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In The News

First Capital stocking up on Calgary Beltline property
Thursday, 26 April 2018

The Mount Royal West mixed use development in Calgary.

First Capital Realty (FCR-T) is accumulating buildings in Calgary’s Beltline district, just outside the downtown core, for potential future redevelopment into large, mixed-use projects. 

One of the properties in First Capital’s portfolio is Mount Royal West, a mixed-use development one block north of 17th Avenue. A three-storey building nearing completion will house an Urban Fare store at street level, a Canadian Tire store on the second level, and medical office use on the top level.

Calgary Beltline “the place to be”

“We think the Beltline is the place to be in the next 20 years for mixed-use development,” says Huizinga. “We’re taking positions that offer decent holding income, but more importantly provide opportunities for future redevelopment.

“We’re obviously retail-focused, but we recognize that urban development increasingly will be mixed-use and so the intent is then to have one or two levels of commercial and residential above. That’s the program we think makes a lot of sense and one that the city is fond of promoting.”

See Full Article: Source

Mario Toneguzzi, based in Calgary has 37 years of experience as a daily newspaper writer, columnist and editor.

 

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CN Rail Mulls Real Estate Sales to Raise Cash for Network Revamp
Thursday, 26 April 2018

Canadian National Railway Co. will consider selling additional real estate properties in Montreal and Calgary

Canadian National Railway Co. will consider selling additional real estate to free up cash that can be plowed back into its network.

Properties in Montreal and Calgary are among the assets that Canadian National could divest in the coming months, interim Chief Executive Officer Jean-Jacques Ruest said Tuesday in an interview in Toronto. The company has already sold about C$150 million ($117 million) of “non-core” assets this month, Chief Financial Officer Ghislain Houle told analysts Monday.

Canadian National is looking to sell “primarily real estate,” Ruest said Tuesday in an interview in Toronto after the company’s annual meeting. “They’re good real estate assets but they don’t generate revenue carloads, they don’t move freight. So we take that money, cash it out, and deploy it out west where we can move more trains.”

Ruest declined to specify which assets the company would consider selling, or say how much they could fetch.

 
For the full article see: Source

Kristine Owram and Frederic Tomesco

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Energy Star Building Certifications Now in Canada
Tuesday, 10 April 2018

The first seven building sectors that are eligible for ENERGY STAR certification are: commercial offices; kindergarten to Grade 12 schools; hospitals; medical offices; senior care communities and long-term care facilities; food retail; and ice/curling rinks.

Natural Resources Canada has taken the next step in Canada’s push to promote a low carbon economy, launching its ENERGY STAR certification program for commercial and institutional buildings on March 26.

“ENERGY STAR has long been a trusted label to help make smart decisions about energy use,” said Natural Resources Canada spokesperson Catherine Leroux. “Now, building owners and managers can receive recognition for the superior energy performance of their buildings and they can showcase this by demonstrating they have met an ENERGY STAR-certified level in energy management.”

The program uses ENERGY STAR Portfolio Manager, a free, interactive energy management and benchmarking tool which allows a building owner or energy manager to track and assess energy and water consumption across a portfolio of buildings in a secure online environment. The tool itself was launched in Canada in August 2013.

“Energy benchmarking is the ongoing review of a building’s energy consumption and performance in comparison to other buildings of that type across the country, other buildings in an organization’s portfolio, and that particular building’s energy performance historically,” said Leroux.

“Commercial building energy performance benchmarking is a foundational element of an organization’s energy management strategy because you can’t manage what you don’t measure.”

The first seven building sectors that are eligible for ENERGY STAR certification are: commercial offices; kindergarten to Grade 12 schools; hospitals; medical offices; senior care communities and long-term care facilities; food retail; and ice/curling rinks. Natural Resources Canada will add additional building types over time to a maximum of 21 by 2026.

 

For Full Article, see Source.

Steve McLean, is a veteran writer, reporter, editor and communications specialist

CORE Commercial Real Estate is your local expert to evaluate existing leases, search all available properties and find suitable office space for your business.

