POV Q3. Downtown and Beltline Office Market Report

Transcription

1 OV Q3 oint of View 0 8 Downtown and Beltline Market Report

2 Market OVERVEW Downtown Market s summer of 08 was three things hot, hazy, and short-lived. No, we are not talking about the weather, we are talking about the market for commercial real estate. We saw an uptick in absorption, increased uncertainty about the future of the market, and an increase in leasing activity that may be short-lived. While the city itself may have seemed sleepy through summer holidays, we just experienced one of the strongest quarters for office leasing since 0. On the surface, 04,968 sf of positive absorption or approximately a 0.4% vacancy decrease may 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. One of the biggest impacts to vacancy figures in Q3 was the anticipation of 30,000 sf of sublease space from Cenovus in the new Brookfield lace - coming to market. Though we cautiously anticipated that this sublease vacancy could flood the market and impair absorption coming into the fall which was endorsed by historical trends showing Q3 as the slowest quarter for leasing (see: Cresa s Q oint of View) our worry was fortuitously misplaced. While Cenovus s space provided a bump in inventory, it was offset by a material quantity of leasing. Excluding the sublease space anticipated in Brookfield lace, which has existed as ghost space for some time, approximately 55,000 square feet of space was leased over the summer. Large, contiguous blocks of AA and A class space were leased by companies from the energy and financial services sectors in the third quarter. Some of these groups moved into the core from suburban, lowering downtown vacancy while pulling tenancy away from other markets; others expanded their existing footprint in the downtown core. Large transactions included: arkland Fuel Corporation BMO Financial Group Sinopec Energy Ltd. Trinidad Drilling Ltd. embina ipeline Corporation CES Energy Solutions Corporation Serafina Energy Ltd. ackers lus Energy Services MLT Aikins LL Telus Aviva What do these transactions say about the market? At first glance, it appears that the market is picking up. Oil prices seem to have stabilized, despite continuing differentials for petroleum products, and we are seeing early signs of economic diversification as firms from outside of the energy sector are moving to or are entering into real estate transactions to facilitate growth. On the other hand, we are not seeing significant quantities of investment dollars entering Alberta from outside of the province, and the growth that we are experiencing looks to be primarily organic in nature. Without access to capital from both local and foreign players, it should be difficult to fill any significant quantity of space in downtown. city needs major projects with real job creation in order to move the vacancy rate downwards at a material pace. That does not mean that we will not continue to see improvement, though. se transactions also speak directly to the characteristics of available commercial real estate in. Of the aforementioned transactions, there was a fairly even split of sublease and

