avenue Place Headlease 134,111
Telus Sky Upcoming Headlease 286,172 Hanover Place Headlease 126,211
Brookfield Place - East Headlease 265,000 Lavalin Centre Headlease 119,366
707 Fifth Headlease 261,056 The Edison Headlease 118,826
Penn West Plaza - East Sublease 196,539 The Bow Sublease 116,165
Gulf Canada Square Sublease 193,604Prince’s
Island
Centre Street Bridge
Condo
Estates
Me
Rest. mo
rial
Driv
e
New DEVELOPMENTS
Condo
Condo
Princeton l & II Eau The Waterfront
Future
Claire
P
Bow DOWNTOWN
Development Condo Y.M.C.A.
Rest.
7 Riv
Site
Condo Condo
Eau er
Claire
Rest.
Market
Eau Claire Avenue S.W. Riverfront Avenue
Sheraton
Suites
Future Calgary Chinatown
Development Condo Seniors Centre
Millennium
Fav Claire
Joe Phillips
The P Rest. P
Building
Apt Site
Bow Claire Apt Indian
Tower
P TELUS Sky
1
Friendship Bowside Broadview
P P
Condo P Centre Manor Centre Hong
Kong Plaza
Chinese Landlord: Telus, Westbank
Daqing Avenue 2 Avenue S.E.
Cultural Rive & Allied REIT
rfron
LaCaille
Rest. Park
Centre t Av
enue Office Floors: 26
Eau Claire Manor Livingston P NG Office Area: 430,000 sf
Place Centennial Place Waikwan Tower
Barclay Mall
Shaw Eau Claire
Centennial Place East Future
Calgary West Manor China Town Ave. Floor Plate: 16,500 sf
Place West Development
Court Tower
Devon Site
City
Five Harvest Apt. Apt. Apt.
Est. Completion: 2019
P Tower
Centre Livingston Place
Plaza Percentage Leased: 36%
Prince’s Crossing South P P Anchor Tenants: Telus
Rest.
ExecSuite
3 Avenue S.E. The Riverfront
Gov’t Harry
4P
Churchill North of Hays
Pavillion 615 Eau Claire Place P P Canada Bldg.
Estates 3rd Ave. P City Opulence
International
I II Westin
Brookfield Place Calgary - West
2
nt Shell Plaza Centre
Hotel
Centre Hotel BP
Future
P Regency Jamieson Sun Life Plaza Riverfront
Altius Place Development Landlord: Brookfield Properties
Centre
Pacific
Summit Centre First Pointe
Asia
McFarlane Retail
Optima P Tower Bldg
Bldg Site Dragon City Street
P Floors: 41
Place Plaza
West East Building Area: 1,000,000 sf
4 Avenue S.E. Ave. Floor Plate: 27,500 sf
Est. Completion: n/a
Phillips
3 Street S.E.
Macleod Trail
1 Street
Bldg 555 London Fourth & Northland Calgary Metropolitan
Canada Fifth Ave. Fifth Ave. Delta Anchor Tenants: n/a
McDougall P
S.W.
S.W.
4th
S.W.
House Place Place II Place Place Place TransCanada Hotel
Centre Street
Fourth
5 Street S.W.
7 Street S.W.
Ave. Centre P
Centre Centre West East PipeLines James Short F1RST
P P Tower Baker
S.W.
Tower Parkade Fire
Ubridge
S.E.
3 Street
4 Street
2 Street
Chevron Calgary Hall House
5th Ave.
640 5th Hawthorn Hotel Aquitaine 520 Roslyn Stock College
P #1
444
622 5th 5th Ave. Plaza Building Place I
& Suites Bldg
6 Street S.W.
Ave. Ave. Exchange Tower
1 Street
Oxford Tower
441 Prospect
5 Avenue S.E.
Northwest
3
Chateau
639 5th
Five Future 5 Ave. 505 333 Petroleum East Tower Travellers Landlord: Oxford Properties
P 715 - 5th Ave. Apt. Fifth & Fifth Ten P Oxford Tower 3rd Place III II Bldg.
Ave. Fifth Development
5th Ave. Club Suncor
The Bow Calgary Bow Floors: 47
Knox Bow Valley Square
Site United
Energy Board of Worker’s Valley Building Area: 1,200,000 sf
Centre
736 - Pacific Bantrel Calgary Church 404 -
Centrium
Education Compensation College Ave. Floor Plate: 26,000 sf
634 West Tower
6th
Parkade P Tower Bradie House P 6th Ave.