We are knowledgeable in market trends and will work closely with you to ensure your lease or purchase will be the best fit for your budget.

 

 

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True North expands Alberta Infrastructure portfolio
Thursday, 29 March 2018

True North Commercial REIT

True North Commercial Real Estate Investment Trust is pleased to announce....

it has executed the following leases: (i) a lease renewal with Alberta Infrastructure at 855 8thAvenue SW, Calgary, Alberta (the "Calgary property"), totaling 48,046 square feet; and (ii) effective February 1, 2019, a new lease with Alberta Infrastructure at 13140 St. Albert Trail, Edmonton, Alberta (the "Edmonton property") totaling 60,000 square feet.

With the addition of these leases, the weighted average remaining lease term for government tenants in the REIT's Alberta portfolio is 5.2 years.  In addition, the REIT has also secured mortgage financing at the Calgary property for an additional 5-year term at an interest rate of 3.96%.

"With our strategic focus of securing government and credit-rated tenants, we are delighted that Alberta Infrastructure is extending its occupancy at our Calgary property while increasing its presence at our Edmonton property" said Daniel Drimmer, the REIT's President and Chief Executive Officer. "The REIT's Alberta portfolio is well positioned as it is currently 97.3% occupied with 88.8% of its revenue generated from the Province of Alberta and credit-rated tenants."

855 8th Avenue SW, Calgary, Alberta

This building is a 11-storey office building with approximately 75,700 square feet, 43 underground parking stalls and is 97.4% occupied. 72.4% of the property's gross revenues are generated by Alberta Infrastructure and credit-rated tenants and it is well situated at the southeast corner at the intersection of 8th Avenue SW and 8th Street SW. 

For Full Article, See True North Commercial Real Estate Investment Trust Source

CORE Commercial Real Estate is your local expert to evaluate existing leases, search all available properties and find suitable office space for your business.

We are knowledgeable in market trends and will work closely with you to ensure your lease or purchase will be the best fit for your budget and is in the best location..

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All systems go for privately-owned Plus-15 bridge
Thursday, 29 March 2018

Located along 9th Avenue S.W., it will connect the two imposing towers of 11 and 20 storeys that hold 635,000 square feet of office space

Construction has begun on what will be Calgary’s longest, privately owned Plus-15 walkway, without crossing a city street.

Located along 9th Avenue S.W., it will connect the two imposing towers of 11 and 20 storeys that hold 635,000 square feet of office space plus main floor retail, commonly known as Penn West Plaza, with Gulf Canada Square.

It is using the original design by Abugov Kaspar Architects that sweeps in a graceful curve to take pedestrians into the food court area of Gulf Canada Square and on into Bankers Hall and the maze of Plus 15 downtown connectors.

Construction of the new walkway by EllisDon with Concept Consulting acting as project manager is most welcome as a sign of downtown confidence by Morguard. It has taken some time, since Abugov Kaspar created the design before Morguard purchased the towers, and then it had to enter into negotiations with the city for development and building permits, with Gulf Canada Square for the link-up, Calgary Parking Authority to cross the circular ramp from 9th Avenue, and CP Rail that has a street-level vehicle entrance to its railway shed.

The new bridge is a major undertaking by Morguard, a fully integrated real estate company that owns, manages and invests in high-quality, well-located, geographically diversified projects across North America.

Currently, its total assets owned and under management are valued at $21.2 billion, and the company has a significant presence in this city.  Its 34 office, industrial and retail buildings in the Calgary area total for than three million square feet, plus residential rental complexes with a combined total of 600 units.

For Full Article, see Source.

David Parker, is a veteran writer with the Calgary Herald

CORE Commercial Real Estate is your local expert to evaluate existing leases, search all available properties and find suitable office space for your business.

We are knowledgeable in market trends and will work closely with you to ensure your lease or purchase will be the best fit for your budget and is in the best location..

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Truman begins construction
Monday, 26 February 2018

the office component of the project will most likely be constructed mid-stream of the entire development and will be a campus-style area of space.