3 Market OVERVEW headlease transactions. re are two easy explanations for the headlease-to-sublease ratio. first is the availability or lack there of of ready-to-go sublease spaces; as the market has matured through the present downturn, the sublease spaces that were completely move-in ready, with reception, appropriate meeting rooms, and other core features have garnered the most demand. remaining spaces, which were typically working floors, lacked the amenities that a single floor tenant requires. second explanation is the age of improvements within many of the remaining sublease spaces. Between the early 000s and 008, when commodity prices boomed, new office space was constructed throughout downtown. Space of that vintage is approaching an age of 0 to 5-years-old, and is outdated with respect to the office designs of today. Now, as tenants search for spaces that do not require their own investment on the frontend of a real estate transaction, landlords are stepping up with turn-key opportunities and major tenant inducement packages to attract tenants. Regardless, between tangible leasing and reduced market slack, we saw a strong quarter for downtown leasing, particularly in the AA and A classes. Let us look at each market class separately: AA Class AA class continues to carry the lowest vacancy, currently sitting at 7.0%. majority of AA class vacancy remains as sublease vacancy, representing two thirds of the available space. Despite the addition of anticipated sublease space, large tenant transactions, and continued merger & acquisition activity, total AA class vacancy stayed flat, in part due to our reclassification of Millennium from AA class to A class. A Class A class segment saw the most leasing in Q3. While it benefited from the Millennium reclassification, some of the largest transactions of the quarter also occurred in the A class, headlined by arkland Fuel in B. B Class B class continues to bleed vacancy, as it has done since 0. flight to quality is very real, and the B class is its greatest victim. Vacancy in the B class now stands at 39.3%. Smaller tenants are exceedingly common in B class buildings, and it is difficult for B class landlords to lease-up large chunks of space with the same frequency that AA and A class landlords are able to. C Class discount class still has an important niche in this economy, providing ultra-low-cost options to tenants who are looking for them. C class vacancy is slightly better than the market average, at 3.84%, and witnessed positive absorption in the third quarter to the tune of 0,843 sf, or approximately a raw 3%. Beltline and Fringe Markets Vacancy in the Beltline continued to trend higher in the third quarter, with the vacancy rate reaching 4.00% after last quarter s rate of.63%. migration of tenants from suburban and the Beltline into downtown continues to drag on occupancy figures. Fortunately for Beltline landlords, we did witness larger tenants from south and north suburban areas move into the Beltline in the third quarter. Beltline continues to function as a central alternative for companies looking to stay out of the core, as it boasts greater access to parking and reduced commute times. Tenants in the Beltline can look for similar rates to those found in downtown, in addition to competitive inducement packages. Downtown s other fringe areas are seeing more competition over space and rates. n Mission, Kensington, and nglewood/ramsay, vacancies between 5,000 and 0,000 square feet are few and far between. At the time of writing this report, each of those three markets only had two vacancies in the aforementioned size band. Smaller tenants have more optionality in the fringe markets particularly those under 3,000 sf but there are still very real limitations. lease refer to Table One for the current vacancy rates for the fringe markets.

