Q3 Update Calgary Q3 Update Calgary Downtown Office Downtown - PowerPoint PPT Presentation

Q3 Update – – Calgary Q3 Update Calgary Downtown Office Downtown Office CBRE Limited CBRE Limited

DOWNTOWN CALGARY OFFICE MARKET..THE FACTS � Strong stable institutional ownership: primarily pension funds � Overall Vacancy – 7.0% (was 11.5% Jan 2011) � YTD absorption - 2.2 million SF!!!!!...that’s a record!!! � Class AA Vacancy – 2.9% � 5,845,000 SF built 2009-2012 : ONLY 80,000 SF vacant � Who’s next?....Eighth Avenue Place?....Cadillac Fairview’s City Centre? …Palliser West?... Oxford Eau Claire? CB Richard Ellis | Page 2

Major Lease Transactions 2011 TENANT BUILDING SF New Deals Suncor Suncor East 120,000 SNC Lavalin 640 5th 100,000 Meyers Norris Penny LLP 640 5th 68,000 Canadian Forest Oil Ltd. 640 5th 34,000 Crew Energy Centennial 66,000 Talisman/ Sasol PennWest 63,000 Talisman First Canadian Centre 118,000 Imperial Oil BP Centre 75,000 Dover Energy Bow Valley Square 24,000 Husky Energy Western Canadian Place 37,000 IMV Projects 555 4 Avenue SW 34,000 Significant Renewals SNC Lavalin 5th & 5th 115,000 Paramount, Stikeman, Blakes, Talisman Bankers Hall 800,000 AltaGas Calgary Place II 100,000 Encana Backfill Apache TD Canada Trust 206,000 TD Bank TD Canada Trust 74,000 Schlumberger One Palliser 140,000 CNRL Bankers Hall East 180,000 Gowlings TD Canada Trust 72,000 CB Richard Ellis | Page 3

ENCANA OFFICE FALLOUT - Then First Canadian Dome Tower Scotia Centre Floors: 19, 20, 23 Floor: 17 Floors: 35 ‐ 36 Area: 38,000 SF Area: 14,000 SF Area: 28,000 SF TD Canada Trust Tower Floors: 8 – 40 Area: 533,000SF One Palliser Square Bankers Hall West Encana Place Bankers Hall East Floors: 3 – 11 Floors: 7 – 9 Floors: 2 – 28 24 – 27 Floors: 10 – 19 Area: 193,000 SF Area: 61,000 SF Area: 420,000 SF Area: 198,000SF CB Richard Ellis | Page 4

ENCANA OFFICE FALLOUT – Now !! LEASED First Canadian Dome Tower Scotia Centre Floors: 19, 20, 23 Floor: 17 Floors: 35 ‐ 36 Area: 38,000 SF Area: 14,000 SF Area: 28,000 SF LEASED LEASED % 0 9 TD Canada Trust Tower Floors: 8 – 40 Area: 533,000 SF LEASED Talisman?? LEASED ??? One Palliser Square Bankers Hall West Encana Place Bankers Hall East Floors: 3 – 11 Floors: 7 – 9 Floors: 2 – 28 24 – 27 Floors: 10 – 19 Area: 193,000 SF Area: 61,000 SF Area: 420,000 SF Area: 198,000 SF CB Richard Ellis | Page 5

2000 – 3Q 2011 Historical Calgary Downtown O ffice Inv entory vs. Vacancy Rates 2000 - 3Q 2011 37,000 18.0% 36,000 16.0% 35,000 14.0% ) SF Inventory vs. Vacancy Rates (%) 34,000 12.0% Inventory (000's Rates 33,000 10.0% Vacancy 32,000 8.0% 31,000 6.0% 30,000 4.0% 29,000 2.0% 28,000 0.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 3Q Years 2011 Inventory Vacancy CB Richard Ellis | Page 6

2000 – YTD 2011 Calgary Downtow n Office Abs orption 2000 - YTD 2011 2,500 F 2,000 orption 000's S 1,500 Absorption 1,000 500 0 Abs -500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD 2011 -1,000 -1,500 Y ears CB Richard Ellis | Page 7

Dow ntow n YTD 2011 Absorption YTD 2011 Downtown O ffice Abs orption 1,000,000 800,000 Absorption (SF) 600,000 400,000 200,000 0 Class AA Class A Class B Class C Class D -200,000 Class es CB Richard Ellis | Page 8

2012 – WHAT TO EXPECT • Continued Confidence, Continued Investment • Demand to Remain Stable…velocity to slow down • Product Offerings Deteriorate • Increased Focus on Renewal Leasing • New Developments (8 th Ave West, City Centre, Eau Claire Tower, Bow South, Centre 10) CB Richard Ellis | Page 9

CB Richard Ellis | Page 10

Fifth Avenue Place - Brookfield • 60,000 sq.ft. Oil and Gas company • Renewal offer for 10 years. • $25 psf – years 1 ‐ 5 • $32 psf – years 6 ‐ 10 • $90 psf tenant improvement allowance • Brokerage fee • Approx. NER of $13.71 psf CB Richard Ellis | Page 11

Barclay Centre • 20,000 sq.ft. Law firm • Renewal offer for 10 years. • $28 psf – years 1 ‐ 5 • $32 psf – years 6 ‐ 10 • $60 psf tenant improvement allowance • Brokerage fee • Approx. NER of $19.84 psf CB Richard Ellis | Page 12

Eighth Avenue Place - West • 150,000 sq.ft. Oil and Gas company • Offer for 10 years on upper floors. • $38 psf – years 1 ‐ 5 • $45 psf – years 6 ‐ 10 • $100 psf tenant improvement allowance • Brokerage fee • Approx. NER of $22.56 psf CB Richard Ellis | Page 13

Encana Brad, would you have done any of these deals as a tenant? If not, please comment. CB Richard Ellis | Page 14

Q3 Update – – Calgary Q3 Update Calgary Downtown Office Downtown Office CBRE Limited CBRE Limited