Truman begins construction of Calgary's West District  Calgary-based developer and builder Truman Development Corp has begun construction of its master-planned community in the southwest part of the city that will feature a Central Park, a main street, almost 1.7 million square feet of office and retail space and thousands of new homes spread across a 100 acre site.  

"There's about 1.295 million square feet of office space which will be brought on, obviously, when things turn around but in the later phases.  And we have about 382,000 square feet of retail" said Trulina. 

Trulina said the office component of the project will most likely be constructed mid-stream of the entire development and will be a campus-style area of space.

The family-owned Truman company has been building in Calgary and surrounding areas for more than 35 years.

Mario Toneguzzi , Writer based in Calgary has 37 years of experience as a daily newspaper writer, columnist and editor.

See Full Article: Source

What does this mean for you, the tenant? 

  • CORE Commercial Real Estate does not represent landlords, nor do they have a vested interest in placing you into any particular building.   Not every business wants or needs to be located in downtown Calgary.  We will be watching this new development with great interest.
  • We are focused on meeting your needs and can assist YOU in your negotiations for leasing that perfect space for your business.
  • Let us know your requirements for that perfect office space and we will ensure we consider all office spaces, new and existing. 
  • Remember, we charge the landlord to exclusively represent YOU! 
  • Work with us to negotiate solely on your behalf.   

Contact CORE today for a lease that best represents your interests. 

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Calgary Downtown Office Market Overview
Monday, 5 February 2018

Downtown Calgary's vacancy rate remained steady over 2017 and is approximately 26%.

Calgary's Downtown Office Space Vacancy Rates Remain High  Calgary's downtown office space shows that the vacancy remained relatively steady over the course of 2017. 

Although Calgary's office market started and ended the year with a vacancy rate of around 26%, it means that almost 12 million square feet of office space remains vacant.

On average, one employee takes up approximately 350 square feet of space.  To return to a balanced real estate market, which is approximately10% vacancy, downtown Calgary would need to absorb almost 8 million square feet of office space or more than 22,000 new jobs.

The recent announcement of Cenovus cutting 15% of their workforce, or up to 700 employees, indicates that "big oil" budget cutting isn't over.  The first few weeks in January saw almost 300,000 sq ft of negative absorption.*

Although Calgary is seeing more diversification, the oil industry is still driving the downtown office market.

*net absorption is the amount of space leased within a market or sub-market over a period of time.  It represents the demand for office space.   As demand for office space goes up - vacancy decreases and absorption is positive.  As corporations downsize and previously occupied space comes to market - vacancy increased and absorption is negative.

See Full Article: Source

 

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Shaw Offering Buyouts to 6,500 Staff
Monday, 5 February 2018

haw Communications is launching a massive voluntary buyout program as part of a restructuring the company calls a "total business transformation" that aims to re-focus and streamline its operations.

Shaw Offering Buyouts to 6,500 Staff Shaw Communications is launching a massive voluntary buyout program as part of a restructuring the company calls a "total business transformation" that aims to re-focus and streamline its operations.

The cable and telephone company confirmed the restructuring plan in a press release Tuesday after BNN reported the buyouts, citing an internal memo.

In a statement, Shaw said approximately 6,500 employees have been offered the package - including workers at Freedom Mobile which the company bought in 2016.

Shaw may impose further restructuring efforts, including layoffs, after the completion of its buyout program, according to internal documents obtained by BNN.

Tara Weber is a BNN columnist.

For Full Article, See Source

What does this mean for you, the tenant? 