4 Market FORECAST Much like the weather, blanketing the city with smoke for most of the third quarter, s market for commercial real estate failed to provide us with any real clarity in the summer of 08. Now, progressing through a cool fall, we are hoping that icy conditions do not mimic our opportunities for absorption in the downtown core. As described in our market report, the third quarter was, comparatively spending to recent years, a big quarter for absorption. Keeping that in mind, consider the following: s unemployment rate climbed to 8.% in August, up from 7.9% in July, and stands as the second highest municipal rate in the country Conference Board of is forecasting real GD growth in Alberta at.% in 09, down from.6% in 08 Vacancy is still at 4.5%, despite the relatively active quarter just experienced Take in the above. Now, not to dampen the mood, but we need tempered optimism. Yes, material leasing of commercial real estate happened in the third quarter. Yes, the vacancy rate moved in a positive direction for the first time in a long time. No, Cresa does not anticipate sustained quarters like the last one. So, what can expect into the end of 08 and the start of 09? While the future is difficult to predict, we have a few good clues with respect to what to look for in the following months. A. Further consolidation in the energy sector, leading to staffing redundancies pending acquisition of Trinidad Drilling by recision Drilling proposed acquisition of MEG Energy by Husky Energy B. Residual personnel adjustments with respect to large corporate transactions from the first three quarters of 08, primarily pertaining to employment overlaps C. first investments from the Opportunity nvestment Fund (OCF), which should help local employers add new bodies to their teams D. Optimism over the confirmation of Shell s LNG project in ern British Columbia, which has the potential to be a boon for employment nternational and national macro-economic forces will add further complexity to the economic picture in. Several economists cheered the resolution of the new USMCA trade agreement, although its impacts remain to be seen. Tariffs on steel and aluminum are still in tact between the States and, and continue to be a point of contention between the two countries. ern discounts for both oil and gas are near all-time highs, and we still do not have the answers we need on the Trans pipeline to have confidence that we can solve our energy transportation issues. We are treading in uncertain times and repercussions of federal decisions remain to be seen with respect to Alberta s and s economies. Going forward, we are hesitant to predict a material decline in downtown vacancy over the course of the next six-to-twelve months. Expect modest fluctuations to the vacancy rate and a moderately flat leasing environment, strongly maintaining s standing as a tenant s market. cold weather may have arrived early, but we expect market conditions to mirror a typical winter cool, cloudy, and the beneficiary of the odd chinook breeze. Graph ONE FORECASTED VACANCY 500, , ,000 Telus Sky 30.00% 5.00% 350, ,000 Tenant Market 0.00% 50, % 00,000 50, % New nventory (sf) 00,000 50, Forecast 08 Forecast 09 Forecast 00 Forecast 0 Forecast % 0.00% Vacancy (%) New nventory Historical Vacancy (%) Forecasted Vacancy (%)

5 Table ONE Q3 08 VACANCY SUMMARY Click here to view vacancy details BULDNG CLASS TOTAL NVENTORY HEADLEASE SUBLEASE TOTAL (sf) (sf) (%) (sf) (%) (sf) (%) Downtown AA 5,960,873 99, %,785,55.9%,75, % A 7,45,04 3,5,3 8.06%,7, % 4,368, % AA/A 33,4,077 4,08,9.% 3,00,9 8.99% 7,084,3.0% B 7,539,393,786, % 94,40.58%,98, % C,584,78 56,7 9.97% 00,5 3.87% 66,3 3.84% Total Downtown 43,536,5 7,384, % 3,97, % 0,68, % Beltline and Fringe Area Beltline 6,785,44,074, % 553,3 8.5%,68,4 4.00% Kensington 604,70 58,7 9.6% % 58,7 9.6% nglewood 46,985 3, % 9,47.04% 33,03 7.9% Mission 937,53 48, % 6, % 54, % Total Beltline & Fringe Area 8,789,363,304, % 569, %,874,059.3% Graph TWO SUBLEASE VACANCY NDEX 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% AA = A = 7.87% Graph THREE COMARATVE VACANCY 45.00% 40.00% 35.00% 30.00% 5.00% 