SHIFTING COMMERCIAL DISTRICTS CREATE OPPORTUNITIES // COMMERICAL REAL ESTATE
IN OTHER WORDS, THE COLISEUM, BUILT IN 1974, IS LOSING ITS TWO BIGGEST DRAWS—THE OILERS AND FUNCTIONALITY AS AN ENTERTAINMENT VENUE. HOWEVER, WHILE THIS DEVELOPMENT IS CREATING CONCERN FOR THOSE EMPLOYED BY REXALL PLACE, IT IS ALSO CREATING AN OPPORTUNITY FOR THE COLISEUM TO ADAPT TO THE NEEDS THAT ARE BEING EXPRESSED BY ITS COMMUNITY.
The office block isn’t the only area that is getting hit by the sudden draw of downtown’s ICE District. With the construction of Rogers Place and the relocation of the Edmonton Oilers, Rexall Place is losing its main tenant.
“There is a current need in Edmonton for more arenas in which kids can play sports like hockey,” Filevich says. “The plans to repurpose Rexall Place are well used in this focus. It’s not about money, it’s about doing what’s right for the community.”
As Trish Filevich, public relations manager for Northlands says, “Something will need to happen with Rexall Place. When the Oilers exit, the concerts that used to be held at Rexall Place will not be able to happen there anymore.”
This shift in focus is something that is being noticed by tenants as well. As Hanafi explains, “What we are noticing right now is that commercial real estate landlords are trying to incentivize tenants, either through rent reductions, or by offering more competitive tenant improvement allowances.
In other words, the coliseum, built in 1974, is losing its two biggest draws—the Oilers and functionality as an entertainment venue. However, while this development is creating concern for those employed by Rexall Place, it is also creating an opportunity for the coliseum to adapt to the needs that are being expressed by its community. In a press release given by Northlands’ CEO Tim Reid on February 17, 2016, Northlands unveiled its plans (Vision 2020) to repurpose their existing facilities; plans which include the renovation of Rexall Place into the Northlands Ice Coliseum, an athletic complex that will feature two levels of ice and can be converted to accommodate alternative indoor sports. Vision 2020 also includes plans for the repurposing of Northlands Park Racetrack & Casino into a multi-use urban festival site that has the capacity to host up to 140,000 people, as well as plans for the renovation of Hall D into a 5,000 seat venue for events like minor hockey tournaments and championship games, rodeos, and professional lacrosse.
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APRIL 2016 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM
“I do think there is a positive outlook for landlords, tenants, and brokers. This isn’t an ideal economy, and some landlords are getting less rent than they would ideally like to, but vacant spaces still accumulate operating costs. A tenant, even one who is paying less rent, is still contributing, and this is a good thing. “Also, tough times often create investment opportunities, and we will be seeing investors and their firms (many coming with foreign capital) acquiring depreciating buildings in Edmonton to give them a much needed facelift in an attempt to reposition these assets.” The current construction of ICE District also poses a further advantage for tenants. Hanafi explains, “The resulting surge in office vacancy means that landlords do not want to wait too long to fill those vacancies, for fear of things worsening.” This means tenants have more options at more accessible rates in areas that could be very advantageous for their businesses.