Dr. Lawrence A. Souza, DBA, CRE, FRICS, CCIM’s Post

Finding The Perfect Commercial Space In Calgary BedRock Realty Advisors understand the significance of a well-structured commercial space that aligns with your business goals and financial aspirations. In this comprehensive guide, we delve into the essential aspects of optimizing your Calgary commercial space to set your business on the path to success. Think about where it is, what it comes with, and how flexible the terms are. Make sure it fits your budget and has room for your business to grow. Talking to real estate experts can help you find the best spot for your business goals. When looking for commercial space Calgary you consider the following key points before making a decision: Define Needs: Clearly outline the purpose, size, and layout requirements for your commercial space. Consider the nature of your business and any specific operational needs. Location: Ensure the area is accessible for employees. Choose a location that aligns with your business goals, considering factors such as proximity to clients, suppliers, transportation hubs, and the overall business environment. Cost Analysis: Evaluate the total cost of occupying the space, including rent, utilities, maintenance, and any additional fees. Ensure it aligns with your budget and future financial projections. Infrastructure and Technology: Ensure that the commercial space is equipped with the necessary infrastructure to support your technological needs, including reliable internet connectivity and any specialized requirements. Security: Assess the security measures in place within the building or complex to safeguard your business and assets. Commercial Real Estate Professional: Engage with a commercial real estate professional to gain insights into the local market, industry trends, and to assist with negotiations. Their expertise can be invaluable in finding the right space for your business. Conclusion: By carefully considering these factors, you can make an informed decision and choose a commercial space in Calgary that not only meets your immediate requirements but also aligns with your long-term business objectives. Bedrock Realty Advisors Inc. is a Calgary commercial real estate brokerage specializing in the leasing, subleasing, and lease renewal consultation of tenants in the local office market. Contact us at 403-619-5646. https://lnkd.in/et-r8m4k

OFFICE LEASE REDEVELOPMENT CLAUSES: BIG ISSUE TODAY: Landlord wants or needs) to redevelop its property to a more viable use and more profitable operation. Think altering and changing the common areas (such as parking areas, lobbies, conference centers and other amenities), constructing additional stories or additions, adding new uses ( hotel, retail, residential) upgrading building systems (Climate Change Law too), running new pipes, conduits and ducts through a tenant’s space, and relocating a smaller tenant to benefit a larger tenant.  Landlords are looking to insert into their leases broad rights of redevelopment including, including declarations, reciprocal easement agreements and development agreements. Tenant must push back and negotiate these broad rights which give tenants little control, certainty or comfort as to the Landlord's future project AND which may COST TENANT LOTS OF MONEY( York Group's business) and ADVERSELY IMPACT TENANT'S BUSINESS. If not handled properly, Condos, New Fee Parcels including, Vertical Plats may be great for the Landlord but cost the tenant lost of money and hurt its business.

Time to give office some love! Leasing activity for the quarter was 300K square feet (sf), nearly 100K sf lower than the previous quarter. Year to date leasing activity has risen to over 700K sf thus far in 2023. A notable lease transaction signed in the Central Business District (CBD ) for the quarter was BrandMuscle leasing 12,800 sf at 1500 West 3rd Street. BrandMuscle is vacating their prior space at 1100 Superior Avenue, leaving behind a nearly 55,000 sf space and reducing their overall office size by over 80%. This move confirms the current trend towards smaller, higher quality spaces for tenants. Credit to Alexander Valletto for the market research. For more market insights click on the Cleveland Office MarketBeat 2Q23! Barna Caplan Cushman & Wakefield | CRESCO Real Estate

HBD is about to submit a major planning application for Colloco, a highly sustainable, 200,000 sq ft office scheme within the St John’s District of Manchester City Centre. The GDV of Colloco is £140million. Read more: https://lnkd.in/efiuZWE2 Also in today's newsletter... LondonMetric Property PLC (LMP) announces the sale, in separate transactions, of four long income and retail assets, for £16.9 million. The combined price is in line with book value. - https://lnkd.in/eeGHUVnx South Lanarkshire Council has unveiled ambitious plans to overhaul more than a third of East Kilbride’s town centre. The proposal, driven by the changing retail landscape, seeks to replace the now-vacant department stores with residential units and open-air public spaces, marking a 40% reduction in the retail footprint. - https://lnkd.in/eMr4CJSk BMW Group, the renowned German automotive giant, is making waves in the UK’s logistics and construction sectors with a substantial investment focused on electric vehicle production. - https://lnkd.in/eQh_6Jxt British homebuilder, Vistry Group announced today, a significant shift in its operational strategy. The company has decided to channel its entire focus on the affordable homes segment, aligning with the evolving needs of the UK housing market. A promising proposal to construct nearly 300 homes on a former factory site in Melton has been met with optimism from local residents. - https://lnkd.in/eWa8mghA Adam Brady - David Booth - South Lanarkshire Council - John Ryley - Louisa Compton - Peter Spiegel - Jonathan Munro

No recent real estate deals capture the current dynamics of San Francisco’s changing office market quite like this deal in the Mid-Market neighborhood (at 1455 Market Street). And it may not be the only one. The city has negotiated another deal in the building at 1145 Market St., near Civic Center, and expects to formally announce it next week. Starting in May, more than 157,000 square feet of the building will be leased to the city, according to a resolution introduced this week by Board of Supervisors President Aaron Peskin. According to the pending lease agreement, the city will initially lease a portion of the tower’s seventh floor, or roughly 51,790 square feet, and all of floors 12, 13, 15 and 17. The term of the lease is 21 years and comes with two five-year renewal options.

