BOMA Ottawa Commercial Space Directory 2015/2016 23 C lass C. BOMA defines it as “buildings competing for tenants requiring functional space at rents below the average for the area.” Why? It could be the amenities, the quality and freshness of the décor and other factors related to outdated design approaches, such as low ceiling heights and lack of natural lighting. Whatever the case, property owners of Class C buildings have two choices, stick with the status quo and pursue tenants in need of more economical leasing options, or remake the property to offer the market a more desirable product that can generate greater revenue. But how? Depending on the circumstances, the ideal course of action could be a renovation, a retrofit to repurpose the building for another use, or if need be, a complete demolition to make way for new construction. We spoke with two members of BOMA Ottawa, each of whom took a different approach to remake an existing Class C property, and what factors contributed to their choice of approach. 169 LISGAR 169 Lisgar in an 11-storey commercial property built in 1972. In 1984, it was expanded with an By Leo Valiquette Photography by Mark Holleron additional 5,000 square feet per floor. The building was split between 140,000 square feet of office space, an 80,000 square- foot parking garage and 10,000 square feet of retail. The federal government has traditionally occupied as much as a third of the office space. Last year, property manager District Realty decided to take 30,000 square feet of office space on the top five floors and convert it to 42 upscale apartments. Why? In response to a softer market for office space and a dramatic increase in the demand for quality residential space downtown, said Jason Shinder, Executive Vice-President and Principal of District. “It’s getting more and more difficult to rent office space,” he said. “We had the government give up some space. We had a language school that went out of business. It’s been difficult to rent the back of building where government has been the typical tenant … this particular space in the building lends itself better to residential than to office.” District decided to take a hybrid approach and repurpose part of the building. About 110,000 square feet will remain office space because it’s still seen as a solid and stable asset. The conversion of that 30,000 square feet required new windows, the addition of a second stairwell, the replacement of one elevator and the addition of a new one, and a new HVAC system. That’s of course in addition to all the construction and fit up of individual rental units with full baths and kitchens. “It will be an above average apartment for Ottawa,” Shinder said. “Each unit has five appliances, central air, and there’s a quality fitness facility on site.” With a little creativity and reinvestment, Shinder believes there are many downtown commercial properties that could be converted to mixed use in response to the market’s desire for more living Renovate or wrecking ball? Deciding when and how Class C properties can get a new lease on life “Revenue from a residential use isn’t much different than from a commercial use.” — JASON SHINDER
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BOMA Ottawa Commercial Space Directory 2015/2016 23
Class C.
BOMA defines it as “buildings competing
for tenants requiring functional space at rents
below the average for the area.”
Why? It could be the amenities, the quality and
freshness of the décor and other factors related to
outdated design approaches, such as low ceiling
heights and lack of natural lighting.
Whatever the case, property owners of Class C
buildings have two choices, stick with the status quo
and pursue tenants in need of more economical
leasing options, or remake the property to offer the
market a more desirable product that can generate
greater revenue.
But how? Depending on the circumstances,
the ideal course of action could be a renovation, a
retrofit to repurpose the building for another use, or
if need be, a complete demolition to make way for
new construction.
We spoke with two members of BOMA Ottawa,
each of whom took a different approach to remake
an existing Class C property, and what factors
contributed to their choice of approach.
169 LISGAR169 Lisgar in an 11-storey commercial property
built in 1972. In 1984, it was expanded with an
By Leo Valiquette Photography by Mark Holleron
additional 5,000
square feet per floor.
The building was
split between 140,000
square feet of office
space, an 80,000 square-
foot parking garage and
10,000 square feet of retail.
The federal government has
traditionally occupied as much as a
third of the office space.
Last year, property manager District Realty
decided to take 30,000 square feet of office space
on the top five floors and convert it to 42 upscale
apartments.
Why? In response to a softer market for office
space and a dramatic increase in the demand for
quality residential space downtown, said Jason
Shinder, Executive Vice-President and Principal of
District.
“It’s getting more and more difficult to rent
office space,” he said. “We had the government give
up some space. We had a language school that went
out of business. It’s been difficult to rent the back
of building where government has been the typical
tenant … this particular space in the building lends
itself better to residential than to office.”
District
decided
to take
a hybrid
approach
and repurpose
part of the
building. About
110,000 square feet
will remain office space
because it’s still seen as a
solid and stable asset.
The conversion of that 30,000 square feet
required new windows, the addition of a second
stairwell, the replacement of one elevator and the
addition of a new one, and a new HVAC system.
That’s of course in addition to all the construction
and fit up of individual rental units with full baths
and kitchens.
“It will be an above average apartment
for Ottawa,” Shinder said. “Each unit has five
appliances, central air, and there’s a quality fitness
facility on site.”
With a little creativity and reinvestment, Shinder
believes there are many downtown commercial
properties that could be converted to mixed use
in response to the market’s desire for more living
Renovate or wrecking ball?Deciding when and how Class C properties can get a new lease on life
“Revenue from a residential use isn’t
much different than from a commercial use.”
— JASON SHINDER
24 BOMA Ottawa Commercial Space Directory 2015/2016
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