will calgary’s office markets land softly or continue to push …€¦ · roger hanks, skyline...
TRANSCRIPT
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NEWSSPRING 2014
Page 1 - Will Calgary’s Office Markets Land Softly or Continue to Push Ahead?
Page 4 - What is Work Anyway?
Page 6 - BOMA Insider
Page 8 - On the Ground at YYC
Will Calgary’s Office Markets Land Softly or Continue to Push Ahead?
TOC
Sandy McNair
Looking at the history of Calgary’s real estate mar-kets provides valuable perspective as we anticipate our future. Calgary’s office markets experienced
a hard landing in 1982. On a single Friday afternoon, the architectural firm I worked for received news from four different clients that each of their 50-storey office towers were now cancelled. But by then it was already too late for a soft landing. As the 60-year completions
chart shows (Figure 1), more than 20 million square feet of office space had been completed in the previous five years (1978-1982). This compares to a very similar amount, 22.6 million square feet of office space that had been, or will be, completed in the much longer 11-year period from 2007-2018.
Unlike today, the office inventory in the late ’70s and early ’80s was growing faster than the economy
2
BOMA Calgary NewsBOMA Calgary News is a co-publication of BOMA Calgary and Business in Calgary.
Business in Calgary 1025, 101 - 6 Ave. SW, Calgary, AB T2P 3P4Tel: 403.264.3270 • Fax: [email protected]
BOMA Calgary120, 4954 Richard Road SW, Calgary, AB T3E 6L1Email: [email protected] • Web: www.boma.caTel: 403.237.0559 • Fax: 403.266.5876
Communications CommitteeChair - Leah Stewart,
Sizeland Evans Interior DesignBobbi Joan O’Neil, Business in CalgaryGiovanni Worsley, MNP LLPJay de Nance, Fairfield Commercial Real EstateKim Bogner, 20 Vic ManagementRita Reid, First Capital RealtyRoger Hanks, Skyline RoofingLia Robinson, BOMA Calgary
Board of DirectorsCHAIRKen Dixon, ATCO GroupSECRETARY TREASURERChris Nasim, GWL Realty AdvisorsPAST CHAIRChris Howard, Avison Young Real EstatePRESIDENT & CSOWilliam G. R. Partridge, CAE, BOMA Calgary
DirectorsFred Edwards, Servpro CleaningSteve Weston, Brookfield PropertiesMarjorie Cone, H & R Property Management Ltd.Robert Brazzell, Altus GroupCorrine Jackman, Hopewell Real Estate ServicesCam Gresko, Cadillac FairviewDustin Engel, Alberta InfrastructureRichard Morden, Bentall Kennedy (Canada) LPLee Thiessen, MNP LLPLoy Sullivan, 20 VIC ManagementJay de Nance, Fairfield Commercial Real EstatePearl Madryga, Sun Life Assurance Company
The Building Owners and Managers Association of Calgary publishes BOMA Calgary News quarterly. For advertising rates and information contact Business in Calgary. Publication of advertising should not be deemed as endorsement by BOMA Calgary. The publisher re-serves the right in its sole and absolute discretion to reject any advertising at any time submitted by any party. Material contained herein does not necessarily reflect the opinion of BOMA Calgary, its members or its staff.
© 2014 by BOMA Calgary.Printed in Canada.
or the population of office workers could grow. As the inventory growth chart shows (Figure 2), inventory growth rates in the late ’70s ranged from 10 to 20 per cent or more. The economy, the population and the pool of office workers could not grow that fast and, as a result, the Cal-gary office markets experienced a very hard landing. Interest rates that spiked at 21 per cent, oil prices that failed to reach the anticipated $60 and bad energy policy from Ottawa made matters worse.
The office inventory growth rate in the current cycle of roughly 2.5 to 3.5 per cent is very close to actual economic growth rates, actual popu-lation growth rates and the office worker growth rates that Calgary has experienced during the past decade.
The outlook, however, is less clear. The wind is no longer at our collec-tive backs. Even though the longer-term outlook for energy is positive, the global declines and subsequent muted rebounds in business and con-sumer confidence, economic activity and access to capital are being felt in Calgary’s office markets, too. Leasing activity has slowed as some energy firms’ plans to grow and invest are delayed or scaled back. Yet, some energy firms are continuing to invest billions in expansion projects. Calgary’s energy firms and their suppliers have assembled and invested in uniquely talented people, so letting huge numbers of them go would be both painful and expensive.
