An office tower in downtown Calgary is getting a face lift in order to attract tenants – and energy savings are a key element in reversing its fortunes. The 11-story 121,000 square foot building is owned by 300 shareholders in a limited partnership, according to The Calgary Herald.
The structure, which is the former NC Lavalin building at 5th Avenue and 8th Street S.W., is to be upgraded from Class B to Class A. The goal is to succeed in a city in which the downtown vacancy rate grew from 6.1 percent to 11.4 percent between the second quarters of 2014 and 2015.
The redevelopment work is to be completed by the end of September. Building management said that an ace in the hole is that the energy efficiency of the building is 25 to 30 percent greater than other buildings in its class, which leads to a savings of about $5 per foot in operating costs. The redevelopment project could increase the operational savings to $8 per foot.
The savings in operational costs cited by the retail executives are in line with Environmental Protection Agency estimates, which are that recommissioning buildings can lead to cost reductions of 8 percent to 20 percent.