Vacancies in the downtown have had an effect on the value of office towers.
At first blush the numbers seem shocking, however Coun. Scott McKeen said we shouldn’t be surprised at what’s gone on. Four towers sold for a combined $163 million less than what they went for six and seven years ago.
“I don’t think it’s a bad news story,” McKeen said. “I think in fact that happens all of the time in business. Businesses have sort of tapped out the infrastructure they’re in, they sell it at a lower rate. Somebody comes in and because they got it at a lower rate they can invest some money in to bring it up to modern spec.”
Two of the buildings, the HSBC Bank Place on 101 Street, and Enbridge Place, with its iconic triangle roof at Jasper ave and 103 street, were purchased by AIMco, the arm’s length provincial agency that invests billions on behalf of the Government of Alberta.
Vacancy has hit hard in those instances with the newly named Enbridge Tower on the Kelly Ramsey site, and the City of Edmonton’s new tower in the ICE District taking over.