0.00% 5.00% 0.00% C = 6.5% 0.00% Vacancy Rate 0.00% B = 6.56% 0.00% Q3 04 Q3 05 Q3 06 Q3 07 Q3 08 Vacancy % 5.00% 0.00% Class AA Class A Class B Class C Class AA Class A Class B Class C Table TWO LARGE BLOCKS OF AVALABLE CONTGUOUS SACE, DOWNTOWN CALGARY s Type Area (sf) Bow Sublease 3,077 Brookfield lace - Upcoming Sublease 30,869 Telus Sky Upcoming Headlease 86,7 Brookfield lace - Headlease 65, Fifth Headlease 6,056 enn laza - Sublease 96,539 Gulf Sublease 93,604 Type Area (sf) FRST TOWER Headlease 77,35 Stephen lace Headlease 34, Hanover lace Headlease 6, Lavalin Headlease 9,366 Edison Headlease 8,86 Bow Sublease 6,65

6 rinceton l & Eau Claire S.W. Eau Claire Y.M.C.A. rince s sland 7 Eau Claire Market Waterfront Riverfront Street Bridge Memorial Drive Bow River New DEVELOMENTS DOWNTOWN t Sprint 7 Street S.W. 7 Street S.W. Dev Xenex s Fav Claire Apt LaCaille ark lace rince s Crossing Optima lace 736-6th avillion etrofina Life laze Guinness Alberta lace acific arkade Terrace of Electric Substation # Bow Claire Apt Eau Claire McDougall Joe hillips ExecSuite ill Chateau 75-5th Elveden Fairmore ern lace McFarlane Ramada Bantrel Britannia Sierra lace veagh 707 0th Ave Joffre lace Sport Swap Barnhart 6 Street S.W. 6 Street S.W th hillips John J. Bowlen ern Union Strategic Alpine Shaw Encor lace 635 8th 640 5th 639 5th aserium Bradie Ford Bottle Depot Summit arkade Foundation Lorraine 65 3rd Alberta Boot Co. Atrium on th Eau Claire Fifth & Fifth Regency Hawthorn 6 5th & Suites s 707 Fifth Kipling Annex Barron lains Midstream laza Sunrise arkside lace etex Kipling Roberts 5 Street S.W. 5 Street S.W. TV Eighth lace Eau Claire lace Five Ten Fifth Hudson 555 4th Aquitaine Historic of Appeal 5/5 Citadel lace Watermark lace 0 Castello lace London Altius 50 Chevron 5th laza Oxford 55 th Harley Hotchkiss Holt Renfrew Eighth lace lace Street S.W. Shaw 05 4th St. Sam Millennium Shell Fourth & Fourth 444 5th 44 5 Knox 4 Street S.W. 606 Fourth 444 Seventh Sheraton Suites Devon TD Trust Calfrac land lace Roslyn 505 3rd 404-6th Core Shopping HSBC Genco lace Gulf 4th St. S.W. 3 Street S.W. Barclay Mall Barclay Mall Butcher Lacey lace Centrium lace 333 5th lace arkade & Can-am in Dome Core Shopping Masonic Temple Metropolitan etroleum Club ers Hall Vintage Jamieson lace ntact lace 333 -th Home Stephen lace Stock Exchange rospect lace 6 Devonian Lancaster Hollingsworth Vintage 30 - th Ave Street S.W. Street S.W. lace B National ers lace MacCosham BM B BM C th lace ndian Friendship Waikwan Bowside of Winner Montreal Dept. Hist Store Telephone Telus NG Five Harvest laza Oddfellows TELUS Sky Le Germain Mustard Seed Bow alliser enn laza BM Fifth lace Bow arkade Bow arkade Stephen lace Lewis Bow V nternational Valley Chinese Cultural 4 Manhattan Fifth lace Brookfield lace - Bay Grain Exchange aramount Street S.W. Street S.W. Trans ipelines Telus Central Alberta Mount Daqing Lougheed Sun Life laza Edison Bromley Chinatown Seniors laza Asia acific James Short arkade Suncor Energy Mall Clennan Trans Alta Hanover lace Hudson Street Street Broadview Hong Kong laza China Opulence Ubridge Hyatt Marriott Mustard Seed Dragon S.E. 8 S.E. Town 4 S.E S.E. 0 S.E. Telus Convention Telus Convention alliser One Carbon Copy S.E. 3 S.E. 5 S.E. 6 S.E. FRST Glenbow Museum Street laza west Travellers Budget olice alliser MEG lace 34 - th S.E. Street S.E. Street S.E. Carber lace Fire Hall # Anglican Cathedral Dominion ublic Tech lace Braemar Gov t of Delta Keynote Riverfront Brownstone Harry Hays Board of Education Baker Rocky Rocky laza Olympic laza Arts Commons C..R. () Burns Demcor Macleod Trail Macleod Trail Worker s Compensation Board ublic Library 303-9th Ave Louis Blk. Riverfront rov. Remand olice H.Q. Hall