Place P IV I Budget Board Est. Completion: n/a
6th P Oddfellows
Ave.
Bldg Petex Bldg Building Anchor Tenants: n/a
Britannia Alpine Ford
2 6 Avenue S.E.
Carber
606 Bow Parkade Lougheed Block Rocky Court
Future
Terrace Bldg Bldg Tower Fourth
West East
Brookfield Telephone Hanover P Police
Place Prov.
Centre P
Dev P Mountain
1
Place
6
Intact Place Remand
Mall
Gardens Harley Building
Site Calgary P Place - East Court (Apt.)
Hotchkiss
Courts
Historic Court Gardens Rocky Palliser West and East
4
Public
Library
Barclay
Centre First Future City
Life Sierra John J. of Appeal Telus Telus Anglican
444 TELUS Mountain
Plaze P Place Bowlen Canadian Development P Bldg Bldg Sky P Cathedral Police P
Bldg Seventh Plaza
Centre Site Bow Parkade H.Q. Landlord: Aspen Properties
LRT LRT LRT LRT LRT LRT LRT 5 Floors:
Building Area:
29 each
620,000 sf each
Central
Iveagh
Encor TD Canada
Dome Devonian Stephen United
Ave. Floor Plate: 23,500 sf
House City Trust
Guinness Elveden House 707 Fifth
TV Tower Tower Gardens Avenue Church P Hyatt Hotel
Telus Convention
Est. Completion: n/a
House Place Watermark Holt Place The Centre Olympic Anchor Tenants: n/a
Tower Renfrew Bay North
Western Plaza City
Home Lancaster Bank of Winner Hudson Dominion
Ramada Union Strategic Barron The Core The Core Hall
Petrofina P Hotel
Bldg. Centre Building
P Shopping Shopping Tower Bldg. Montreal Dept.
Retail
Block Bank
Bldg. Hist Bldg Store Bldg.
Stephen Avenue Mall 8 Avenue S.E. Municipal
Hollingsworth Alberta
6
North Plains Eighth Shaw HSBC Bldg. First Canadian Centre - East
First 635 Calfrac Royal Building National Retail Hotel Telus Convention Burns
Western Midstream Plaza Avenue Bldg. Bldg. Retail Retail Calgary Arts
8th Ave. Bank Bank Building Marriott Centre Bldg.
Alberta Place Canadian Place Public Commons
Bldg Hotel South Building Landlord: GWL Realty
Place
West Eighth
Avenue Bankers Hall Grain Edward’s
Advisors
Bankers Glenbow
City of Calgary
Centennial
P Place P West East Court P Exchange The Edison Le Germain P Place P Floors: 27
Parkade Museum
Electric Sub- South East Building Area: 698,000 sf
station # 1
Ave. Floor Plate: 27,400 sf
4 5
9 Avenue S.E .
Tech
P
Est. Completion:
Anchor Tenants:
n/a
n/a
Calgary Place 303 -
Palliser Future Future Palliser P
P P Gulf Canada Square Penn West Plaza
Hotel Dev. Tower Dev. One 9th Ave
West East Site Site
Tower Centre
C.P.R.
Place 10 Place 10
City Centre Parkade Mount Palliser
7 Eau Claire Market Redevelopment
Canada
Retail South
Sprint
West Royal
Retail P Alberta Boot Co. East
P P P P
House
P P Landlord: Harvard
Developments
10 Avenue S.E. Floors: 40
Building Area: 555,000 sf
Condo
Hudson
Kipling
Kipling
Macleod Trail
3 Street S.E.
Annex
1 Street S.E.
Demcor
Bottle Apt. Alberta
707
Depot Square Centre 10
Rest. &
Butcher Block Retail P P MacCosham
Bromley Square
Carbon MEG Future The
P Self Ave. Floor Plate: 13,800 sf
P 10th Ave P Block Trade
5 Street S.W.
Copy Place Brownstone
4 Street S.W.
6 Street S.W.
P Dev. Site Storage Est. Completion: n/a
7 Street S.W.
k
1 Street S.W.
Office
2 Street S.W.
Centre Street
Centre
P Anchor Tenants: n/a
Joffre Sunrise Lewis Paramount
1015 Genco 11th Retail Clennan Mustard Mustard 134 - 11th
Place Square 5/5 The The Lofts Building Braemar Louis Ribtor I Ribtor II
P Retail 4th St. Place P Vintage II Vintage I
Avenue Square Seed Seed P Ave. S.E. Bldg. Blk.