Looking ahead, many different scenarios are possible. As only a reference point we have generated one scenario focused on downtown Calgary. This sce-nario assumes no incremental demand: that all the commitments to lease that are in place are honoured; the buildings that are currently under construction are completed; that the tenants respect the forward leasing commitments they have made and move out of their existing space and into new space; and that there is no new growth or reduction in demand for space, effectively everyone simply trades places. Figure 3 shows the total vacant rate for the downtown
| |
3
Calgary office market rising from its current level of 4.5 to 6.4 per cent by the end of 2014, increasing again to 9.4 per cent in 2015 and 2016, and continuing to rise to 12.6 per cent in 2017 and then to 15.3 per cent in 2018.
While the overall vacancy rate is important there are other factors to consider. First, there are several dif-ferent office markets within Calgary. Downtown, beltline and suburbs all have distinct features and drivers. However, within downtown the options for tenants vary by size of space – small, mid-size, large and very large tenants have very different choices. The number of appropriate choices matters. Second, the velocity in the leasing market can affect pricing as much, or more than, the vacancy rate. A market that completes a lease trans-action each week will have different pricing than a market that completes only one leasing transaction a quarter. While most landlords benefit from a tight market, as it softens, the pain will not be felt equally.
When we compare today to the mid-1980s a few key differences add perspective: a) inventory growth rates are more modest and closer to actual growth in demand for space; b) better market information leading to better decisions; c) lower vacancy and availability rates today; d) stron-ger landlords and in many cases stronger tenants; e) capital budgets are in many cases being scaled back, not eliminated; f) the energy indus-try is now better able to focus on production and technology efficien-cies rather than exploration risks; g) better alignment of goals nationally and internationally and an appar-ent willingness for government and industry to take positive action.
So while there are still lots of risks and room for significant positive and negative surprises, I see an environ-ment where better managers, better strategies and better buildings will outperform the rest of the market. •
SANDY MCNAIR IS PRESIDENT OF ALTUS INSITE, CANADA’S LEADING PROVIDER
OF MARKET DATA AND PERSPECTIVE TO THE COMMERCIAL REAL ESTATE INDUSTRY.
FOR MORE INFORMATION VISIT WWW.ALTUSINSITE.COM.
Figure 3
Figure 1
Figure 2
2
BOMA Calgary NewsBOMA Calgary News is a co-publication of BOMA Calgary and Business in Calgary.
Business in Calgary 1025, 101 - 6 Ave. SW, Calgary, AB T2P 3P4Tel: 403.264.3270 • Fax: [email protected]
BOMA Calgary120, 4954 Richard Road SW, Calgary, AB T3E 6L1Email: [email protected] • Web: www.boma.caTel: 403.237.0559 • Fax: 403.266.5876
Communications CommitteeChair - Leah Stewart,
Sizeland Evans Interior DesignBobbi Joan O’Neil, Business in CalgaryGiovanni Worsley, MNP LLPJay de Nance, Fairfield Commercial Real EstateKim Bogner, 20 Vic ManagementRita Reid, First Capital RealtyRoger Hanks, Skyline RoofingLia Robinson, BOMA Calgary
Board of DirectorsCHAIRKen Dixon, ATCO GroupSECRETARY TREASURERChris Nasim, GWL Realty AdvisorsPAST CHAIRChris Howard, Avison Young Real EstatePRESIDENT & CSOWilliam G. R. Partridge, CAE, BOMA Calgary
DirectorsFred Edwards, Servpro CleaningSteve Weston, Brookfield PropertiesMarjorie Cone, H & R Property Management Ltd.Robert Brazzell, Altus GroupCorrine Jackman, Hopewell Real Estate ServicesCam Gresko, Cadillac FairviewDustin Engel, Alberta InfrastructureRichard Morden, Bentall Kennedy (Canada) LPLee Thiessen, MNP LLPLoy Sullivan, 20 VIC ManagementJay de Nance, Fairfield Commercial Real EstatePearl Madryga, Sun Life Assurance Company
The Building Owners and Managers Association of Calgary publishes BOMA Calgary News quarterly. For advertising rates and information contact Business in Calgary. Publication of advertising should not be deemed as endorsement by BOMA Calgary. The publisher re-serves the right in its sole and absolute discretion to reject any advertising at any time submitted by any party. Material contained herein does not necessarily reflect the opinion of BOMA Calgary, its members or its staff.
