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Discussion Starter · #1 ·
an article from the Globe and Mail. link:
http://www.theglobeandmail.com/serv.../?query=winnipeg+emerges+from+winter+dormancy



Property Report: OFFICE SPACE

Winnipeg emerges from winter dormancy

Office vacancy rate rebounds smartly from dire predictions at year-end as various firms play musical chairs


G.A. TAYLOR

Special to The Globe and Mail

May 20, 2008

WINNIPEG -- When Meyers Norris Penny LLP set out to accommodate an expected spurt in staffing levels, it did what a few local companies have opted to do this spring in Winnipeg - play musical chairs in the city's downtown office market.

The chartered accounting firm has agreed to sublet nearly 40,000 square feet in the 33-storey CanWest Global Place tower, taking up some of the space that had been vacated by Agricore United last year when it merged with Saskatchewan Wheat Pool to become Viterra Inc., a global agri-business.

"We need the additional space because of the rapid expansion of people in our firm," said Meyers Norris partner Dan Trotter, adding that the company expects to increase to about 200 people from about 160 over the next year and a half. The new office will also bring the company closer to many of its clients, he added.

The move, planned for this October, is one of several by local companies that have helped create a remarkable turnaround in the fortunes of Winnipeg's downtown office market this spring.
Print Edition - Section Front

Section B Front Enlarge Image
The Globe and Mail

Just five months ago, industry observers had a bleak outlook: A surplus of sublease space had threatened to slow the city's traditionally stable market. By the first quarter, however, the picture had changed considerably. Now, analysts are predicting a more balanced market for the remainder of the year.

CB Richard Ellis had pegged the vacancy rate for class A property at 9 per cent at the end of 2007 but that had recovered to 6.4 per cent in March; class B space improved to 5.6 per cent from 8.9 per cent at the end of the year.

Cushman & Wakefield LePage, meanwhile, reported the class A market vacancy rate was 7.7 per cent at the end of the first quarter, down from 9 per cent at the end of 2007. The change was more muted for the class B market, falling to 7.3 per cent from 8 per cent at the end of the year.

Avison Young Commercial Real Estate (Manitoba) Inc. reported a much more modest change, but an improvement nonetheless: It had recorded a year-end vacancy rate of 7.6 per cent for class A and B properties, and that fell to 6.9 per cent at the end of the first quarter.

(Real estate companies track the numbers in their own ways, resulting in discrepancies in how they report the vacancy rates.)

Paul Kuzina, an office leasing specialist with CB Richard Ellis, said its figures represent the lowest downtown vacancy rate for Winnipeg in the past five years, helped by the absorption of about 225,000 square feet in the first quarter, thanks to "above-average leasing activity."

He attributed the more bullish demand to a strong Manitoba economy. "What we've seen over the years is that the public sector is playing a large part in the Winnipeg economy, and provincial and federal government departments have been expanding. There's an increased need for more space," Mr. Kuzina said.

As well, he said, companies headquartered in Winnipeg, such as Great-West Life Assurance Co., have experienced growth and, as a result, have leased larger blocks of space downtown.

Some of the transactions in early 2008 have included 4,000 square feet of space in the Commodity Exchange Tower going to a Calgary firm, and 68,000 square feet of space in cityplace, an office and retail development, being filled by the federal government, Manitoba Public Insurance and the City of Winnipeg. And, in a separate deal, the federal government leased 25,000 square feet of space in the downtown Grain Exchange Building.

Mr. Kuzina predicted the above-average absorption in the first quarter would ease in the following months and vacancy rates would remain around the March levels for a good portion of the year.

Last December, Avison Young had predicted a tenant's market would occur in 2008 with large chunks of lease and sublet space coming on to the market, including 77,000 square feet to be vacated by Manitoba Hydro when it moves into its new downtown tower and 73,000 square feet formerly occupied by Agricore United in CanWest Global Place. But much of this space has since been absorbed.

"There has been an upswing, particularly in the class A numbers," said Catherine Stoyko, marketing and research co-ordinator for Avison Young and author of its market summary. She expressed surprise by the turnaround of the downtown office market, but couldn't say if this was a long-term trend.

Cushman & Wakefield reported that the "big story" in the class B market was the leasing by Great-West Life of almost all of the soon-to-be vacated space of Centra Gas, a subsidiary of Manitoba Hydro.

"We remain cautiously optimistic that the market will continue to keep vacancy rates at or near present levels for the balance of the year," a Cushman report states. "Going forward, demand will depend largely upon growth in public sector office requirements and the financial services sector."
 

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I remember watching their headquarter's building go up in the 80's..
I could be wrong, but I think it was Smith Carter and associates.
your thinking of investors group they built one canada place across from the bay and it was a firm from vancouver if i'm not mistaken that designed it
 

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Hi

an article from the Globe and Mail. link:
http://www.theglobeandmail.com/serv.../?query=winnipeg+emerges+from+winter+dormancy



Property Report: OFFICE SPACE

Winnipeg emerges from winter dormancy

Office vacancy rate rebounds smartly from dire predictions at year-end as various firms play musical chairs


G.A. TAYLOR

Special to The Globe and Mail

May 20, 2008

WINNIPEG -- When Meyers Norris Penny LLP set out to accommodate an expected spurt in staffing levels, it did what a few local companies have opted to do this spring in Winnipeg - play musical chairs in the city's downtown office market.

