Hungerford Properties plans to redevelop a 109,326- square-foot industrial building in northeast Calgary. Originally built in 1966 by the Alberta Liquor Control Board and formerly home to Southern Alberta Institute of Technology, the building has been sitting empty for the last two years.
“It’s a solid, well-constructed building that will be now getting a major facelift, offering industrial space at attractive rental rates,” said partner Michael Hungerford.
The makeover will compete in a tough leasing environment. Calgary’s overall industrial vacancy rate is now in the 7.5 per cent range, a record high, and total industrial absorption in the first half of this year was negative by more than 200,000 square feet.
The northeast has the highest vacancy rate, at 8.9 per cent, according to Barclay Street Real Estate. Barclay noted, however, that the distribution and warehouse sector held the greatest promise in Calgary’s industrial sector.
Hungerford plans to return the building to its original use as a distribution building. The property also features 1.9 acres of excess land, some of which will be developed at a later date.
Hungerford Properties has a history of successfully refurbishing industrial developments. In 2013, it purchased the old Haworth building in south Calgary, turning it into what is now known as the Icon Business Park.