Ribtor Bow Valley Municipal Edward s lace Alberta Trade Riverfront ointe Self Storage Ribtor 3 Street S.E. 3 Street S.E. Anticipated Completion 09 ending TELUS Sky Telus, bank & Allied RET Floors: 6 Area: 430,000 sf Floor late: 6,500 sf Est. Completion: 09 ercentage Leased: 36% Anchor Tenants: Telus Brookfield lace - Brookfield roperties Floors: 4 Area:,000,000 sf Floor late: 7,500 sf Oxford Oxford roperties Floors: 47 Area:,00,000 sf Floor late: 6,000 sf alliser and Floors: Area: Floor late: Est. Completion: Anchor Tenants: - Aspen roperties 9 each 60,000 sf each 3,500 sf n/a n/a GWL Realty Advisors Floors: 7 Area: 698,000 sf Floor late: 7,400 sf Eau Claire Market Redevelopment Harvard s Floors: 40 Area: 555,000 sf Floor late: 3,800 sf

7 9 Street S.W. 9 Street S.W. C..R. lace 9-6 O Neil Apts. Astoria Rivera Grace Horizo Rimbey Board of Calmar Apts. 5 lace Apartments entland lace Apts. 8 S.W. Mixed Use Atco Education Eight Mark on Tenth Dorchester Savoy Garden Apts. Edinburgh lace Atco AS Columbia Apts Sundance oint on the Bow Century Century ark lace Garden / Equipment Coop Emerald Stone Century St. Elizabeth Residences of Mount Heritage lace 840 7th Tenth Eau Claire Lookout Liberte Eau Claire lace Came Helene Eau Claire Retirement Neff Apts lace rince s sland lace Glenbow Mt. Devenish Thomkins ark High Street lace 96 Continental Electric Substation land lace 9 S.W. University of Downtown Campus 6 0 S.W. S.W. Dominion lace S.W. 3 S.W. Aldrin 4 S.W. Full Gospel 5 S.W. 6 S.W. 7 S.W. Lavalin Dominion 999 8th St. 90 Van Helden Gas 8 Street S.W. 8 Street S.W. Sonoma lace Atrium Atrium Sandman Corner etrowest laza Barclay Best ern Mount lace Mt. Village 3 S.W. 4 S.W. 5 S.W. 6 S.W. anarctic laza Safeway Sutton lac restige Landing s Granada S.W. Diversified Staffing AMEC lace Montana 808 5th Nexen Atrium Stratto Oak Bike Shop Renoir Suites Colonial Shoppers Drug Mart lace 800 Nexen Taylor Sprint Cooperblok Adair Wesley / 7 Street S.W. 7 Street S.W. LaCaille ark lace 736-6th Dev rince s Crossing Xenex s avillion White-Wain- Hill 744-4th etrofina Life laza Guinness Alberta lace Stonehaven Sherman Oaks bury Kildare of Montreal acific arkade Terrace of Electric Substation # Blood Services Centro Congress Eau Claire McDougall Moxam Queenswood ExecSuite ill Chateau 75-5th Elveden Fairmore Marlhurst Estate Chelesa Lane Ramada ern lace Sierra lace veagh Sport Swap Barnhart Lougheed Ranchman s Club Beulieu Lincoln s Diplomat illars McFarlane Bantrel Britannia 707 0th Ave Exud Joffre lace buster ern High School 6 Street S.W. 6 Street S.W th 634 6th Alpine John J. Bowlen Fire Hall hillips ern Strategic Union Shaw 639 5th Encor lace Ford 635 8th aserium Bradie Bottle Depot Foundation Hull Summit Lorraine Eau Claire s Cambridge Gate Birkenshaw Apt lains Midstream laza Ashwood Grandville anorama 65 3rd 6 5th arkade Fifth & Fifth 707 Fifth Alberta Boot Co. Atrium on th Evergreen Kipling Annex Regency Hawthorn & Suites etex Barron Sunrise arkside lace 0-5 St S.W. Chateau Falls Kipling Roberts 5 Street S.W. 5 Street S.W. Eau Claire lace Five Ten Fifth 555 4th Aquitaine of Appeal TV Eighth lace lace 0 Colonel Belcher Castello Cypriana s Historic of Appeal Hudson 5/5 Citadel Dunhill lace Centra s Rosewood Estate Conservatory Shell Station Watermark Wexford lace London St. Moritz Hargrave / National Altius 50 Chevron 5th laza lace Oxford 55 th Harley Hotchkiss Holt Renfrew Eighth lace Yellowstone lace 0 0 Sonesta Aurora Stratford s Shaw 4 Street S.W. 05 4th St. Sam Sheldon Chumir Health Sony 44 5 Rose & Crown Shell Fourth & Fourth 444 5th Knox 4 Street S.W. 606 Fourth Devon 444 Seventh TD Trust Calfrac. land lace Roslyn Core Shopping Exeter Retai 505 3rd 404-6th HSBC Genco lace 50 4th St. Opus