Commercial real estate felt the pinch of a slumping economy in 2016 and Calgary’s suburban office market was no exception.
From headleases – between a landlord and a tenant – to subleases – where a tenant puts some of their excess space on the market – commercial real estate outside the core had its challenges.
“A significant amount of very, very large blocks of vacancies are available on the sublease market and the headlease market, for that matter, and we have not seen a great number of tenants going in to take those spaces,’’ said John Savard, principal, office leasing specialist with Bedrock Realty Advisors Inc.
Suburban office vacancy rose 0.3 per cent during the fourth quarter of 2016 to 22.6 per cent, according to a recent Barclay Street Real Estate report.
As featured in the Calgary Herald this week, Bedrock Realty had the pleasure of helping B&A Planning Group take advantage of the current market and relocate their offices to an entire floor of the prestigious west tower of Penn West Plaza.
Read the whole article by David Parker in the Calgary Herald here.
On Saturday, September 24, the team at Bedrock Realty participated in the Walk for Water, a 5K walk in Chestermere in support of Free the Children. As part of We Day, this charity event helps raise money to build wells in third world countries.
Bedrock’s John Savard recently had the opportunity to chat with on of Calgary’s most prolific business writers, Mario Toneguzzi, about a story he was working on regarding Calgary’s office condo scene. Below is an excerpt from the story, Read the Full Article.
“I start the conversation with my client’s growth plans,” he said. “If they tell me they will most likely be the same square footage in seven years, then I highly recommend purchasing an office condo. It is at the seven-year point that the mortgage paydown is substantial enough – assuming only a minimal asset appreciation – that your return on investment is greater than paying rent.
“If my client’s seven-year plan has it growing its square footage, then a purchase may not be a wise choice. If my client outgrows its condo before the seven-year point, then it has to find new space and put the condo on the leasing or for sale market.”
We are very excited to announce the launch of Bedrock Realty Advisors, Calgary’s newest real estate brokerage specializing in downtown commercial and office space.
“I’m very excited to be able to bring my expertise and knowledge of Calgary’s downtown commercial real estate to this new venture,” says Bedrock’s owner John Savard.
While Bedrock may be new to the Calgary downtown commercial real estate scene, Savard is not – in fact, Savard has been a steady presence in the industry since 1989 when he made the move from Toronto to Calgary.
Since then Savard has worked at numerous commercial brokerages, representing hundreds of clients internationally in their office leasing deals.
“Unlike other brokerages who represent the tenant and the landlord, we represent the tenant only,” says Savard. “We work hard to get them the right space to meet their needs and at a fair price.”
To learn more about Bedrock’s services, Contact Us today!