  • Dependant on how deep the cuts are with Shaw, this could mean that more office space will be put onto the market for leasing or subleasing. 
  • For the forecasted 650 layoffs, this will mean that approximately 150,000 sq ft of space will become available over the next 18 months.  It is also our understanding that with the restructuring, a consolidation of office space may occur.  This may mean that more space will come available and further increase the vacancy rate.
  • Landlords are making concessions to place tenants into their buildings due to the high vacancy rates in all areas of Calgary. 
  • This means that you are in the driver's seat when it comes to commercial office leasing for your business!
  • CORE Commercial Real Estate does not represent landlords, nor do they have a vested interest in placing you into any particular building. 
  • We are focused on meeting your needs and can assist YOU in your negotiations for leasing that perfect space for your business. 
  • Remember, we charge the landlord to exclusively represent YOU! 
  • Don't have the landlord do both sides of the lease - how can they possibly represent their interests and your interests under one transaction?  
  • Work with us to negotiate solely on your behalf.   

Contact CORE today for a lease that best represents your interests. 

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Calgary Office Towers Drop in Value
Saturday, 6 January 2018

The slide in the overall value of all office towers continues, even as two new ones — the Manulife building and Brookfield Place — have opened in the downtown, adding a combined value of more than $850 million to the city’s tax rolls.

Economists tell us the Alberta recession is over, but there are some days it sure doesn’t feel that way.

Thursday would be one of those moments, as the City of Calgary released its annual property assessment report, highlighting the continued deterioration in the value of downtown office buildings.

But among the shimmering highrise office towers, home to Canada’s largest energy companies, the buildings continue to shed value as the downtown office vacancy rate sat at a miserable 27.7 per cent by the end of last year.

The slide in the overall value of all office towers continues, even as two new ones — the Manulife building and Brookfield Place — have opened in the downtown, adding a combined value of more than $850 million to the city’s tax rolls.

“The ball now is in the tenant’s court.”

Times have changed and the economic recovery is slowly happening. But when it comes to Calgary’s downtown, the rebound can’t arrive fast enough.

Chris Varcoe is a Calgary Herald columnist.

For Full Article, See Source

What does this mean for you, the tenant? 

  • Landlords are making concessions to place tenants into their buildings. 
  • This means that you are in the driver's seat when it comes to commercial office leasing!   
  • It is now possible, and more affordable to your P&L, to move into one of Calgary's coveted downtown addresses to conduct your business. 
  • CORE Commercial Real Estate does not represent landlords, nor do they have a vested interest in placing you into any particular building. 
  • We are focused on meeting your needs and can assist YOU in your negotiations for leasing that perfect space for your business. 
  • Remember, we charge the landlord to exclusively represent YOU! 
  • Don't have the landlord do both sides of the lease - how can they possibly represent their interests and your interests under one transaction?  
  • Work with us to negotiate solely on your behalf.   

Contact CORE today for a lease that best represents your interests. 

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Cenovus has 900,000 sq. ft. on Calgary sublease market
Friday, 22 December 2017

Calgary-based energy giant Cenovus has nearly one million square feet of office space on the sublease market, including the iconic Bow Tower and the new but unoccupied Brookfield Place skyscraper, RENX has learned.

Calgary-based energy giant Cenovus has nearly one million square feet of office space on the sublease market, including the iconic Bow Tower and the new but unoccupied Brookfield Place skyscraper, RENX has learned.

Company spokesperson Brett Harris confirmed the sublease space includes both occupied and unoccupied space Cenovus currently has in Calgary to the tune of about 900,000 square feet.

Anchor tenant at new Brookfield Place

Cenovus, with just over one million square feet, is the anchor tenant in the new 56-storey, 1.4-million-square-foot Brookfield Place skyscraper. Initially it was supposed to move into the building in the first quarter of 2018.

Downtown Calgary vacancy 25.3 per cent

According to Gigliuk’s research, the total amount of sublease space on the market in downtown Calgary appears to have peaked at year-end 2016 when there was 3.9 million square feet of sublease space which made up 40.9 per cent of all vacant square footage. Today there is close to 3.7 million square feet of sublease space on the market, which makes up 32.8 per cent of all vacant square footage.

The overall vacancy rate for the downtown is 25.3 per cent at the end of this year, compared with 22.6 per cent at the end of 2016 and 14.6 per cent at the end of 2015.

The total vacant space of 11.2 million square feet is a record.

