Q3 Update Q3 Update ––

Calgary Calgary  Downtown OfficeDowntown Office

CBRE Limited CBRE Limited 

CB Richard Ellis | Page 2

DOWNTOWN CALGARY OFFICE MARKET..THE FACTS

Strong stable institutional ownership: primarily pension funds

Overall Vacancy – 7.0% (was 11.5% Jan 2011)

YTD absorption - 2.2 million SF!!!!!...that’s a record!!!

Class AA Vacancy – 2.9%

5,845,000 SF built 2009-2012 : ONLY 80,000 SF vacant

Who’s next?....Eighth Avenue Place?....Cadillac Fairview’s City Centre? …Palliser West?... Oxford Eau Claire?

CB Richard Ellis | Page 3

TENANT BUILDING SF

New Deals

Suncor Suncor East 120,000

SNC Lavalin 640 5th 100,000

Meyers Norris Penny LLP 640 5th 68,000

Canadian Forest Oil Ltd. 640 5th 34,000

Crew Energy Centennial 66,000

Talisman/ Sasol PennWest 63,000

Talisman First Canadian Centre 118,000

Imperial Oil BP Centre 75,000

Dover Energy Bow Valley Square 24,000

Husky Energy Western Canadian Place 37,000

IMV Projects 555 4 Avenue SW 34,000

Significant Renewals

SNC Lavalin 5th & 5th 115,000

Paramount, Stikeman, Blakes, Talisman Bankers Hall 800,000

AltaGas Calgary Place II 100,000

Encana Backfill

Apache TD Canada Trust 206,000

TD Bank TD Canada Trust 74,000

Schlumberger One Palliser 140,000

CNRL Bankers Hall East 180,000

Gowlings TD Canada Trust 72,000

Major Lease Transactions 2011

CB Richard Ellis | Page 4

ENCANA OFFICE FALLOUT - Then

One Palliser Square

Floors:

3 – 11

24 – 27Area: 

193,000 SF

Encana Place

Floors:

2 – 28Area:

420,000 SF

Bankers Hall East

Floors:

10 – 19Area:

198,000SF

Bankers Hall West

Floors:

7 – 9Area:

61,000 SF

TD Canada Trust 

Tower

Floors:

8 – 40Area:

533,000SF

First Canadian

Floors:

19, 20, 23Area:

38,000 SF

Dome Tower

Floor:

17Area:

14,000 SF

Scotia Centre

Floors:

35‐36Area:

28,000 SF

CB Richard Ellis | Page 5

ENCANA OFFICE FALLOUT – Now!!

One Palliser Square

Floors:

3 – 11

24 – 27Area: 

193,000 SF

Encana Place

Floors:

2 – 28Area:

420,000 SF

Bankers Hall East

Floors:

10 – 19Area:

198,000 SF

Bankers Hall West

Floors:

7 – 9Area:

61,000 SF

TD Canada Trust 

Tower

Floors:

8 – 40Area:

533,000 SF

First Canadian

Floors:

19, 20, 23Area:

38,000 SF

Dome Tower

Floor:

17Area:

14,000 SF

Scotia Centre

Floors:

35‐36Area:

28,000 SF

LEASED

LEASED

90% LEASED

LEASED

Talisman??

???

LEASED

CB Richard Ellis | Page 6

Inventory vs. Vacancy Rates

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

28,000

29,000

30,000

31,000

32,000

33,000

34,000

35,000

36,000

37,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 3Q 2011

Vaca

ncy R

ates

(%)

Inve

ntor

y (00

0's)

SF

Years

Historical Calgary Downtown O ffice Inventory vs. Vacancy Rates 2000 - 3Q 2011

Inventory Vacancy

2000 – 3Q 2011

CB Richard Ellis | Page 7

Absorption

-1,500-1,000

-5000

5001,0001,5002,0002,500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD 2011

Abso

rptio

n 00

0's S

F

Years

Calgary Downtown Office Absorption 2000 - YTD 2011

2000 – YTD 2011

CB Richard Ellis | Page 8

-200,000

0

200,000

400,000

600,000

800,000

1,000,000

Class AA Class A Class B Class C Class D

Abso

rptio

n (S

F)

Classes

YTD 2011 Downtown O ffice Absorption

Downtown YTD 2011 Absorption

CB Richard Ellis | Page 9

2012 – WHAT TO EXPECT

• Continued Confidence, Continued

Investment

• Demand to Remain Stable…velocity to slow

down

• Product Offerings Deteriorate

• Increased Focus on Renewal Leasing

• New Developments (8th Ave West, City

Centre, Eau Claire Tower, Bow South,

Centre 10)

CB Richard Ellis | Page 10

CB Richard Ellis | Page 11

•60,000 sq.ft. Oil and Gas company

•Renewal offer for 10 years.•$25 psf – years 1‐5•$32 psf – years 6‐10•$90 psf tenant improvement allowance

•Brokerage fee•Approx. NER of $13.71 psf

Fifth Avenue Place - Brookfield

CB Richard Ellis | Page 12

•20,000 sq.ft. Law firm•Renewal offer for 10 years.•$28 psf – years 1‐5•$32 psf – years 6‐10•$60 psf tenant improvement allowance

•Brokerage fee•Approx. NER of $19.84 psf

Barclay Centre

CB Richard Ellis | Page 13

•150,000 sq.ft. Oil and Gas company

•Offer for 10 years on upper floors.•$38 psf – years 1‐5•$45 psf – years 6‐10•$100 psf tenant improvement allowance

•Brokerage fee•Approx. NER of $22.56 psf

Eighth Avenue Place - West

CB Richard Ellis | Page 14

Brad, would you have done any of  these deals as a tenant?  If not, 

please comment.

Encana

Q3 Update Q3 Update ––

Calgary Calgary  Downtown OfficeDowntown Office

CBRE Limited CBRE Limited