News   GLOBAL  |  Apr 02, 2020
 4.8K     0 
News   GLOBAL  |  Apr 01, 2020
 12K     0 
News   GLOBAL  |  Apr 01, 2020
 2.2K     0 

zagox

Active Member
Member Bio
Joined
Jul 5, 2018
Messages
308
Reaction score
1,013
City:
Calgary

One of my favorite places in Calgary, Oak Tree is closing its doors permanently, along with Midtown just up the road. So now Julios spot is empty along with oak tree, burger 320, midtown, almost every commercial unit in the kensington gate building...all empty. I love kensington but its getting to the point where its no longer a destination neighborhood because half of the commercial spaces are empty

Maybe someone with more insight into commercial real estate can give a good explanation, but i don't get it, what do landlords gain by charging such high rents that no one can afford the space? seems like a lose-lose situation to me.

I have heard that the landlord of the Midtown building has been keen to push them out to redevelop - maybe speculation but they did mention they had trouble with the landlord.

As to the rest of Kensington, the general consensus seems to be that there are a lot of big national investment funds that own properties and have been reluctant to lower rents as it would force them to mark down the value of their buildings to their investors. I presume that game is over and a broad and fairly substantial mark-down of commercial rent is coming. The issue will be bankruptcy and foreclosures of commercial property that could slow down the leasing process.
 

UrbanWarrior

Senior Member
Member Bio
Joined
Mar 29, 2016
Messages
4,700
Reaction score
20,890
City:
Calgary

One of my favorite places in Calgary, Oak Tree is closing its doors permanently, along with Midtown just up the road. So now Julios spot is empty along with oak tree, burger 320, midtown, almost every commercial unit in the kensington gate building...all empty. I love kensington but its getting to the point where its no longer a destination neighborhood because half of the commercial spaces are empty

Maybe someone with more insight into commercial real estate can give a good explanation, but i don't get it, what do landlords gain by charging such high rents that no one can afford the space? seems like a lose-lose situation to me.

The loss of Oak Tree, Midtown, and 320 are brutal, and it's a really fair question; what the hell are landlords in this city thinking? We're 5 years into an economic stagnation, and it's about to get worse than it has ever been.

Obviously it's not just the landlords though. With the coming economic recession/depression, the government is going to have to intervene in the banking sector to force banks to do something about mortgage stuff (I don't know much about finance ?‍♂️) so that we don't see 10 to 20% of businesses closing and 20 to 30% of people losing their homes over the next 2 years. Shit's whack.
 

MichaelS

Senior Member
Member Bio
Joined
Jul 6, 2016
Messages
1,747
Reaction score
9,334
The local government would also do well to try and reduce commercial property taxes. 10th Street has also had it difficult, with a couple of years of disruption for the streetscape reconstruction project back in 2017ish, and I have heard there is now an additional line item on those properties' tax bills, for the local improvement. So, not only were they subject to a few years of disruption due to construction, but they get an even higher tax bill for it.
 

zagox

Active Member
Member Bio
Joined
Jul 5, 2018
Messages
308
Reaction score
1,013
City:
Calgary
The local government would also do well to try and reduce commercial property taxes. 10th Street has also had it difficult, with a couple of years of disruption for the streetscape reconstruction project back in 2017ish, and I have heard there is now an additional line item on those properties' tax bills, for the local improvement. So, not only were they subject to a few years of disruption due to construction, but they get an even higher tax bill for it.

That's an issue for existing triple-net leaseholders who got burned with unexpectedly higher taxes, but rents should reset down to take into account the current level of commercial property tax.

This isn't like downtown office space where the operating costs plus taxes exceed the market rent. I'm pretty sure that the potential profits from operating retail on 10th street exceed the operating costs plus property taxes. Over time that should drive rents down to a sustainable level. It could be a long road to get there though, especially if bankrupt landlords and leaseholders gum up the lease-up process.
 

Cow-garian

New Member
Member Bio
Joined
Nov 24, 2021
Messages
3
Reaction score
4
Also, with the Sunnyside flood barrier plan now picking up steam, along with more infills and the new 9-story mid-rise 'The Hive' being constructed hopefully this encourages more people to come back to Kensington. I agree with the above, it hasn't been the same since COVID. But I guess many places have been affected.

