Archives from February 2015

 

EDMONTON - Overshadowed by a trio of office towers on the rise downtown is a quieter construction boom as owners renovate and rebrand older buildings to attract and keep tenants in a growing market.

The Ledgeview Business Centre is poised to open as the latest redevelopment.

“It’s a new building from where it was a year ago to today,” said Michael Hungerford, a partner at Vancouver-based Hungerford Properties, which bought the building a year ago.

Crews are finishing renovations at the former Capital Place building, at 9707 110th Street, in time to showcase it to commercial real estate brokers at an open house on March 4.

Click here to read the full article.

February 11, 2015 – With record low interest rates and continued high leasing rates for industrial spaces, an increasing number of Calgary businesses are moving towards buying their own office and warehouse space as an investment into their future. In Calgary’s Meridian/Franklin area, the Nexus Business Centre is attracting a plethora of local businesses seeking new, modern, class-A commercial space in a well-located area. The development is already over half sold since launching last year and will be complete this spring.

Jason Martin, VP of Impact Sales and Marketing, just purchased 2,900 square feet of office space. The 30-year-old consumer packaging goods company is moving into Nexus from space right around the corner in order to be an owner, not a tenant. “It’s exciting because it’s ours,” says Mr. Martin. “That’s always a good feeling. And everything will be new.”

Mr. Martin says he has been looking to purchase office space for many years, but the Calgary market has a limited supply of suitable opportunities. With Nexus, he was attracted to the quality construction, the fact that it’s brand new, offers an elevator, a chance to custom build the interiors, all in an accessible location.

“This is an established commercial hub, but the existing buildings are older and not up to today’s standards,” says Michael Hungerford, whose company, Hungerford Properties, is developing the property. “So we’re bringing in new, high-quality product and seeing a lot of interest.”

For Sean Senos, CEO of True Directional Services, a company that offers directional drilling technology servicing the oil and gas industry, buying at Nexus was the only option that made economic sense. After 5 years of renting, his company bought more than 4,100 square feet for a warehouse bay and office. “With such low vacancy rates in Calgary’s market, rent is expensive,” says Mr. Senos. “Owning for my company means we have more capital to invest in tools and growing the business, rather than throwing money away in rent.”

Even with the downturn in oil and gas, Mr. Senos says rent prices won’t fall along with commodity prices. “It costs us 25% more to rent rather than own. And with owning, we’re in control of the destiny of the business and build equity.”

Mr. Senos was attracted to Nexus because of the location and its proximity to downtown and by the quality of the building. Most of the supply on the market is old, he says, with compromised roofs, insulation or structures. “This was the highest quality building we looked at and the price per square foot was the same.”

With a total of 98,725 square feet of office and warehouse space, Nexus Business Centre offers a large range of sizes. For office users, available space ranges in size between 2,563 – 14,840 square feet. Office space includes 9’ clear ceiling heights, individually controlled heating and cooling per unit and full curtain wall glazing. Warehouse space ranges in size from 3,563 to 7,694 square feet and includes features such as 24’ clear ceiling heights, ability to build-out mezzanine and grade loading with 12’x14’ insulated metal overhead doors.

“This is Calgary’s top selling new industrial condo project because it offers something that is rare in the city - high-quality, affordable and well-located modern office and warehouse condos,” says Collier’s Michael Massing.

For a detailed chart breaking down the financials of owning versus leasing using the Nexus model, please click here: http://hungerfordproperties.com/nexus/ownership

Leasing activity in Calgary’s industrial real estate market in 2014 was the highest it’s been in eight years.

A report by Colliers International in Calgary says there was just over five million square feet of positive absorption – the change in occupied space – last year – the highest yearly absorption since 2006.

Despite the high rate of absorption, only 500,000 square feet of new construction was added to the industrial inventory in the fourth quarter of last year, added the report.

Colliers said the leasing velocity and lower-than-average new construction contributed to produce a lower vacancy rate of 3.82 per cent in the fourth quarter from the previous quarter’s 4.43 per cent.

Click here to read the full article.

Sign Up for Updates

CLOSE