Jul 25 2013
Brookfield Office Properties Inc. today announced that it will commence construction of a 2.4-million-square-foot office development project in downtown Calgary to be named ‘Brookfield Place Calgary.’ Cenovus Energy Inc., a leading Canadian oil company, has agreed to lease one million square feet of the 1.4-million-square-foot east tower, which upon completion will be the tallest structure in western Canada at 56 storeys or 247 metres in height.
Brookfield Place Calgary, previously known as ‘225 Sixth’ and the former site of the Calgary Herald building, is a full-block development site in the heart of downtown, bounded 1st and 2nd Streets SW and 6th and 7th Avenues SW.
“I am very pleased to welcome this new and stunning addition to the dynamic Calgary skyline,” said Calgary Mayor Naheed Nenshi. “Brookfield and Cenovus are demonstrating their confidence in Calgary as an economic hub.”
Construction of the east tower is scheduled to commence in September 2013 with completion expected in the latter half of 2017. It is expected that Cenovus will occupy its one million square feet by Q1 2018.
“Brookfield is thrilled to commence construction of Brookfield Place Calgary in the best-located parcel of undeveloped land in the city,” said Jan Sucharda, president and chief executive officer of Brookfield Office Properties’ Canadian Commercial Operations. “Cenovus Energy’s long-term commitment to this development is an overwhelming positive for the Calgary office market and Brookfield specifically as we expand our relationship with this important player in the North American energy sector.”
“Taking space in this world-class building, owned by a premier developer and property manager, marks a significant and exciting step in the consolidation of our Calgary staff in fewer buildings,” said Denise Froese, Cenovus Vice-President, Administrative Services. “This will enhance staff collaboration and help us maintain a healthy organization as we continue to build the company.”
The Calgary office market continues to thrive, with a market vacancy of approximately 5%. In addition to Cenovus Energy’s lease commitment, there are many large tenants in the market with expiries between 2015-2020 which would coincide with Brookfield Place Calgary’s delivery date of 2017.
The entire project is expected to create 1,300 construction jobs and 7.5 million construction man-hours in Calgary.
In addition to the east tower, development plans call for an additional office tower totaling approximately one million square feet, a 60-foot-high transparent glass pavilion, restaurants, retail shops and amenities at street level, and underground parking accommodating 1,100 parking stalls. A half-acre lit public plaza will traverse the site and will feature restaurants and cafés, public art displays, cultural activities and programmed activity provided by Brookfield’s award-winning Arts & Events program.
The development will be constructed to a high standard of sustainability and is expected to achieve the LEED Gold standard for Core & Shell development. Commuters will have direct access to the plus-15 skywalk system and the Calgary LRT on 7th Ave. The property will house an innovative bicycle parking facility accessible by dedicated bike ramps separate from vehicular traffic and electric car plug-in recharge stations.
Over the past several years, Brookfield has embarked on a branding campaign to create ‘Brookfield Places’ around the globe to represent the highest quality in urban real estate. Brookfield has branded similar projects in other cities of the world as ‘Brookfield Place,’ including Toronto, New York City and Perth, as those properties also represent best-in-class districts for office space, dining, retail and the arts.
Brookfield is among Calgary’s largest office landlords with a portfolio of 8 properties totaling 6.8 million square feet. Landmark assets include the Bankers Hall and Suncor Energy Centre complexes. Brookfield’s Calgary portfolio is 99.7% leased with an average lease term of 11.2 years.