Brookfield Office Properties says it will soon begin construction of Calgary’s tallest office tower, a 56-storey high-rise that will anchor a block-big, 2.8 million-square-foot downtown development.
At 247 metres, Brookfield Place will represent the highest office building in Western Canada. It is to be complete in 2017, with construction to begin this September. The tower will stand taller than Calgary's The Bow, which is 236 metres high.
Cenovus Energy Inc. a leading Canadian oil company, has agreed to lease one million square feet in the first tower. A second 42-storey tower is proposed for the northwest corner of the site, with a three-storey, 50,000-square-foot transparent glass pavilion connecting the buildings for a pedestrian skywalk.
"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."
"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."
Calgary has a downtown office vacancy rate of 5 per cent, which is considered healthy.
In addition to Cenovus Energy's lease commitment, there are many large tenants in the market with leases expiring 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, Brookfield estimates.
The development will be constructed to a high standard of sustainability and is expected to achieve the LEED Gold standard
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 per cent leased with an average lease term of 11.2 years.