Gulf Butcher 5 3 Street S.W. Barclay Mall Barclay Mall 4th Lacey St. SW ark 300 allisades Beltline Kingston s lace 333 5th Centrium lace Core Shopping Trump lace arkade & Can-am Central Memorial ark in Dome Masonic Temple rada ark lace Darlington Arms Alberta aris Main Street Metropolitan etroleum Club Vintage ntact lace yard Home th Vintage Scenic lace Jamieson lace lace Stock Exchange rospect lace Devonian Lancaster 30 - th Ave Memorial ark Library Randel Funeral Home Street S.W. Stephen Hollingsworth CBC ershall Street S.W. lace B National ers BM A Fifth lace Bow arkade Bow arkade Stephen lace Lewis Bow V Seville Vet lace nternational enn laza MacCosham BM B BM C ark & layground Valley Brookfield lace - th lace Beltline ool Chinese Cultural Manhattan Fifth lace Bay Grain Exchange Rest Radio Haultain Coronation lace Madison Laurekka Executive Funeral Home Notre Dame lace ark aramount Union Street S.W. Street S.W. Rouleauville Colours Chocolate s Waikwan Trans ipelines Telus Central of Winner Montreal Dept. Hst Store Alberta alliser Mount Findlay Lougheed La Chaumiere Daqing Sun Life laza NG Five Harvest laza Telephone Telus Edison Bromley Arts laza Asia acific James Short arkade Suncor Energy Clennan Oddfellows Hanover lace TELUS Sky Hudson Le Germain Mustard Seed Haworth Hath Away lace Apts Carlyle Ashbury s MacKenzie ona Mall Trans Alta olo Terrace ark 5 Economy Glass Street Street Ubridge Bow Hyatt Marriott Mustard Seed Twelve Richmond of ositive Living China Town Opulence Dragon S.E. 4 S.E. Telus Convention Balmoral 8 S.E. 9 S.E. Telus Convention Carbon Copy Stamp FRST alliser One Glenbow Museum west Travellers alliser 5 S.E. Street laza Budget olice 34 - th S.E. Esso Gas Station 3 S.E. Bernard Callebaut Superior aint 3 S.E. 5 S.E. 6 S.E. 0 S.E. S.E. S.E. 4 S.E. Alex Walker 7 S.E. MEG lace Retai Car Rental M-tech Street S.E. Street S.E. Carber lace Fire Hall # Anglican Cathedral Dominion ublic Teck lace Sit Alpha Braemar Keynote Victoria Nuera Sasso Vetro Gov t of Delta 4 Riverfront Brownstone Elbow River Casino Harry Hays Board of Education Epcor Center for laza Baker Rocky () Rocky Olympic Arts laza the erforming C..R. Burns Demcor Stampede Station 3 Macleod Trail Macleod Trail New DEVELOMENTS Worker s Compensation Board ublic Library 303-9th Ave Louis Blk. Riverfront BELTLNE rov. Remand olice H.Q. Hall Ribtor Valley Municipal Bow 3 Edward s lace 4 Alberta Trade 5 Roundup Riverfront ointe 6 Self Storage Ribtor 3 Street S.E. 3 Street S.E. Cecil 409 0th ilkington Bookers olice arking Structur No rendering available Anticipated Completion ending Eagle Drop in Floors: 4 Area: 36,500 sf Floor late: 4,850 sf Est. Completion: 07 Corral Trail S.E. lace 0 - St. Louis Abugov Kaspar Exhibition Exhibition Stampede Corral olice Association olice lace 0 Service - Centron s Assoc. Rick s Firefighters Floors: Auction 4 Hostel Area: 300,000 sf Floor late: 3,3507 sf S.E. Anchor Tenants: n/a 8 S.E. Stampede Station, hase Gas Hillier Artis RET Floors: 9 Area: 35,400 sf Floor late:,600 sf King Est. of Completion: Hope Edward n/acommisionaires 9 S.E. Commissary Biscuit 4 Street S.E. Coyotes Sandstone 08 School - 4th Street SW Arriva Olympic Way S.E. Stampede Trail S.E. 4 Flyover Old Langevin Bridge Centron s 6 S.E. Keynote 4 Triovest Realty Floors: 8 Area: 340,000 sf Floor late: 0,900 sf S.E. Genco Floors: 3 Area: 86,600 sf Floor late: 5,400 sf S.E. Exhibition 3 S.E. 999, hase Triovest Realty Floors: 3 Area: 4,000 sf Floor late: 6,800 sf Exhibition 4 S.E. Exhibition Saddledome RS Orange Scotiabank Saddledome Bridge Langevin 5 Street S.E. 5 Street S.E. BJ s Gym Simmons 5 S.E. Alberta Locker Service Village lace Murdoch Exhibition Exhibition arking Grandel Agriculture Trail S.E.

