New Tower Coming to Town

There's a new office tower coming to Calgary and it's slated to be ready for tenant occupancy by 2016.

Cadillac Fairview Corporation Limited announced the commencement of construction of the Calgary City Centre Phase 1 on April 4. The first phase will include a 36 storey, LEED Gold Core and Shell, premium AA tower totaling 853,032 sq. ft. including a retail podium and five levels of underground parking withover 600 stalls. "Calgary City Centre reinforces Cadillac Fairview's strategy of expanding our core property assets, office and retail, in key urban markets," said John Sullivan, Cadillac Fairview president and CEO in a release. "Through Calgary City Centre and our recently expanded Chinook Centre we are committed to, and investing in the long-term future of Calgary."

The development will be welcome in Calgary's commercial sector, as vacancy in the city remains tight. According to Barclay Street Real Estate Ltd. as of the fourth quarter of 2011, vacancy in the city was at just 5.9 per cent.

"The downtown market experienced an exceptional year; vacancy plummeted to 4.0 per cent from 11.2 per cent year-over-year," a fourth quarter report stated.

Demand for commercial space is also being attributed to Calgary's strong economy according to the Barclay Street report. With GDP growth forecasted at 4.2 per cent for 2011 to 2014 and a fourth quarter 2011 unemployment rate of 4.9 per cent being cited as factors for perpetuating demand in Calgary's office leasing market.

Cadillac Fairview's Phase 1 tower is just the beginning of a mixed-use development located on a full city block at 2nd Street and 3rd Avenue SW (north of Eau Claire Market) that will also incorporate — as well as offices and retail space — a five-star hotel and luxury condominium residences.

"Calgary City Centre is about city building," said Wayne Barwise, executive vice president, Cadillac Fairview. "We are transforming a significant business precinct of the city by connecting four city blocks with three Plus 15 bridges. Our mixed-use development will create a vibrant and active streetscape with office, retail, residential, dining and hotel facilities Additionally, the office building will expand our portfolio and provide state-of-the-art premises for the growth of many of our corporate clients."

Designed by Zeidler BKDI Architects, construction of Phase 1 under prime contractor PCL Constructors Inc., is set to begin in May. Other highlights of the building include adjacency to the Bow River parkway system, a two-storey office lobby with landscaped courtyard, a typical floor plate size of 26,782 sq. ft. and the underground parking, including bicycle lockers and showers.

Cadillac Fairview is behind some of Calgary's biggest projects including the aforementioned Chinook Centre and Market Mall.

Tagged: Calgary Real Estate | Commercial | Downtown | Growth | Uncategorized