Fingers crossed!
 

Surrealplaces

Administrator
Staff member
Member Bio
Joined
Sep 24, 2015
Messages
9,523
Reaction score
34,256
City:
Calgary
Also, with the Sunnyside flood barrier plan now picking up steam, along with more infills and the new 9-story mid-rise 'The Hive' being constructed hopefully this encourages more people to come back to Kensington. I agree with the above, it hasn't been the same since COVID. But I guess many places have been affected.

Fingers crossed!
Archer is also under construction, and another proposal near Gladstone Rd moving closer, things are looking up for Kensington.
 

zagox

Active Member
Member Bio
Joined
Jul 5, 2018
Messages
308
Reaction score
1,013
City:
Calgary
Also, with the Sunnyside flood barrier plan now picking up steam, along with more infills and the new 9-story mid-rise 'The Hive' being constructed hopefully this encourages more people to come back to Kensington. I agree with the above, it hasn't been the same since COVID. But I guess many places have been affected.

Fingers crossed!

The Sunnyside flood barrier plan is losing steam, now it’s a battle between flood protection and urban tree canopy. Could be down the ‘engagement’ rabbit hole for a few years.

JEMM pulled the DP on the Hive at the last minute at SDAB and it’s a bit of a mystery when they are going next.

But, we have meatballs and sweet sushi pocket thingies, so I agree, Kensington is on the up.
 

Cow-garian

New Member
Member Bio
Joined
Nov 24, 2021
Messages
3
Reaction score
4
I don't have one of those fancy cameras to take nice pictures, but this citizen lead initiative is well underway (Community Garden now has a skatepark). City is apparently re-analyzing the ContainR triangle site. From my understanding it's meant for future affordable housing. Again, as mentioned above trying to reactivate key areas of Kensington, coupled with densification has to equal some positive movement for the area?!

Source: Bow to Bluff Corridor
bow-to-bluff-overview.jpeg
 

Cow-garian

New Member
Member Bio
Joined
Nov 24, 2021
Messages
3
Reaction score
4
The Sunnyside flood barrier plan is losing steam, now it’s a battle between flood protection and urban tree canopy. Could be down the ‘engagement’ rabbit hole for a few years.

JEMM pulled the DP on the Hive at the last minute at SDAB and it’s a bit of a mystery when they are going next.

But, we have meatballs and sweet sushi pocket thingies, so I agree, Kensington is on the up.
They must have pulled The Hive very recently? They presented to the Hillhurst Sunnyside Planning Committee last week on the 18th and they didn't mention anything. They were planning for movement in the early new year.

This is disappointing news....
 

UrbanWarrior

Senior Member
Member Bio
Joined
Mar 29, 2016
Messages
4,700
Reaction score
20,890
City:
Calgary
They pulled it and then resubmitted it like a few weeks later. It was very bizarre, but yes it’s still active.
 

MichaelS

Senior Member
Member Bio
Joined
Jul 6, 2016
Messages
1,747
Reaction score
9,334
Hive is still proceeding. There were some very, lets say, unique, antics that happened at SDAB that created a risk with the initial DP. The decision was made to pull that one, and resubmit, to resolve the unique situation, rather than risk the initial DP getting tied up in a legal proceeding for a very, very long time.

And while that sounds criptic, nothing untoward happened, but this was determined as the most expedient path forward for JEMM.
 

zagox

Active Member
Member Bio
Joined
Jul 5, 2018
Messages
308
Reaction score
1,013
City:
Calgary
Hive is still proceeding. There were some very, lets say, unique, antics that happened at SDAB that created a risk with the initial DP. The decision was made to pull that one, and resubmit, to resolve the unique situation, rather than risk the initial DP getting tied up in a legal proceeding for a very, very long time.

And while that sounds criptic, nothing untoward happened, but this was determined as the most expedient path forward for JEMM.

Presumably the wacky Stubicar family will be back again to appeal the new DP, can’t wait for the next chapter in the saga
 

Top