8 Graph FOUR HSTORCAL DOWNTOWN OFFCE ABSORTON Absorption (000's sf),600,400,00, (00) (400) (600) (800) Q3 06 Q4 06 Q 07 Q 07 Q3 07 Q4 07 Q 08 Q 08 Q3 08 Class A/AA 50,69 (386,460),08,884 53,4 (353,65) 397,059 7,30 (67,350) 4,4 Class B (98,043) (7,839) 9,659 (338,89) (,534) (5,370) (3,38) (47,53) (40,06) Class C 6,658 (8,56),33 (6,730) (5,035) 45,43,46 (5,905) 0,843 Quarterly Absorption All Classes (0,766) (577,455),3,676 (3,48) (46,834) 47,0 6,390 (367,786) 04,968 Graph FVE AVERAGE HEADLEASE NET RENTAL RATES ER SF, ALL CLASSES $50.00 $45.00 $40.00 $35.00 $30.00 $5.00 $0.00 $5.00 Net Rate per sf $0.00 $5.00 $ YTD Graph SX AVERAGE OERATNG COSTS ER SF $5 Class AA Net Rent Class A Net Rent Class B Net Rent Class C Net Rent $0 $5 $0 Cost per sf $5 $ Class AA $9. $.3 $.60 $3.58 $3.67 $.79 $.86 Class A $7.60 $8.76 $0.5 $.54 $.5 $0.77 $0.7 Class B $5.43 $6. $8.44 $9.38 $8.96 $7.79 $6.8 Class C $4.60 $4.50 $6.07 $6.74 $6.94 $6.89 $6.46

9 CONTACT NFORMATON OFFCE ADVSORY TEAM Donna Lea s dbanks@cresa.com Josh Hamill jhamill@cresa.com Gary Jones gjones@cresa.com Willem Thoma wthoma@cresa.com Nicole Bennett nbennett@cresa.com Damon Harmon, CA, CGA dharmon@cresa.com Josh Manerikar jmanerikar@cresa.com Michael Yue myue@cresa.com Jessica Downie jdownie@cresa.com Adam Hayes ahayes@cresa.com Kendra inder kpinder@cresa.com John Engbloom jengbloom@cresa.com Dan Houston dhouston@cresa.com Adam Stewart astewart@cresa.com NDUSTRAL ADVSORY TEAM Greg Albright galbright@cresa.com David Miles dmiles@cresa.com Donna Lea s dbanks@cresa.com ROJECT MANAGEMENT ADVSORY TEAM Janet Hewitt jhewitt@cresa.com Syeda Ahmad 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 Street SW, Suite 400, AB T T real estate services, including: Transaction Management, roject Management, Strategic Services, Corporate Solutions, Selection, Lease Administration, Capital Markets, Mission Critical Solutions, Relocation Management, and Facilities Management. For more information, visit 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.