Total inventory for the Calgary downtown office market is 44.4 million square feet with just 422,000 square feet under construction.

In 2016, the market experienced negative absorption of 2.87 million square feet but that rebounded in 2017 with positive absorption of 305,220 square feet.

Mario Toneguzzi, based in Calgary has 37 years of experience as a daily newspaper writer, columnist and editor. He worked for 35 years at the Calgary Herald covering sports, crime, politics, health, city and breaking news, and business. For 12 years as a business writer, his main beats were commercial and residential real estate, retail, small business and general economic news. He nows works on his own as a freelance writer and consultant in communications and media relations/training.

For the full article see: Source

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Oil Sands Job Cuts Continue as Cenovus Axes 15% of Workers
Monday, 18 December 2017

Cenovus Energy Inc. will shed 500 to 700 jobs, out of about 4,200 positions, Brett Harris, a spokesman for the Calgary-based company said.

Cenovus Energy Inc., which has been selling assets to pay off debt from a major oil-sands acquisition, plans to cut about 15 percent of its workforce as the new chief executive officer steps up cost cuts.

The Canadian producer will shed 500 to 700 jobs, out of about 4,200 positions, Brett Harris, a spokesman for the Calgary-based company said.

Alex Pourbaix, who took the helm about a month ago, also is shuffling the company’s top ranks, with Chief Financial Officer Ivor Ruste and two other top executives departing. The announcements on Thursday came as part of Cenovus’s 2018 budget report, which detailed a capital-spending program and oil-production forecasts that trailed some analysts’ expectations.

Source: Bloomberg

http://bit.ly/2BETNob

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Majority of millennials choose their jobs based on the office space
Monday, 18 December 2017

when the time comes for a new job, 71% of millennial respondents thought that “workplace design and environment” was just as or more significant than where the office is geographically.

Capital One’s Work Environment Survey— carried out by Wakefield Research— was recently released, showing that office configuration and format holds a whole lot of weight for the American worker: when the time comes for a new job, 71% of millennial respondents thought that “workplace design and environment” was just as or more significant than where the office is geographically.

According to the research, these were among the things people wanted the most when it comes to their workplaces: 62% said natural light, 43% said furniture and areas that are “reconfigurable” in a pinch, and 44% wanted to see “creative imagery” and art.

Confused about what these young people want? Here are the top three items this group listed “when asked to prioritize on-site benefits:” 33% said fitness and health centers and initiatives,  36% said areas to gather and decompress, and 39% craved food and drinks that were good for them.

Employers, take note: people are actually paying attention to office layout— whether or not a potential hire likes your space might even have an impact whether or not they join your company.

Jane Burnett is a reporter for Ladders based in New York City. She is a former Reuters Assistant Virtual Reality Producer, where she produced 360° videos and slideshows on the company’s first-ever team of its kind. Throughout college, she was a four-summer intern at CNBC Global Headquarters through the Emma Bowen Foundation for Minority Interests in Media. She also ran a fashion blog and studied Communications and Sociology while abroad at the American University of Rome. Jane is a May 2016 graduate of the American University School of Communications in Washington, D.C.

For the full article see: Source

 

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Artis Real Estate Investment Trust
Monday, 18 December 2017

Artis Real Estate Investment Trust (TSX: AX.UN) ("Artis" or the "REIT") announced today that it has sold Quarry Park Portfolio, a portfolio of three office properties located in Calgary, Alberta, and entered into an unconditional agreement to sell Millennium Centre, an office property located in Red Deer, Alberta.

The Quarry Park Portfolio comprises three office properties located in the Quarry Park commercial/residential area of Calgary, Alberta, totaling 282,327 square feet of gross leasable area. The portfolio was sold for $98.0 million ($347 per square foot). The transaction closed on September 15, 2017.

Millennium Centre is a 148,871 square foot office property located in Red Deer, Alberta. The sale price for this property is $33.0 million ($222 per square foot). This transaction is expected to close on December 1, 2017.

