The Transformation of Downtown The Transformation of Downtown Ottawa - - PowerPoint PPT Presentation

The Transformation of Downtown Ottawa

Ottawa Real Estate Forum 2018

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Ottawa Real Estate Forum 2018

The Transformation of Downtown Ottawa

Ottawa Real Estate Forum 2018

What is the impact of urban tech tenants and coworking companies? How is the presence of the federal government changing? What is the potential impact

• f the LRT on emerging

trends? Where are the new development opportunities in the central area?

Who’s Moving in and Who’s Moving Out?

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Ottawa CBD Office Market Overview

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Class A 58% Class B 33% Class C 9%

Central Ottawa Inventory

Class A Class B Class C

Building Class Inventory (million sf) Q3 2018 Vacancy Class A 10.8 4.6% Class B 6.1 11.2% Class C 1.7 14.7% Overall: 18.6 7.1%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 2014 2015 2016 2017 Q3 2018

Historical Average = 8.6% Vacancy (all classes)

Urban Tech Growth in the CBD

How much growth has there been in urban tech related tenancies?

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Ottawa is recognized as one of the top cities in North America for technology sector growth

• Early 2000s - 6,000 sf at 61 York Street
• 2012: expanded and moved to 10,000 sf 126 York Street
• 2016: moved into 130,000 sf at 150 Elgin Street
• 2017: committed to additional 325,000 sf at 234 Laurier Avenue
• 2022: will occupy all of 234 Laurier Avenue
• Occupied - 6,000 sf at 176 Gloucester Street
• 2017: moved into 17,000 sf in World Exchange Plaza
• Occupied - 10,000 sf at 12 York Street
• 2018: moved into 47,000 sf at 200 Laurier Avenue

• Currently in small pockets of space

across the city. Over 15 shared

• ffice locations in the CBD.
• Regus and TCC are among the

biggest “traditional” shared office

• ccupiers.
• Collaborative business communities

are emerging like Collab Space, One Eleven, and Impact Hub which

• ffers its members services like

mentorship, networking events and access to investors and promotional support.

Coworking Space on the Rise

How is coworking changing the makeup of office tendencies and affecting

• ffice occupancy?

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Changing workplace demographics

 Millennials value the “live, work, play ” lifestyle that is associated with working in the downtown core.  A generation that has high workplace standards which are correlated to talent retention. Far less correlated in the public sector.  Emphasize the importance of an open and collaborative office space.  Growing popularity in telecommuting providing work-life balance flexibility.

The Federal government is revamping office spaces with Activity Based Workplace (ABW) and Workplace 2.0

• Strong virtual environment
• Based on flexibility, efficiency, health, collaboration and digital capacity
• Workplace 2.0 – currently 3% converted with target to achieve 25% or 8 million

square feet by 2025 How do millennials needs differ to traditional public sector tenants?

7 Cushman & Wakefield | Client name

Department of Defence Moving to the Suburbs

To what extent is the government presence in the core declining?

2014 2017 2017 2018 2018 90 Elgin

• 489,000 sf

222 Nepean

• 111,000 sf

160 Elgin

• 60,000 sf

219 Laurier

• 38,000 sf

400 Cooper

• 55,000 sf

Recent EOIs/RFIs in the Central Area

New DND Campus in the West End

• Three phase plan to consolidate 50 facilities to approximately 7
• Old Nortel campus revamped for new DND HQ- completion by mid-2020

Over 40% of

• verall office

inventory Over 50% of CBD office inventory The government is still the largest

• ccupier of space

• Transit-oriented suburbs may become more attractive once the LRT is
• perational
• Many new developments have been approved over the set building height limits

Light Rail Transit in 2019

What will the potential impact of LRT have on emerging trends?

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• Trinity Centre at 900 Albert will

be up to 65 stories high.

• Located at Bayview Station

connecting the Trillium Line with the new Confederation LRT line.

• Up to 18,000 passengers an

hour travelling through the station during peak hours.

• New events centre with 18,000-

seat capacity, public square and

• ther features that promotes

intensification of the core.

Central Proposed Developments

Where is the demand supporting the viability of these projects?

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Address Landlord/Developer Potential Square Footage 170 Slater Street GWL Realty Advisors 386,000 sf 300 Queen Street Brookfield 577,000 sf 150 Bank Street Morguard 435,000 sf 6 Booth Street Zibi 80,000 sf by 2019 plus 200,000 sf by 2020 900 Albert Street Trinity 300,000 sf LeBreton Flats RendezVous LeBreton Group 2,800,000 (combined office & retail) 80 Metcalfe Street Metcalfe Realty 157,000 sf Total: 2.14 million sf (excl. LeBreton)