Office: Leasing activity fell 25.6% year-over-year. Manhattan experienced a 10.5% drop in leasing activity from 2022 to 2023 with a vacancy rate of 17.8% and 96 million square feet of available space. Companies leased 2.5 million square feet in Manhattan last month. 25% was from Davis Polk & Wardwell’s extension at 450 Lexington Avenue for 700,000 square feet of new space. Retail: Leasing is picking up where landlords can lower their rents to the current market pricing. On Third Avenue, a landlord signed an avenue lease for $100/SF. Building Sales: Manhattan building sales picked up, as sellers lowered prices to reflect the new reality of higher interest rates and lower rents. To read full report go to www.optimalspaces.com

Another great example of why we have to be proactive with our built environment and how dynamic it actually is. During the pandemic office buildings became deserted all across the world, and they have not returned to their pre-pandemic occupancy rates in many cities as people realized they can be just as productive working remotely. It is an example of how quickly our needs can change over the span of a few months or a year. This article does a great job illustrating some of the challenges of converting office buildings into housing, schools or public buildings. It is very important for architects, developers and other construction professionals to be proactive in their approach to buildings and to design for such dynamic circumstances. In the future having a flexible building system that allows for easy modification, adaptation and reconfiguration would be a game-changer in our approach to urban environments.

Office: Tenants are now asking to look at owners' books before signing leases. Retail: Increased tourism and lower asking retail rents are enticing tenants to sign leases. Buildings Sales: The sharp rise in interest rates has slowed transaction activity in markets across the nation and in New York. Investment sales in New York City dropped at least 36% year-over-year in the first half of 2023. Industrial sales down 63%, Special purpose down 52%,Office down 48%, multifamily down 41% and retail/hotels down 36%. To read full report go to www.optimalspaces.com

An excellent "plain English" explanation of why converting office buildings to residential is easier said than done. A salient point: "No one wants to give money to developers to encourage them to make investments they would have made anyway, as building prices declined. But city officials have to weigh this risk against the urgent need to reinvigorate downtowns before they enter a spiral of blight, crime and underinvestment. "Several large cities are giving developers tax breaks if they convert offices into apartments. Philadelphia introduced in the late 1990s a 10-year tax write-off that spurred a massive downtown building — and population — boom. More recently, Calgary, Alberta — widely considered a model for office conversions — has committed about $150 million (200 million Canadian dollars) in grants. D.C. just enacted a 20-year tax abatement, but it’s capped at a low level in the next few years. Boston is piloting a 29-year version." Not mentioned: California, which allocated $50M annually in 2022-23 and 2023-24 for the Adaptive Reuse program to facilitate office conversions. Given that the New York state legislature refused to renew the 421-a tax abatement, calling it a "giveaway" to developers, such a program isn't likely to happen here. But it should. Here's a couple other suggestions: allow office buildings to carve out interior courts or yards and then rebuild the demolished floor area on top without regard for underlying height and setback rules. Give converted office buildings bonus floor area for including affordable housing. The Office Conversion Accelerator is a great idea, but there are so many things that could be and need to be done.

JLL published its 2024 Pittsburgh Tenant Movement Study, an annual survey of office leases over 5,000 sq. ft. that expired during the past 12 months. The study found that the trends that have emerged since the pandemic have solidified. Its main findings are: 1-Tenants are more likely to move than renew in place when leases expire. 52% of leases studied were new. 2-Tenants are moving to different submarkets. 49% of new leases were in a different submarket location. 3-Downtown experienced the highest level of out-migration; however, that was only 9 tenants over the past year. 4-56% of tenants upgraded their building class-9% more than 4-year average. 5-Tenants that moved downsized by 19%, while tenants that renewed in place shed only 8% of the sq. ft. leased. The study confirmed the flight to quality and downsizing trends that have been observed since 2020. The study did not cover construction activity, but as implied, tenant improvement construction is up significantly. In Pittsburgh, tenant improvement construction was 42% higher in 2023 than in 2022. AHN selects Rycon for AHN South in Canonsburg. RFP issued for $400M AGH tower CM services. $22M Slippery Rock HS out to bid. $46M Steel Valley ES out in 2 weeks. https://conta.cc/3JboYZr