H.E.Pennypacker said:
FWIW this site has had a development permit released (approved last fall) to be used as a parking lot until 2021 ... Sure doesn't seem like it will be developed any time soon.
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Thanks for that update. I guess we shouldn't be too surprised given the vacancy rate.
 
That's weird though because what we heard early last year was that CC2 would go ahead just due to the hotel being signed (Fairmont), and the office floors would be left bare. Hmmm. Well let's just hope it goes ahead before 2021, it'll be a nice surprise for all of us if it goes before then ;)
 
UrbanWarrior said:
That's weird though because what we heard early last year was that CC2 would go ahead just due to the hotel being signed (Fairmont), and the office floors would be left bare. Hmmm. Well let's just hope it goes ahead before 2021, it'll be a nice surprise for all of us if it goes before then ;)
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That's what I had heard, but who knows, maybe the vacancy rate is higher than they had predicted? At the time it kind of made sense, if they thought the office vacancy rate would come back down in a couple of years.
 
Lots of things get said. Building unleaseable office space for a hotel never did make much sense.
 
Chances are the max time until 2021 on the parking lot permit isn't tied to their construction start. I'm sure they'd go for max even if they were hoping to start construction a couple years before that. Was there any confirmation if the hotel was going to be at the top of the tower, with office below? If the hotel is signed on that's the only reason I could see why they wouldn't just build the hotel portion first, and add the office floors later on top. The elevators would be separate anyways.
 
maestro said:
Lots of things get said. Building unleaseable office space for a hotel never did make much sense.
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It might have made sense when they were making up these plans. Buildings have been built in Calgary with an anchor tenant taking up less than half the space, perhaps the hotel was their anchor tenant. The DP came out after the oil price drop, but the plans to do this would have been started well before the DP came out, so who knows the mind set at the time. Of course talk is cheap. anyone can state intentions.
 
Perhaps they should consider switching back to condo below the hotel. It could be quite a while until there is enough office demand to fill those floors and I'm sure the hotel doesn't want the lower floors. It also made sense, due to the condo owners getting access to the hotel amenities.
 
Condo or rental would have a better chance than office space. Even in a down market Eau Claire seems to do okay.
 
I don't know if high end condos would be any quicker to sell. It's a moot point. They will sit on the property for 20 years if it makes the most sense. Flipping property (condos) over a better long term return through income isn't huge with pension fund developers. They do invest in condos too. They do it through financing other residential developers. It's not Cadillac Fairview.
 
Weren't the initial plans for this phase showing that it was going to be a res tower with the hotel? But they recently revised the DP for office and hotel use? Curious for clarification.
 
Originally it was going to be residential/hotel but the most recent design was changed to office......probably at a time when office space was still going strong. Who knows now. Like Maestro said they will probably just sit on it, there's no incentive for them to do anything. High end rental market will be heavily saturated once Telus Sky is completed.
 
I wasn't necessarily thinking of high-end rentals but rather any kind of rentals. I know there's a heavy amount of rental development going on right now but it apparently they are filling up the units.
 
Makes more sense now. Is there a link to the revised plans you posted on the previous page (which I assume are the changes to allow for office instead of residential)?
 
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