The Transformation of Downtown The Transformation of Downtown Ottawa Ottawa Ottawa Real Estate Forum 2018 Ottawa Real Estate Forum 2018 Ottawa Real Estate Forum 2018 1
Who’s Moving in and Who’s Moving Out? What is the impact of urban tech tenants and coworking companies? How is the presence of the federal government changing? What is the potential impact of the LRT on emerging trends? Where are the new development opportunities in the central area? 2
Ottawa CBD Office Market Overview 12.0% Vacancy (all classes) Central Ottawa 10.0% Inventory 8.0% Class C 9% 6.0% Historical Average = 8.6% 4.0% Class A Class B 2.0% Class B Class A Class C 33% 0.0% 58% 2014 2015 2016 2017 Q3 2018 Building Class Inventory (million sf) Q3 2018 Vacancy Class A 10.8 4.6% Class B 6.1 11.2% Class C 1.7 14.7% Overall: 18.6 7.1% 3
Urban Tech Growth in the CBD How much growth has there been in urban tech related tenancies? • Early 2000s - 6,000 sf at 61 York Street • 2012: expanded and moved to 10,000 sf 126 York Street • 2016: moved into 130,000 sf at 150 Elgin Street • 2017: committed to additional 325,000 sf at 234 Laurier Avenue • 2022: will occupy all of 234 Laurier Avenue • Occupied - 6,000 sf at 176 Gloucester Street • 2017: moved into 17,000 sf in World Exchange Plaza • Occupied - 10,000 sf at 12 York Street • 2018: moved into 47,000 sf at 200 Laurier Avenue Ottawa is recognized as one of the top cities in North America for technology sector growth 4
Coworking Space on the Rise How is coworking changing the makeup of office tendencies and affecting office occupancy? • Currently in small pockets of space across the city. Over 15 shared office locations in the CBD. • Regus and TCC are among the biggest “traditional” shared office occupiers. • Collaborative business communities are emerging like Collab Space, One Eleven, and Impact Hub which offers its members services like mentorship, networking events and access to investors and promotional support. 5
Changing workplace demographics How do millennials needs differ to traditional public sector tenants? Millennials value the “live, work, play ” A generation that has high workplace standards which are correlated to lifestyle that is associated with working in the downtown core. talent retention. Far less correlated in the public sector. Growing popularity in Emphasize the importance of telecommuting providing work-life an open and collaborative office balance flexibility. space. The Federal government is revamping office spaces with Activity Based Workplace (ABW) and Workplace 2.0 • Strong virtual environment • Based on flexibility, efficiency, health, collaboration and digital capacity • Workplace 2.0 – currently 3% converted with target to achieve 25% or 8 million square feet by 2025
Department of Defence Moving to the Suburbs To what extent is the government presence in the core declining? Recent EOIs/RFIs in the Central Area 2014 2017 2017 2018 2018 90 Elgin 222 Nepean 160 Elgin 219 Laurier 400 Cooper • 489,000 sf • 111,000 sf • 60,000 sf • 38,000 sf • 55,000 sf New DND Campus in the West End • Three phase plan to consolidate 50 facilities to approximately 7 • Old Nortel campus revamped for new DND HQ- completion by mid-2020 The government is Over 40% of Over 50% of still the largest overall office CBD office occupier of space inventory inventory Cushman & Wakefield | Client name 7
Light Rail Transit in 2019 What will the potential impact of LRT have on emerging trends? • Transit-oriented suburbs may become more attractive once the LRT is operational • Many new developments have been approved over the set building height limits • Trinity Centre at 900 Albert will be up to 65 stories high. • Located at Bayview Station connecting the Trillium Line with the new Confederation LRT line. • Up to 18,000 passengers an hour travelling through the station during peak hours. • New events centre with 18,000- seat capacity, public square and other features that promotes intensification of the core. 8
Central Proposed Developments Where is the demand supporting the viability of these projects? Address Landlord/Developer Potential Square Footage 170 Slater Street GWL Realty Advisors 386,000 sf 300 Queen Street Brookfield 577,000 sf 150 Bank Street Morguard 435,000 sf 6 Booth Street Zibi 80,000 sf by 2019 plus 200,000 sf by 2020 900 Albert Street Trinity 300,000 sf LeBreton Flats RendezVous LeBreton 2,800,000 (combined office Group & retail) 80 Metcalfe Street Metcalfe Realty 157,000 sf Total: 2.14 million sf (excl. LeBreton) 9
Recommend
More recommend