© 2014 by BOMA Calgary.Printed in Canada.
or the population of office workers could grow. As the inventory growth chart shows (Figure 2), inventory growth rates in the late ’70s ranged from 10 to 20 per cent or more. The economy, the population and the pool of office workers could not grow that fast and, as a result, the Cal-gary office markets experienced a very hard landing. Interest rates that spiked at 21 per cent, oil prices that failed to reach the anticipated $60 and bad energy policy from Ottawa made matters worse.
The office inventory growth rate in the current cycle of roughly 2.5 to 3.5 per cent is very close to actual economic growth rates, actual popu-lation growth rates and the office worker growth rates that Calgary has experienced during the past decade.
The outlook, however, is less clear. The wind is no longer at our collec-tive backs. Even though the longer-term outlook for energy is positive, the global declines and subsequent muted rebounds in business and con-sumer confidence, economic activity and access to capital are being felt in Calgary’s office markets, too. Leasing activity has slowed as some energy firms’ plans to grow and invest are delayed or scaled back. Yet, some energy firms are continuing to invest billions in expansion projects. Calgary’s energy firms and their suppliers have assembled and invested in uniquely talented people, so letting huge numbers of them go would be both painful and expensive.
Looking ahead, many different scenarios are possible. As only a reference point we have generated one scenario focused on downtown Calgary. This sce-nario assumes no incremental demand: that all the commitments to lease that are in place are honoured; the buildings that are currently under construction are completed; that the tenants respect the forward leasing commitments they have made and move out of their existing space and into new space; and that there is no new growth or reduction in demand for space, effectively everyone simply trades places. Figure 3 shows the total vacant rate for the downtown
| |
3
Calgary office market rising from its current level of 4.5 to 6.4 per cent by the end of 2014, increasing again to 9.4 per cent in 2015 and 2016, and continuing to rise to 12.6 per cent in 2017 and then to 15.3 per cent in 2018.
While the overall vacancy rate is important there are other factors to consider. First, there are several dif-ferent office markets within Calgary. Downtown, beltline and suburbs all have distinct features and drivers. However, within downtown the options for tenants vary by size of space – small, mid-size, large and very large tenants have very different choices. The number of appropriate choices matters. Second, the velocity in the leasing market can affect pricing as much, or more than, the vacancy rate. A market that completes a lease trans-action each week will have different pricing than a market that completes only one leasing transaction a quarter. While most landlords benefit from a tight market, as it softens, the pain will not be felt equally.
When we compare today to the mid-1980s a few key differences add perspective: a) inventory growth rates are more modest and closer to actual growth in demand for space; b) better market information leading to better decisions; c) lower vacancy and availability rates today; d) stron-ger landlords and in many cases stronger tenants; e) capital budgets are in many cases being scaled back, not eliminated; f) the energy indus-try is now better able to focus on production and technology efficien-cies rather than exploration risks; g) better alignment of goals nationally and internationally and an appar-ent willingness for government and industry to take positive action.
So while there are still lots of risks and room for significant positive and negative surprises, I see an environ-ment where better managers, better strategies and better buildings will outperform the rest of the market. •
SANDY MCNAIR IS PRESIDENT OF ALTUS INSITE, CANADA’S LEADING PROVIDER
OF MARKET DATA AND PERSPECTIVE TO THE COMMERCIAL REAL ESTATE INDUSTRY.
FOR MORE INFORMATION VISIT WWW.ALTUSINSITE.COM.
Figure 3
Figure 1
Figure 2
4
As a business person who travels a reasonable amount, I am sometimes amazed at how we have progressed with our communications tools.