The chartered accounting firm has agreed to sublet nearly 40,000 square feet in the 33-storey CanWest Global Place tower, taking up some of the space that had been vacated by Agricore United last year when it merged with Saskatchewan Wheat Pool to become Viterra Inc., a global agri-business.

"We need the additional space because of the rapid expansion of people in our firm," said Meyers Norris partner Dan Trotter, adding that the company expects to increase to about 200 people from about 160 over the next year and a half. The new office will also bring the company closer to many of its clients, he added.

The move, planned for this October, is one of several by local companies that have helped create a remarkable turnaround in the fortunes of Winnipeg's downtown office market this spring.
Print Edition - Section Front

Section B Front Enlarge Image
The Globe and Mail

Just five months ago, industry observers had a bleak outlook: A surplus of sublease space had threatened to slow the city's traditionally stable market. By the first quarter, however, the picture had changed considerably. Now, analysts are predicting a more balanced market for the remainder of the year.

CB Richard Ellis had pegged the vacancy rate for class A property at 9 per cent at the end of 2007 but that had recovered to 6.4 per cent in March; class B space improved to 5.6 per cent from 8.9 per cent at the end of the year.

Cushman & Wakefield LePage, meanwhile, reported the class A market vacancy rate was 7.7 per cent at the end of the first quarter, down from 9 per cent at the end of 2007. The change was more muted for the class B market, falling to 7.3 per cent from 8 per cent at the end of the year.

Avison Young Commercial Real Estate (Manitoba) Inc. reported a much more modest change, but an improvement nonetheless: It had recorded a year-end vacancy rate of 7.6 per cent for class A and B properties, and that fell to 6.9 per cent at the end of the first quarter.

(Real estate companies track the numbers in their own ways, resulting in discrepancies in how they report the vacancy rates.)

Paul Kuzina, an office leasing specialist with CB Richard Ellis, said its figures represent the lowest downtown vacancy rate for Winnipeg in the past five years, helped by the absorption of about 225,000 square feet in the first quarter, thanks to "above-average leasing activity."

He attributed the more bullish demand to a strong Manitoba economy. "What we've seen over the years is that the public sector is playing a large part in the Winnipeg economy, and provincial and federal government departments have been expanding. There's an increased need for more space," Mr. Kuzina said.

As well, he said, companies headquartered in Winnipeg, such as Great-West Life Assurance Co., have experienced growth and, as a result, have leased larger blocks of space downtown.

Some of the transactions in early 2008 have included 4,000 square feet of space in the Commodity Exchange Tower going to a Calgary firm, and 68,000 square feet of space in cityplace, an office and retail development, being filled by the federal government, Manitoba Public Insurance and the City of Winnipeg. And, in a separate deal, the federal government leased 25,000 square feet of space in the downtown Grain Exchange Building.

Mr. Kuzina predicted the above-average absorption in the first quarter would ease in the following months and vacancy rates would remain around the March levels for a good portion of the year.

Last December, Avison Young had predicted a tenant's market would occur in 2008 with large chunks of lease and sublet space coming on to the market, including 77,000 square feet to be vacated by Manitoba Hydro when it moves into its new downtown tower and 73,000 square feet formerly occupied by Agricore United in CanWest Global Place. But much of this space has since been absorbed.

"There has been an upswing, particularly in the class A numbers," said Catherine Stoyko, marketing and research co-ordinator for Avison Young and author of its market summary. She expressed surprise by the turnaround of the downtown office market, but couldn't say if this was a long-term trend.

Cushman & Wakefield reported that the "big story" in the class B market was the leasing by Great-West Life of almost all of the soon-to-be vacated space of Centra Gas, a subsidiary of Manitoba Hydro.

"We remain cautiously optimistic that the market will continue to keep vacancy rates at or near present levels for the balance of the year," a Cushman report states. "Going forward, demand will depend largely upon growth in public sector office requirements and the financial services sector."
You need more pictures...
~d
 

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Thanks for the article Taller...

This article makes me think even more about the pros and cons of building a new tallest vs a few smaller developments.
Of course, a new tallest--sleek and sparkling--would be a dream come true, but so would seeing four small office buildings replace four vacant lots. Great West would be the only company in the forseeable future that would engage in having a new tallest built, while developers would be more inclined to build smaller buildings to suit! I am not a fan of much of the increase being credited to government; an increase in the private sector's demand for office space is a better gauge than relying on taxpayers...

As long as the smaller office buildings are like this...



and NOT this...



I will be happy!!!!!!!!!!!!!!!!
 

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Discussion Starter · #7 ·
your thinking of investors group they built one canada place across from the bay and it was a firm from vancouver if i'm not mistaken that designed it
I was referring to the Great West Life building near the Legislature.. the square one. I am pretty sure it was Smith Carter. The Investors Group one went up after I left town, but I know which one you mean. I'm happy to see new things going up in the 'Peg! :cheers:
 
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