The Paserium Place
11 Avenue S.E.
Fairmore Sport
Roberts P Future Office
P 525 P
p
Bldg. Swap Atrium on
11th Block
Retail
11th Ave. Development
Site
P
333
-11th
301 -
11th Ave
IBM
B
Al
ta Future Anticipated Completion
IBM s Development
an dg P
Bldg. Tr Bl Keynote
Barnhart Foundation Lorraine Parkside Citadel Sam 1122 4th Can-am
Manhattan
Site Future 2019 Pending
Block Lacey
Xenex P Bldg Place West Castello Livingston St. S.W. Court Bldg.
Masonic
P IBM
Lofts Development P
Condos Bldg. Temple
C Office
SiteChinese
2 Avenue S.W. Daqing Avenue 2 Avenue S.E.
Cultural Rive
LaCaille rfron
Centre t Av
Rest. Park Eau Claire Manor Livingston P en ue
Eau Claire NG
The Point Place Centennial Place Waikwan
Future Tower
Barclay Mall
on the Bow Lookout Shaw Centennial
Eau Claire Place East Development Calgary West Manor China Town
Place West
r
New DEVELOPMENTS
Tower
e
Court City
e
Site
ov
Devon Apt. Apt. Apt.
Bridg
Centre Five Harvest
Livingston Place
ly
Liberte P Tower Plaza
eF
P Eau Claire
Prince’s Crossing South P P
Rest.
nu
gevin
ExecSuite
ve
4A
3 Avenue S.W. 3 Avenue S.E. The Riverfront
La n
BELTLINE
Gov’t Harry Condo
Sonoma Churchill North of Hays
Eau Eau Claire Place P
Old
Livingston Pavillion 615
ge
Place P Canada Bldg.
House P Claire Estates 3rd Ave. P P
City Opulence
International
I II Westin
Brid
Retirement Shell Plaza Centre
Hotel
Centre Hotel BP
Future
P Jamieson Sun Life Plaza Riverfront
in
P Regency
ev
Development
Pacific
Centre
Columbia United Summit Altius Place Centre First Pointe Bookers
Asia
McFarlane Retail
ng
Apts Neff Apts Place P Bldg
Bldg Centre Site Dragon City Street
P
La
744- Tower Plaza
West East
4th Ave.
4 Avenue S.W. 4 Avenue S.E.
Phillips
3 Street S.E.
Canadian
Macleod Trail
1 Street
555 Calgary Canada Delta Cecil Calgary Drop
Electric Prince’s Island Bldg London Northland Metropolitan Fifth Avenue Fifth Ave.
P Centre P Fourth &
S.W.
Place II Hotel
S.W.
4th
S.W.
Substation Place House Place Place Place Place Hotel in Centre
Centre Street
8 Street S.W.
5 Street S.W.
Fourth TransCanada
7 Street S.W.
Ave. Centre P
West East F1RST
1
James Short
P P
PipeLines Tower Baker Place 10 - East
S.W.
5 West Apt. McDougall Tower Parkade Fire
S.E.
3 Street
4 Street
Centre
2 Street
Place Chevron Calgary Hall House
Landlord: Centron
5th Ave.
Aquitaine 520 Roslyn
444
West East The Heritage 808 622 Hawthorn Hotel Ubridge
926 Place
640 5th
5th Ave. & Suites 5th Ave. Plaza Building Place I Stock P College #1
5th Ave. Bldg
Developments
6 Street S.W.
Sundance Ave. Exchange Tower
1 Street
P
5 Avenue S.W. 5 Avenue S.E.
Floors: 14
Northwest
Building Area: 316,500 sf Simmons
Bldg
441 Prospect
Rimbey
House P
Lavalin
Atrium P
Diversified
P
Chateau
Apt.
639 5th Five
Ten
5 Ave. 505
3rd
333 Petroleum
Place III II
East Tower Travellers Ave. Floor Plate: 24,850 sf
Centre Staffing Ave. Fifth & Fifth P Bldg. 5 Ave
Future Est. Completion: 2017
I 715 - 5th Ave. Oxford Tower 5th Ave. Club Suncor The Bow
Fifth Calgary Bow P nue S
Development Site Knox Bow Valley Square Energy .E.
