Downtown Calgary real estate market turns corner, changes are helping landlords

Last spring there were calls to start rezoning vacant downtown office space so it could be used for housing or other uses. Now, a year later, there are signs the real estate landscape is starting to change.

One of the biggest changes has been the implementation of the Centre City Enterprise District. It’s a three year by-law initiative which waives the need for change of use permits downtown and in the Beltline.

Avison Young Research Manager Susan Thompson told CityNews it’s giving landlords more flexibility.

“It might be easier to get a retail tenant in on the street because they don’t need a change of use permit, they may not need a development permit for small exterior changes or expansions in order to accommodate a new tenant,” she explained.

Some landlords have been converting office space into residential.

“We have seen one already that’s decided to convert an office building into a residential tower and we’ve got another landlord that is considering that for at least one, if not, several of their properties,” said Thompson.

However, it’s not always easy to do, especially with newer buildings.

“The big thing that they’re looking at is location, amenities, the size of the floor plates, so are the floors the right size to be demised into apartments and the right layout for that to work properly,” she said.

Thompson said the bottom line is their forecast shows the city has reached a turning point.

“We are going to start seeing positive absorption of space around Calgary,” she said.

Thompson said it’s still tough for some businesses, but added the bylaw initiative and tax deferrals from council are helping.