By Paul Brent
Owners of class B office buildings in major markets such as Toronto and Vancouver are facing an epic challenge. Millions of square feet of AAA class office space now under construction is pushing older commercial properties down a notch, or two in terms of desirability.
So what’s a B landlord to do besides sell?
Colliers International outlines three different strategies for B owners, which it describes as specialization, capital injection and repurpose with illustrative case studies for each.
“Those are the three that we found when we were doing our research that are proven to be the most popular and realistic for a landlord to consider,” said Curtis Scott, a market intelligence analyst with Colliers in Vancouver.
Colliers classifies A and AAA buildings are those located within a city’s central business district, with proximity to mass transit, amenities like ground floor retail and community space. B and C class office, on the other hand, is characterized by its less strategic locations, limited transit and amenities and less attractive office space.
Specialization An Option
One emerging strategy for landlords with less desirable office space would be to specialize in a specific tenant type or industry. An example Colliers raises is that of a landlord who
Source: RENX
Taken June 20th.