United Centre
Board of
Education
Worker’s
Compensation
Valley Anchor Tenants:
Development n/a
Place 736 - 634 Calgary Church 404 - College Site Police Alberta Locker
Edinburgh Atrium Place Pacific Bantrel Centrium West Tower
P 6th P P Service
9-6
Place Parkade Tower 6th Bradie House 6th Ave.
Place P IV I Budget Board Association
II 800
Ave. Bldg
P Petex Building
Oddfellows
Building Site
6 Avenue S.W. 6 Avenue S.E. 6 Avenue S.E.
Britannia Alpine Ford Lougheed Block Carber Calgary Police
Future 606 West East Rocky Court
2
Calgary
Apt. P AMEC Dev
Terrace Bldg Bldg Tower Court Fourth
P
Bow Parkade Brookfield Telephone Hanover P Police
Place
Mountain
Prov.
Centre P Police
Place 10 - West Service P P
4 Street S.E.
Place Apartments Intact Place Place Remand
Mall
5 Street S.E.
Gardens of Appeal Place - East Building Parking
Place Site Calgary Harley P Court (Apt.)
Landlord: Centron
Courts Hotchkiss Structur
Historic Court Rocky Developments
Public
Gardens
Library
Nexen Assoc.
Barclay
Centre
Centre
Dominion
Pentland Life Sierra of Appeal First Future Telus Telus Anglican City P BJ’s
Northland Sandman 840 John J. TELUS Rick’s Firefighters
Place Place Hotel 7th Ave.
Atrium
Plaza P Place Bowlen 444
Seventh
Canadian Development P Bldg Bldg Sky P Cathedral Mountain
Police P Floors:
Auction P 14Calgary
Hostel
Gym
Apts. Bldg Plaza P
Centre Site Bow Parkade H.Q.
LRT
Building Area: 300,000 sf
LRT LRT LRT LRT LRT LRT LRT LRT Ave. FloorLRT Plate: 23,3507 Avenue
sf S.E.
O’Neil Garden Iveagh TD Canada
Central Est. Completion: n/a
Tower Tower Nexen Guinness Elveden House House Encor
707 Fifth City Trust Dome Devonian Stephen United P
Anchor Tenants: n/a
Hyatt Hotel
Apts. TV Tower Tower Gardens Avenue Church P Telus Convention
9 Street S.W.
Apts. Tower House Place
Century Watermark Holt Place The Centre Olympic
Gardens Tower Renfrew Bay North
Western Strategic Plaza City
Eagle Bldg
The Core Bank of Winner
St. Louis
The Core Home Lancaster Dominion
University of Calgary Ramada Union Centre Barron Hudson Hall P
Calgary
P Petrofina P Bldg. P Shopping Shopping
Tower Bldg. Montreal Dept. Bank
East Village
Downtown Campus Building Retail Block
Bldg.
Hotel HIst Bldg Store Bldg. P Place
8 Avenue S.W. Stephen Avenue Mall 8 Avenue S.E.
Phase 8IIAvenue S.E.
3 Stampede Station,
Municipal
Future Hollingsworth Gas
P Mixed Use
Eight West Century
Century Panarctic
The First North
635 Plains
Shaw Calfrac
HSBC
Bldg. Royal Building National Retail
Alberta
Hotel Retail Burns
Bldg. Landlord:Hillier Artis REIT Orange
Park Place Taylor Eighth Bldg. . Retail Telus Convention Calgary Epcor P Lofts
Development Garden Plaza Building Alberta Place Western 8th Ave. Midstream Plaza
Avenue Bank CIBC
Bank Building Marriott
Hotel
Centre Public
Center for
Bldg. Floors: 19
Canadian Place Place
West
Eighth
Bldg Tower South Building
Building Area: 315,400 sf Murdoch
Manor
Continental APS Centennial
Avenue
Place
BankersHall Bankers
Grain
Exchange
Glenbow the Performing
P
Edward’s
P
Ave. Centre
Floor Plate:
King
22,600 sf
P City of Calgary P P West East P The Edison Le Germain Place
Apt. Bldg.
