Edmonton’s ‘character’ office space vacancy rose 17.7% over the past 5 years
Vacancy in character office space Edmonton
- Character buildings are generally defined as having older construction dates (pre-1950s) typically having a brick and beam style of construction. Representing 2.3% of Edmonton’s total office inventory, character buildings are a niche class of office, however they are typically known as prominent and historically significant buildings. The challenges faced when leasing these properties include restrictive floorplates that put limitations on tenant sizing options, limited parking on-site, street, or underground, a lack of on-site amenities, and generally higher utility & maintenance costs brought on by the age of the building and high cost of upkeep.
- Tenants that typically localize in these types of buildings include smaller companies from the tech sector, engineering, architecture, and consulting. These are also industries that have had an easier transition to remote work, more so than other sectors, and the challenges in getting these tenants to return to the office are evidenced by the increase in vacancies since the start of the pandemic in late 2019. With the return-to-work movement continuing to gain momentum, it’s possible we see the vacancy in these spaces begin to decline in the future.
- What attracts tenants to these types of properties is subjective - it’s a look and a feel of these spaces that present a certain image about the companies that occupy them. Typically located in downtown and central areas of a city, the demand comes from businesses that prefer central urbanized environments, and those that see the value in contributing to a diverse and historical urban landscape.
December 10, 2024
