Article content continued
“We look at that and say ‘tenants are potentially downsizing by giving space back, what does that look like on a go-forward basis’,” he said. “I would suggest the market is going through a recalibration and a shift in how tenants use their space.”
Young said office spaces have already gone through a shift from the large executive offices to what he describes as low-intensity workspaces. He said his own office has changed to become open-concept with more public and collaborative areas for staff to work in.
“It’s a much more pleasant environment than the big old, stuffy offices,” Young said. “Unfortunately, the pandemic has shifted thought on that and I think the remote workforce has really caused some very interesting conversations around the boardroom table or Zoom meetings for how people actually will occupy on a go-forward basis.”
Meanwhile, Edmonton’s industrial market took more space in the third quarter, roughly 1.8 million square feet with availability dropping to 8.6 per cent. This is mainly due to the completion of Amazon’s distribution facility in Border Business Park near Leduc and Fountain Tire’s building in the Highlands Business Park.
Young said overall the industrial market is strong all across the country.
“Our industrial market…was fairly active in the quarter,” he said. “I would suggest that if you went to every major North America city, you would see the same thing. I think that’s a strong point for Edmonton. We’ve got a lot of large users in the market right now. We see a lot of large lease transactions occurring. So there is a bright spot in the real estate market.”
View original article here Source