Electric Sub- South Parkade East Court Museum Arts Est. ofCompletion:
Hope Edward
Hotel
n/a
Commisionaires
9 Avenue S.W.
station # 1
9 Avenue S.E.
Anchor Tenants: n/a 9 Avenue S.E.
P
6 P P P Gulf Canada Square West
Penn West Plaza
East
Palliser Future
Dev.
Calgary
Tower
Future
Dev.
Palliser
One
Teck
Place P 303 -
9th Ave
P
Future Development Site
2
Hotel
C.P.R. 1 Site
Tower Centre
Site
C.P.R.
Keynote 4
P P Mountain
City Centre Parkade Mount
4
Canada
Retail Place 10 Place 10 Palliser
Future
Landlord: Triovest Realty
Sprint
999 Equipment Royal
Development 8th St. Coop
P Retail P Alberta Boot Co. West East P P P P South
Site
House
P P Floors: 18
10 Avenue S.W. 10 Avenue S.E. Building Area: 340,000 sf Future Development Site
Ave. Floor Plate: 20,900 sf
Condo
Tenth
Kipling
Retail/
Annex
Hudson
Kipling
Macleod Trail
3 Street S.E.
1 Street S.E.
P
Demcor
Apt.
Astoria Mark on Rest. Avenue The
P
707
10th Ave P
Bottle
Depot Square Centre 10 Butcher Block
Rest. & P P MacCosham
Block Bromley Square
Carbon MEG Future The
P
Alberta
Trade Self
409 10th
Ave.
Est. Completion: n/a
5 Street S.W.
Retail Copy Place Brownstone
4 Street S.W.
6 Street S.W.
Tenth House P Dev. Sit Storage
Anchor Tenants: n/a
7 Street S.W.
Cooperblok
1 Street S.W.
8 Street S.W.
9 Street S.W.
Office
2 Street S.W.
Centre Street
Centre
Sunrise P
902 Joffre Lewis 11th Avenue Paramount Mustard
Retail Corner Square 1015 Genco The Building Retail Clennan Mustard 134 - 11th Louis Pilkington Abugov The
P 11 Ave.
Block P Glenbow P Retail Place 5/5 4th St. Place P The Lofts Place Square Seed Seed P Ave. S.E.
Braemar Ribtor I Ribtor II
P Kaspar Biscuit
Building Retail Vintage I Building
5
Vintage II Bldg. Blk. Coyotes
The Paserium Block
11 Avenue S.W. 11 Avenue S.E. 11 Avenue S.E.
P
4
Fairmore Sport Future
P Atco
P Roberts 525 P Future Office Sandstone P
Olympic Way S.E.
Atco Retail Swap Atrium on
Retail
IBM
1108 - 4th Street SW
5
Centre I Bldg. Block 11th Ave. Dev. Site P 333 - 11th 301 - Development School Grandel
Centre II Bike Shop 11th B ta Future Bldg
Retail 11th Ave Al Arriva
P
IBM s
an dg
Development
P
Site
Landlord: Genco
Safeway A Tr Bl Keynote
Future Dev. Site
Dominion Barnhart
Lorraine
Block Parkside Citadel Sam 1122 4th Lacey Can-am
Manhattan
Site Future Future Development
Place Xenex P Foundation Place West Castello Livingston St. SW Court Bldg.
Masonic
P IBM
Lofts Development P Development Future
Floors: 13
Condos Bldg Bldg. C Office Dev. Site
Temple Site Site
Building Area: 186,600 sf
12 Avenue S.W. 12 Avenue S.E. 12 Avenue S.E.
Ave. Floor Plate: 15,400 sf
Petrowest Sutton Place Renoir Stonehaven Marlhurst Exud
P
1201-5 St
Memorial Park The Rest
Retail Centre
Retail Est. Completion: n/a
Apt.
Apt. Twelve P
Plaza Plac Came S.W. Seville Beltline Hotel P
Suites Condo Library P Anchor Tenants: n/a
5 Street S.E.
Apt. Helene Pool Esso Future
Calgary Central Arts
P Sheldon
Memorial
Future Gas Development Calgary Exhibition Calgary Exhibition Calgary Exhibition
Board of Chumir Development Station
Cambridge Health Centre Park & Stampede Grounds & Stampede Grounds & Stampede Grounds
Site
Ranchman’s
Future Dev.