And having just returned from our national governance meetings, I am still fresh with the realization that I could do just about everything I needed to do work-wise with my portable technology devices. And then I reminded myself how technology changes our world – how we work, where we work and quite possibly what work is
– and how this dynamic might influence the commercial real estate sector in the years ahead.
As I see it, there are two principal drivers of this change: the evolution of technology itself and of its capabilities; and secondly, the generational influence that determines how people use the technology.
The Swedish technology firm Ericsson has completed a survey that suggests by the year 2020 – that is six years from now – there will be 50 billion connected devices in the world. So how do we come to terms with how these connected devices will change the way we work, learn and communicate?
Such a degree of connectivity suggests that the future focus of IT, human resources and real estate must col-laborate and create a shared vision for the corporate workspace to address the desire of people from multiple generations and their ability to work when and where they need to work.
This is important as the trends reported in multiple surveys strongly suggest that workplace flexibility will evolve from a simple perk to a norm and a corpo-rate culture imperative. Those companies that have made a decision to embrace workplace flexibility have seen tangible business results from making workspace innovation a strategic priority. Improved worker pro-ductivity and reduced real estate costs – $10 to $15 million annually for American Express – are clear advantages. Another company, Aetna, has 47 per cent of its workforce employed remotely and shed 2.7 mil-lion square feet of office space, realizing $78 million in savings. It is significant for them and significant for the real estate sector.
In the hospitality sector, Marriott’s Workspace on Demand allows anyone to book “office” space in the hotel lobby as easily as they can book a room for over-night stays not only increasing the place where work can be done, but virtually eliminating “downtime” associ-ated with business travel.
President’s Report
By William G.R. Partridge, CAE
President & Chief Staff Officer
What is Work Anyway?
5
Soon airlines will have Wi-Fi as a standard amenity (some U.S. airlines already provide it) and it will be pos-sible to utilize that time in the air in more productive ways.
Our industry, just as our corporate culture, is evolving quickly and in significant ways that will force the indus-try to adapt to these changes. Now is the time for us to have the discussion and to consider the ways to adapt to the future industry drivers. •
As I see it, there are two principal
drivers of this change: the evolution of technology itself and of its capabilities;
and secondly, the generational influence that
determines how people use the technology.
As fiduciaries, we safeguard our clients’ interests and assets through every turn of the real estate cycle by leveraging our extensive build-to-core capability and our transaction volume capacity. From 2004 to 2013, Bentall Kennedy has:
Real estate investment expertise for every possible future
Fiduciaries. First and foremost.
View our most recent developments and transactions at bentallkennedy.com
Developed
Billion in assets
$4.7+Acquired
Billion in assets
$11.2+Disposed
Billion in assets
$9.5+
4
As a business person who travels a reasonable amount, I am sometimes amazed at how we have progressed with our communications tools.
And having just returned from our national governance meetings, I am still fresh with the realization that I could do just about everything I needed to do work-wise with my portable technology devices. And then I reminded myself how technology changes our world – how we work, where we work and quite possibly what work is
– and how this dynamic might influence the commercial real estate sector in the years ahead.
As I see it, there are two principal drivers of this change: the evolution of technology itself and of its capabilities; and secondly, the generational influence that determines how people use the technology.
The Swedish technology firm Ericsson has completed a survey that suggests by the year 2020 – that is six years from now – there will be 50 billion connected devices in the world. So how do we come to terms with how these connected devices will change the way we work, learn and communicate?
Such a degree of connectivity suggests that the future focus of IT, human resources and real estate must col-laborate and create a shared vision for the corporate workspace to address the desire of people from multiple generations and their ability to work when and where they need to work.
This is important as the trends reported in multiple surveys strongly suggest that workplace flexibility will evolve from a simple perk to a norm and a corpo-rate culture imperative. Those companies that have made a decision to embrace workplace flexibility have seen tangible business results from making workspace innovation a strategic priority. Improved worker pro-ductivity and reduced real estate costs – $10 to $15 million annually for American Express – are clear advantages. Another company, Aetna, has 47 per cent of its workforce employed remotely and shed 2.7 mil-lion square feet of office space, realizing $78 million in savings. It is significant for them and significant for the real estate sector.
