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MARG SEBZDA
When supply exceeds demand, office lease rates tend to plunge In the next few years, we’ll see some great leasing opportunities, predicts Marg Sebzda, a senior associate with Canada ICI Capital Corporation.
“T
are how to get this product to the market in a timely fashion he Edmonton market will continue to be and how to fast track the funding for the projects through the strong in all sectors, but there will be chalgovernment. There needs to be some forward thinking in this lenges with all the developments going on area; maybe it should be spearheaded downtown and in the arena district. by the private sector.” There are several new developers that “Challenges we face are how to Sebzda, also the 2014 president of have jumped on the bandwagon to get this product to the market the Edmonton chapter of the build high rise residential condos, Commercial Real Estate Women while we still have some newer in a timely fashion and how to fast (CREW) Association, is focused on product out there that hasn’t been track the funding for the projects developing mentorship programs for sold” says Sebzda. Local developers young women considering this career who own high rise sites in the downthrough the government. path. CREW however is not only for town area, are either just sitting on There needs to be some forward women, we have several male members the land or contemplating the sale.” as well, who together form a strong At the same time, the rising thinking in this area.” network of reliable sources of informaneed for seniors’ housing continues Marg Sebzda, Canada ICI Capital Corporation tion. With the CREW Network, there is to go grow. collaborative networking with women “In the hospitals you’ll see beds and men and quality responsiveness to work across all specialbeing occupied by seniors who don’t need to be there. They ties in commercial real estate. are occupying a bed in the hospital because there’s no room Barbara Balfour for them in the medium care facilities. Challenges we face
RANDY FERGUSON
Getting Edmonton’s office market up to par
“W New additions to the downtown core are just another opportunity for Edmonton landlords to seize the day, says Randy Ferguson, chief operating officer at Strategic Group. 54
ally opt for higher quality, LEED-certified buildings. e need to view it as an “As space and vacancy appears in A class prodincentive to improve our ucts, tenants in B and C product will move to a office and rental environhigher class if they get a discount, because it gives ment, get new product on the ground and their companies higher prestige,” he says. leverage it as a business attraction tool. When a While most buildings in Edmonton are showing firm flies in from China or France to look for office their age, landlords have space in Edmonton, we don’t “When a firm flies in from been discouraged from reinwant them to say, ‘Our choices are too limited and China or France to look vesting in them. Since the bulk of tenants are governyou can’t service us here’,” for office space in ment offices, rents have had says Ferguson. “We still have too many Edmonton, we don’t want to stay economical. But for landlords to buildings that have reached them to say, ‘Our choices compete in a market into their functional obsolescence, where the land are too limited and you which new supply is introduced, they’ve got to reinshould be repurposed for can’t service us here’.” vest in their product. something new, like another "Edmonton is one of the asset class.” Randy Ferguson, Strategic Group top five markets in the Existing landlords will country," says Ferguson. "We need to start looking carry the advantage of price as developers are like it." limited in how much they can reduce rents to attract new tenants. However, tenants will eventu- Barbara Balfour
Canadian Real Estate Forum / SPRING 2014
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