The Adair
Retail
Education Hull Apt. Site Victoria
The Estate Future
Club
Gate
Block
P Apt. Estates Apt. Apt. P
Radio
Prestige Apt. Colonel Park Development Square
Apt. Condo
Belcher Estates Site
Rivera
13 Avenue S.W.
Horizo Aldrin Van St. Elizabeth Canadian Apt. Centra Wexford Place P
Prada
Apt. Colours
Apt.
13 Avenue S.E.
Bernard
3 6 999, Phase II
Landlord:
13 Avenue S.E .
Triovest Realty
Congress
P Park 300 Apt.
Barclay
Square
Stratto Lougheed Park Callebaut
Exeter Square
Apt. Apt. House Helden
P Church Blood Moxam Birkenshaw Apt Towers Apt.
Place P P
Oak Apt. House
Floors: 13 Calgary Exhibition
P
No
Bldg. Services Church Stampede
Retai
Future
Retail
Calgary Exhibition Calgary Exhibition
Square
Union
Station
Sherman White-Wain- Yellowstone Paris
Development
Site Retail Condo Retai Nuera Building
& Stampede Grounds Area: 224,000 sf Grounds
& Stampede & Stampede Grounds
rendering Ave. Floor Plate:
Landing Wesley Pallisades Apt.
Apt.
Dorchester Square
Office
Best Western
Hotel Condos United
Oaks Apt.
Apt. Chelesa
Beulieu
Gardens P Apt. Hill Apt. Rosewood
Estate
Apt.
P Apt.
Scenic Park &
Polo Terrace Condo Apt.
16,800 sf
Findlay
Tower Church Apt. Place Playground Balmoral Est. Completion: n/a
The
14 Avenue S.W.
Manor
14 Avenue S.E.
available Anchor Tenants: n/a 14 Avenue S.E.
Trump
Lincoln St. Moritz Gardens Haultain Haworth Estates
Darlington
Mount
Ashwood
Full Colonial Apt. Apt. House Apt.
Condo
Evergreen Apt. Cypriana
Office
Avenue
Apt. Granada P Sasso
o
P Church
Arms
House Centro Towers Beltline Tower Apt. Apt. Richmond P
nd
M-tech
Apt.
Gospel Royal Apt.
P The Towers P Commissary
Retail
Apt.
Sony
Estates
Office
The
Co
Diplomat Apt. Apt. Coronation Apt. Condo
Church Place
P P P Place Hath Away Future
Grandville Calgary Exhibition
Madison Place Apts Development
Stampede
Westbury House Roundup
The Laurekka & Stampede Grounds
Chocolate
Centennial Apt. Dunhill Kingston Alberta Manor Court Carlyle Ashbury Site
Condos
Emerald Stone Kildare House Apt. Apt. Apt. Apt. Condo Apt. Retail The MacKenzie Condo Alex Vetro Centre
Apt. Gas Apt. Apt. Estates Apt. Towers Apt. Apt. Condos Walker Retail
Condo Apt. Church Condo
Retail Apt.
Hargrave House
15 Avenue S.E.
LRT
15 Avenue S.W. Saddledome RS Parking
Panorama Rose & Randel House Executive Office Apt. Alpha
Chateau Sonesta Apt. P
E.
Grace Apt. The Pillars Condo P P
Apt.
P
Apt.
The Montana
Trail S.E.
The Residences of Court Apt. House Crown House
e Trail S.
Manor Savoy Apt. Falls The Manor Centre
Condo
1520 4th St.
Mount Royal Future Condo Conservatory 15
Dev. Queenswood Condo P Iona Superior Paint Office Car P
Apt. Funeral Building Rest. Scotiabank
Retail Rental
P
Agricultur
Office / Home Park
Blockbuster
Retail National Church Saddledome
Mt. Royal Retail The Courtyard
P Apt. Mt. Royal
Office/Retail
Apt.Apt. Block Retail 17 Avenue S.E.
P Village
Centre Apt. Apt. Retail
Apt. Aurora P Stampede
Bldg Calgary P
College
Retail
Office
Lane
16 Avenue S.W. Retail Retail Economy Stamp Corral
Retail
Anticipated Completion
Office
Retail Glass Centre of
Devenish Bldg. Thomkins Park Main Vet Retail P La Chaumiere Positive Elbow River Casino
Retail Funeral Rouleauville
Retail Shell Opus
Street Apt. Home Notre Dame Living
Station Place Square
17 Avenue S.W.
Calmar Retail Shoppers
Retail Stratford Towers
Pending Corral Trail S.E.