In the hospitality sector, Marriott’s Workspace on Demand allows anyone to book “office” space in the hotel lobby as easily as they can book a room for over-night stays not only increasing the place where work can be done, but virtually eliminating “downtime” associ-ated with business travel.
President’s Report
By William G.R. Partridge, CAE
President & Chief Staff Officer
What is Work Anyway?
5
Soon airlines will have Wi-Fi as a standard amenity (some U.S. airlines already provide it) and it will be pos-sible to utilize that time in the air in more productive ways.
Our industry, just as our corporate culture, is evolving quickly and in significant ways that will force the indus-try to adapt to these changes. Now is the time for us to have the discussion and to consider the ways to adapt to the future industry drivers. •
As I see it, there are two principal
drivers of this change: the evolution of technology itself and of its capabilities;
and secondly, the generational influence that
determines how people use the technology.
As fiduciaries, we safeguard our clients’ interests and assets through every turn of the real estate cycle by leveraging our extensive build-to-core capability and our transaction volume capacity. From 2004 to 2013, Bentall Kennedy has:
Real estate investment expertise for every possible future
Fiduciaries. First and foremost.
View our most recent developments and transactions at bentallkennedy.com
Developed
Billion in assets
$4.7+Acquired
Billion in assets
$11.2+Disposed
Billion in assets
$9.5+
6
BOMA Insider
The GWL Realty Advisors team accepts the Level 4 Recertification for Gulf Canada Square.
Ken Dixon, presents Dundee Realty Management Corp. team with their BOMA BESt Certificates for 606 Fourth, Level 3 and 441 5 Ave SW at Level 2.
The Dundee Realty Management Corp. team accepts the BOMA BESt Level 3 Certificate for 444 Seventh, Level 2 Certificate for Northland Building & Park at Fish Creek and Level 1 for Westview Building and Horton Park A, B & C
The GWL Realty Advisors team for First Canadian Centre receive their BOMA BESt Level 3 Certificate.
The Arcturus Realty team accepts their BOMA BESt Level 3 Certificate for 639 5 Ave SW.
Ken Dixon, chair-elect and Bill Partridge, president, present the BOMA BESt Level 3 Recertification for Western Canadian Place to Suzy Mah, David Middleton and Robin Needham, all GWL Realty Advisors.
Caroline Newton, Cadillac Fairview accepts the BOMA BESt Level 2 Certificate for Market Mall
Excellence Awards Co-Title Sponsor
7
The BOMA Calgary Foundation presents a $15,000 donation to Canadian Red Cross for Alberta Flood Relief.
Golf Classic Co-Title Sponsor
The BOMA team (L-R) Bill Partridge, Aydan Aslan, Lloyd Suchet, Lia Robinson, Ashley Grennier and Liz Krill at the BOMA Christmas Luncheon
Ken Dixon, ATCO Group and Bill Partridge thank Boaz Shilmover, ARTE Group for his three years as BOMA Calgary Corporate Partner.
www.SerVantage.ca
EverydayPreston Manning addresses BOMA Calgary members at the January 49th Annual General Meeting
Carmel Smetschka and Steve Walton, Golf Committee co-chairs present the ENMAX BOMA Golf Classic donation to The BOMA Calgary Foundation.
6
BOMA Insider
The GWL Realty Advisors team accepts the Level 4 Recertification for Gulf Canada Square.
Ken Dixon, presents Dundee Realty Management Corp. team with their BOMA BESt Certificates for 606 Fourth, Level 3 and 441 5 Ave SW at Level 2.
The Dundee Realty Management Corp. team accepts the BOMA BESt Level 3 Certificate for 444 Seventh, Level 2 Certificate for Northland Building & Park at Fish Creek and Level 1 for Westview Building and Horton Park A, B & C
The GWL Realty Advisors team for First Canadian Centre receive their BOMA BESt Level 3 Certificate.
The Arcturus Realty team accepts their BOMA BESt Level 3 Certificate for 639 5 Ave SW.
Ken Dixon, chair-elect and Bill Partridge, president, present the BOMA BESt Level 3 Recertification for Western Canadian Place to Suzy Mah, David Middleton and Robin Needham, all GWL Realty Advisors.