"The sale of these assets further reduces our exposure to the Alberta office market, which became a strategic initiative for Artis since the downturn in oil prices," said Armin Martens, President and Chief Executive Officer of Artis. "These sales are at prices that compare well to our internal fair value of approximately $15 per unit, and will provide us with capital to recycle into newer generation real estate in our other target markets, further improving the diversity and resiliency of our overall portfolio."

For Ful Article, see: SOURCE Artis Real Estate Investment Trust

 

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Cominar to Sell Non-core Assets to Slate
Friday, 8 December 2017

Cominar REIT is selling $1.14B in non-core market assets to Slate Asset Management. It also intends to sell up to $1.5B in core market properties in 2018.

Cominar Real Estate Investment Trust (CUF.UN-T) will sell its entire non-core market portfolio, 97 properties valued at $1.14 billion, to Slate Asset Managementin one of the largest commercial real estate transactions announced in Canada in 2017.

Citing a strong Canadian real estate market, and what a company release calls “meaningful interest for a number of properties”, the trust also announced it intends to review and sell up to $1.5 billion in assets from its core market holdings.

Cominar expects to finalize this review by mid Q1 2018 and to sell the properties by the end of 2018.

Don Wilcox is a veteran editor and journalist with three decades of experience in print and online news, including 20 years at the Ottawa Sun. Most recently, he was the Sun’s Sr. Online Editor. Don has also been a part-time professor at Algonquin College, teaching digital writing and social media in the Mobile and Social Media Management program.

http://bit.ly/2ySyoCy

 

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Apache Joins The Exit From Canada's Energy Sector
Thursday, 17 August 2017
Apache office space contributing to downtown Calgary's high vacancy rates

Apache joined the growing list of companies that have sold out of Canada's energy sector. The company announced that it will complete a staged departure from Canada by selling its Alberta and B.C. assets to Paramount Resources Ltd.

Earlier this year both ConocoPhillips and Royal Dutch Shell announced that they were selling their oil sands holdings and other Canadian assets to Cenovus Energy and Canadian Natural Resources Ltd. respectively.

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Downtown Calgary vacancy is at a record high…and moving up
Wednesday, 17 August 2016
Calgary downtown office vacancy is now close to 23% and has surpassed the high of 22% set in the recession of the 1980’s.

Calgary downtown office vacancy is now close to 23% and has surpassed the high of 22% set in the recession of the 1980’s. Even if the price of oil increased dramatically, it would likely take years for the market to absorb all of the space currently on the market and to add to the glut of office space, Calgary has three towers scheduled to complete in the next year and a half which will add an additional 2.4 million square feet to the downtown inventory.

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More job cuts coming for Cenovus in 2016
Wednesday, 17 August 2016
Calgary-based oil company Cenovus Energy Inc. (CVE) will be cutting 440 jobs in 2016 in response to energy price volatility, reports The Calgary Herald. This follows layoffs of 1,500 employees last year, and will amount to an overall reduction of 31 per cent of the company’s headcount since late 2014.

Calgary-based oil company Cenovus Energy Inc. (CVE) will be cutting 440 jobs in 2016 in response to energy price volatility, reports The Calgary Herald. This follows layoffs of 1,500 employees last year, and will amount to an overall reduction of 31 per cent of the company’s headcount since late 2014.

Cenovus has been hit hard by continued low oil prices, reporting losses of $641 million in the last quarter of 2015

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The articles on this website are for information purposes only and may not meet your specific individual real estate needs and are not tailored to your personal or corporate situation. We are real estate professionals only and strongly advise that you obtain independent legal, accounting or other counsel as required for your specific personal or corporate situation. The articles reflect the views and opinions of the CORE Commercial Real Estate Ltd. and that is all they purport to be. While the information herein is believed to be accurate and reliable it is not guaranteed or implied to be so. The opinions are both time and market sensitive. No part of this website may be reproduced, copied, emailed, faxed, or distributed (in any form) without the express written permission of the authors. Everything contained herein is subject to international copyright protection.