High Retail Future Bank Western Canada
Apts. Retail Retail Drug Mart
Street Dev. of
House Montreal High School Fire HallGraph FOUR
HISTORICAL DOWNTOWN OFFICE ABSORPTION
1,600
1,400
1,200
1,000
800
600
400
200
0
Absorption (000's sf)
(200)
(400)
(600)
(800)
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Class A/AA 150,619 (386,460) 1,208,884 53,141 (353,265) 397,059 72,310 (167,350) 224,141
Class B (298,043) (172,839) 92,659 (338,892) (11,534) (25,370) (31,381) (147,531) (40,016)
Class C 26,658 (18,156) 21,133 (26,730) (52,035) 45,431 21,461 (52,905) 20,843
Quarterly Absorption All Classes (120,766) (577,455) 1,322,676 (312,481) (416,834) 417,120 62,390 (367,786) 204,968
Graph FIVE Average Net Rental Rates, All Classes
2012 - 2018 YTD
AVERAGE HEADLEASE NET RENTAL RATES PER SF, ALL CLASSES
$50.00
$45.00
$40.00
$35.00
$30.00
$25.00
$20.00
$15.00
$10.00
Net Rate per sf
$5.00
$-
2013 2014 2015 2016 2017 2018 YTD
Class AA Net Rent Class A Net Rent Class B Net Rent Class C Net Rent
Graph SIX Average Operating Cost per sf
AVERAGE OPERATING COSTS PER SF
$25
$20
$15
$10
$5
Cost per sf
$0
2012 2013 2014 2015 2016 2017 2018
Class AA $19.21 $21.23 $22.60 $23.58 $23.67 $22.79 $22.86
Class A $17.60 $18.76 $20.25 $21.54 $21.51 $20.77 $20.27
Class B $15.43 $16.22 $18.44 $19.38 $18.96 $17.79 $16.82
Class C $14.60 $14.50 $16.07 $16.74 $16.94 $16.89 $16.46CONTACT INFORMATION
OFFICE ADVISORY TEAM
Donna Lea Banks Josh Hamill Gary Jones Willem Thoma
403.571.6018 403.539.0889 403.571.8081 403.539.0894
dbanks@cresa.com jhamill@cresa.com gjones@cresa.com wthoma@cresa.com
Nicole Bennett Damon Harmon, CPA, CGA Josh Manerikar Michael Yue
403.258.1872 403.571.8221 403.571.8227 403.571.8083
nbennett@cresa.com dharmon@cresa.com jmanerikar@cresa.com myue@cresa.com
Jessica Downie Adam Hayes Kendra Pinder
403.537.2393 403.571.8222 403.571.8085
jdownie@cresa.com ahayes@cresa.com kpinder@cresa.com
John Engbloom Dan Houston Adam Stewart
403.571.6016 403.539.0893 403.590.5704
jengbloom@cresa.com dhouston@cresa.com astewart@cresa.com
INDUSTRIAL ADVISORY TEAM
Greg Albright David Miles Donna Lea Banks
403.571.8223 403.571.8088 403.571.6018
galbright@cresa.com dmiles@cresa.com dbanks@cresa.com
PROJECT MANAGEMENT ADVISORY TEAM
Janet Hewitt Syeda Ahmad
403.571.6019 403.571.8082
jhewitt@cresa.com sahmad@cresa.com
Cresa Cresa is an international corporate real estate advisory firm that exclusively represents tenants and specializes in the delivery of fully integrated
real estate services, including: Transaction Management, Project Management, Strategic Services, Corporate Solutions, Site Selection, Lease
606 - 4 Street SW, Suite 1400
Calgary, AB T2P 1T1 Administration, Capital Markets, Mission Critical Solutions, Relocation Management, and Facilities Management. For more information, visit
403.571.8080 www.cresa.com
Even though obtained from sources deemed reliable, no warranty or representation, express or implied, is made as to the accuracy of the information herein, and it is subject to errors, omissions, change of
price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals.
All material in this publication is, unless otherwise stated, the property of Cresa Alberta. Copyright and other intellectual property laws protect these materials. Reproduction or retransmission of the
materials, in whole or in part, in any manner, without the prior written consent of Cresa Alberta is strictly prohibited.You can also read