Caroline Newton, Cadillac Fairview accepts the BOMA BESt Level 2 Certificate for Market Mall
Excellence Awards Co-Title Sponsor
7
The BOMA Calgary Foundation presents a $15,000 donation to Canadian Red Cross for Alberta Flood Relief.
Golf Classic Co-Title Sponsor
The BOMA team (L-R) Bill Partridge, Aydan Aslan, Lloyd Suchet, Lia Robinson, Ashley Grennier and Liz Krill at the BOMA Christmas Luncheon
Ken Dixon, ATCO Group and Bill Partridge thank Boaz Shilmover, ARTE Group for his three years as BOMA Calgary Corporate Partner.
Western Canada’s leadingjanitorial and maintenance service provider
www.SerVantage.ca
We’re doing it right...Everyday
SerVantage Services Group
(toll free) [email protected]
Preston Manning addresses BOMA Calgary members at the January 49th Annual General Meeting
Carmel Smetschka and Steve Walton, Golf Committee co-chairs present the ENMAX BOMA Golf Classic donation to The BOMA Calgary Foundation.
8
Those who can remember just what our interna-tional airport looked like when the Calgary Airport Authority assumed responsibility for its operations
and expansion in July of 1992 must be amazed at its growth. To those of us who remember walking out onto the tarmac to climb the steps into a plane at the old terminal located at the end of Aviation Blvd., it’s just a big “WOW – who’d a thought.”
Like Topsy it seems to never stop growing and there is a lot more to come; the 10-year plan calls for another 700 acres of aviation, industry and recre-ational development.
The authority has done a magnificent job in managing the controlled, physical growth of the airport lands, but what is just as exciting to me is the economic impact – and the prestige – it has brought to this city.
YYC is busy.Consider that 14 million passengers per year use the
facility and it employs more than 24,000 people, helping to provide an economic impact in the area of $6 billion annually.
There’s lots of construction going on today with the two big ones being the new north/south runway and the new International Facilities Project.
On the Ground at YYCBy David Parker
Canada’s Top Security Company | paladinsecurity.com
9
The $620-million runway – that is 14,000 feet long and 200 feet wide and capable of handling the world’s larg-est aircraft – will be operational in June. A huge job that required some 260,000 cubic metres of concrete, 500,000 square metres of gravel and required the instal-lation of over 5,000 runway and taxiway lights.
An easier construction project to follow by passengers has been the new international terminal that will rise five levels above the ground to the south of the current airport terminal.
Scheduled to be in service by the fall of next year, its peak on-site workforce sits at 1,600. As a green building it can boast of 660 kilometres of in-floor radiant heat-ing tubes, cogeneration will save almost 5,000 tonnes of CO2 per year and 10 million litres of rainwater will be harvested and recycled annually.
It will provide 22 additional aircraft gates and 300 more airport hotel rooms on its north end.
But there’s lots more development underway within airport lands.
A new 125,000-square-foot air cargo facility has been built and is already fully leased in the Deerfoot north area and plans are to replicate it on an adjacent site.
Art Sales and RentalsFeaturing Historical and Contemporary Canadian Art | With over 1,500 original works available#3, 215 - 39th Avenue N.E., Calgary, Alberta T2E 7E3 | For hours, please call 403.277.7252
www.fortunefineart.com
Glenn Olson
“Reflective Moment” | Acrylic | 16” x 24”
WE HAVE A STRONG NATIONAL PRESENCE TO HELP SERVE THE
DIVERSE NEEDS OF OUR TENANTS
Fully integratedtenant solutions
www.dundeerealty.com403.212.7114
To view our portfolio of properties, visit:
Or contact us at:
Northwest Territories British Columbia Alberta Saskatchewan
Ontario Quebéc New Brunswick Prince Edward Island Nova Scotia
8
Those who can remember just what our interna-tional airport looked like when the Calgary Airport Authority assumed responsibility for its operations
and expansion in July of 1992 must be amazed at its growth. To those of us who remember walking out onto the tarmac to climb the steps into a plane at the old terminal located at the end of Aviation Blvd., it’s just a big “WOW – who’d a thought.”
Like Topsy it seems to never stop growing and there is a lot more to come; the 10-year plan calls for another 700 acres of aviation, industry and recre-ational development.
