Analysts say the problem with high office vacancy rates isn’t going away anytime soon, but one company is attempting to turn things around by converting some of their vacant buildings into residential units.

Strategic Group, the organization that owns the Cube and the Barron Building in Calgary, is looking at the problem as a new opportunity to try and turn things around for the city.

It’s taking those two buildings off the vacant office list and turning them into apartments; 65 middle-range units in the Cube and 94 high-end spaces in the Barron.

The company says the idea makes good business sense.

“Conversions are good for three reasons; one for the economy, one for business and one for the community. For the economy, we’re bringing people down to occupy underutilized office spaces. For the community, we’re bringing people downtown. We need vibrancy downtown to do that. For business, it makes sense for us to take our underused office buildings and convert them into really nice rental apartments,” says Ken Toews, vice-president of development.

Toews says the idea will also help with vibrancy in downtown Calgary, something that it lacks compared to other centres like Toronto, Vancouver and Seattle.

“We’re real believers the downtown and what we really need to do downtown is we need to get more people here. That helps get people downtown and creates that vibrancy that helps those other centres attract those high-tech companies.”

Todd Throndson, managing director for Avison Young, says Calgary’s office vacancy rate will grow in 2019 when Telus Sky opens later this year. Currently, it sits at 24.7 percent.

He says landlords have a challenge ahead of them when they are trying to rent out space.

Keep reading in the Calgary Herald

 

Watch the video and learn more about the benefits of joining Construction Links Network – the peer-to-peer network sharing platform for the construction, building and design community.

Ideal for YOUR Press Releases | Project Updates | New Appointments | Awards & Milestones | Company News | New Products/Services | Brochures | Videos | Infographics | Blog Sharing | Events and More