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Office Space Conversion

maestro said:
It's not just occupancy. Conversion are typical when older buildings revenues are less than capital costs. There have been residential and commercial buildings with good occupancy that have converted from rental to residential condominiums because of a cap on how much they could charge for low quality space.

Calgary buildings are in great shape partly because rents were high enough to continually upgrade older buildings and partly because the inventory isn't that old. I believe office buildings owners will hold out for some time. The high rise residential market is in better shape but, it isn't red hot either.
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I wouldn't be surprised if Calgary sees some conversion at some point, but it's a stars aligning type of deal. Older buildings need to get to a point where the lease rates are really low, and also the high rise residential market needs to be better. At some point the economy will probably pick up, and the high rise market will pick up. with any luck the office market will pick up but like SP had said only the class A or AA market picks up. If we can get those two things to happen together at the same time we would see some conversion.
 
True. There's just so little Class B and lower space of significance that A: it wouldn't make a dent in overall vacancy and B: wouldn't really peak our interest beyond a footnote. The buildings highlighted in the article are exactly background infill.
 
Right now, it's all speculation of course, but it would be nice to see conversions happen. Depending on how things go, Calgary could become very viable for this due to the sheer amount of office space in all classes that it has. Because there is so much class A space, it could be a case where class C and, lower end Class B buildings just never recover and yield good returns again.
 
Hi Group,

I could See Various Bldgs being Renovated as such. This would allow smaller Companies/Business to have Office Space at reasonable costs to suit Their Budgets. OK it may not work for everyone granted but at least its making use of Commercial Space in the Core and Belt Line. Beats having It siting there doing nothing. A Little Bit of Marketing Goes a Long Way. With the recent Wave of Buyouts/Consolidations taking Place I expect to see some Form of Office Space Readjustments in the Core. True at this point, its anyone's guess so Lets See what Happens, Hopefully.

Tnx,
Operater.
 
I could see some buildings getting converted. It wouldn't much right now, as the residential market isn't very strong, but I believe there is a niche market for some loft style residential...something Calgary has very little of at the moment.
 
It looks like some of the posts from the office development thread have moved over here now. I haven't thought about this topic for a while, but I can't help but think this vacancy situation is gonna last a while. It could very well be that we see some conversions in the future.
 
Even though the O&G industry seems to be picking up, office space isn't getting absorbed any quicker. I heard that with Cenovus swallowing up Connoco that there have been some layoffs at Connoco.
 
I wonder if anyone has looked into the idea of converting some space to seniors nursing homes? I mention this because the design isn't typically the same as market condos. Maybe an office building would be an easy conversion?
 
Always_Biking said:
I wonder if anyone has looked into the idea of converting some space to seniors nursing homes? I mention this because the design isn't typically the same as market condos. Maybe an office building would be an easy conversion?
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There's a shortage of seniors homes in Calgary, so maybe it's a good fit.
 
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