The authority has done a magnificent job in managing the controlled, physical growth of the airport lands, but what is just as exciting to me is the economic impact – and the prestige – it has brought to this city.
YYC is busy.Consider that 14 million passengers per year use the
facility and it employs more than 24,000 people, helping to provide an economic impact in the area of $6 billion annually.
There’s lots of construction going on today with the two big ones being the new north/south runway and the new International Facilities Project.
On the Ground at YYCBy David Parker
Canada’s Top Security Company | paladinsecurity.com
9
The $620-million runway – that is 14,000 feet long and 200 feet wide and capable of handling the world’s larg-est aircraft – will be operational in June. A huge job that required some 260,000 cubic metres of concrete, 500,000 square metres of gravel and required the instal-lation of over 5,000 runway and taxiway lights.
An easier construction project to follow by passengers has been the new international terminal that will rise five levels above the ground to the south of the current airport terminal.
Scheduled to be in service by the fall of next year, its peak on-site workforce sits at 1,600. As a green building it can boast of 660 kilometres of in-floor radiant heat-ing tubes, cogeneration will save almost 5,000 tonnes of CO2 per year and 10 million litres of rainwater will be harvested and recycled annually.
It will provide 22 additional aircraft gates and 300 more airport hotel rooms on its north end.
But there’s lots more development underway within airport lands.
A new 125,000-square-foot air cargo facility has been built and is already fully leased in the Deerfoot north area and plans are to replicate it on an adjacent site.
Art Sales and RentalsFeaturing Historical and Contemporary Canadian Art | With over 1,500 original works available#3, 215 - 39th Avenue N.E., Calgary, Alberta T2E 7E3 | For hours, please call 403.277.7252
www.fortunefineart.com
Glenn Olson
“Reflective Moment” | Acrylic | 16” x 24”
Art Sales and Rentals
WE HAVE A STRONG NATIONAL PRESENCE TO HELP SERVE THE
DIVERSE NEEDS OF OUR TENANTS
Fully integratedtenant solutions
www.dundeerealty.com403.212.7114
To view our portfolio of properties, visit:
Or contact us at:
Northwest Territories British Columbia Alberta Saskatchewan
Ontario Quebéc New Brunswick Prince Edward Island Nova Scotia
10
The northwest is also where Sun-west Aviation opened its new Aero Court location with three con-temporary departure lounges and
parking for over 600 vehicles. Next door is the home of Million Air with plans for three hangars and a classy FBO (Fixed-Base Operations)
building. Two 40,000-square-foot hangars are built and fully leased. North West Geomatics is in an adjoining free-standing building and a new Acclaim Hotel on the far northwest corner of the airport overlooking Deerfoot Trail is to be built offering 105 rooms and a res-taurant in Phase 1.
Over on the south side fronting onto McKnight Blvd., at Aviation Blvd., Atlas Development is well underway with its commercial developments where the drive-thru portion of a McDonald’s is open.
And to the east of the Art Smith Aero Centre, Norcal Group is building Airways Crossing; an 88,000-square-foot facility to accommodate 18 bay units.
I see as much activity at the air-port as I see in many cities, but there is much more happening on lands surrounding YYC.
Oxford, Melcor, Hopewell, Enright, Trinity, and WAM are some of the developers that will benefit in being close to the airport, the Queen Eliz-abeth II Highway and Stoney Trail. And with 96th Avenue NE now open over the Deerfoot to Airport Trail, I expect the city to begin looking at its stalled Aurora Business Park in Har-vest Hills again. •
Construction at the Calgary Airport. Photo by Ewan Nicholson Photography.
Thank youWayne Chiu
Chiu School of Business
Wayne Chiu brings a brand of leadership in the business sector and community that is equal parts 21st century innovation and classic Calgary. Along with wife and business partner Eleanor, Wayne has grown Trico Homes and the Trico Charitable Foundation into major successes for both their business and community achievements.
We thank them for their longtime and generous support of Bow Valley College. In honour of this record of leadership we are proud to introduce the newly named Bow Valley College Chiu School of Business.
Pinnacle Group of Companies | 30th Anniversary | 1
Written by Mary Savage
Drawing on three decades of experience