In addition to the extensive challenges faced by the Canadian energy sector, an unprecedented shift in property taxes has been stealing headlines in Calgary. The most notable change is that approximately $250 million worth of taxes were redistributed to commercial properties outside of the downtown core.
- Continued reverse migration into the downtown office market from the beltline office market has put significant pressure on most landlords struggling to attract or retain tenants, forcing many to consider re positioning assets.
- In order to stay competitive with the enticing deals offered by select downtown landlords, Colliers has been seeing more suburban ownership groups entertain forward-looking transactions.
- Examples include extending leases early, offering additional financial inducements, providing extensive free rent periods, and through lease takeovers in order to entice tenants to relocate prior to their existing lease expiry.
- We believe that a discussion surrounding workplace innovation and strategy will be central to many negotiations going forward, as occupants are increasingly focused on the interaction of space with their ability to attract and retain top talent, maximize productivity, improve health & wellness and embody their corporate culture.