[yeggator]

Can anyone help me understand how Calgary got multiple huge towers started the last few years and yet their rents are declining and not much higher than ours currently, yet we can’t get anything beyond stick frame cheapos?

After COVID, they were victims of the same real estate speculation that plagued the Toronto condo market, whereas we weren’t. I remember driving past a new condo by Canada Olympic Park a couple weeks ago and remarked at how empty it appeared based on most of the balconies having been untouched.

 

[northlands]

Can anyone help me understand how Calgary got multiple huge towers started the last few years and yet their rents are declining and not much higher than ours currently, yet we can’t get anything beyond stick frame cheapos?

We need Truman up here.

When a lot of their currently under construction highrise projects were being penciled over the past 2-3 years, average rent in Calgary was approx. 25% higher than Edmonton. That's a pretty substantial amount difference considering fairly equal construction costs.

Even today their average rent is still a solid 15%+ higher than Edmonton.

 

[David A]

Yes, rent is still higher there and increased earlier while the condo and high rise building boom was still on. Here rent started to increase right around the time that was ending.

 

[strata]

Can anyone help me understand how Calgary got multiple huge towers started the last few years and yet their rents are declining and not much higher than ours currently, yet we can’t get anything beyond stick frame cheapos?

We need Truman up here.

Wasn't it only a couple years ago the big rally cry was 'The Missing Middle' and now that we have a bunch of 4-6 story projects...we are upset by only getting stick frame construction?

If you want better architectural design, sure, no argument here...but when the market size is limited, you can't have unlimited high-rise projects.

 

[Agard]

It could be the case that people have been complaining either way, but often when that appears to be happening it's two entirely different groups of people who are only vocally complaining when they aren't getting their way, giving the impression that the "general public" won't make up their minds and keeps flip-flopping

 

[IanO]

When a lot of their currently under construction highrise projects were being penciled over the past 2-3 years, average rent in Calgary was approx. 25% higher than Edmonton. That's a pretty substantial amount difference considering fairly equal construction costs.

Even today their average rent is still a solid 15%+ higher than Edmonton.

Bingo.

 

[inclusion]

When a lot of their currently under construction highrise projects were being penciled over the past 2-3 years, average rent in Calgary was approx. 25% higher than Edmonton. That's a pretty substantial amount difference considering fairly equal construction costs.

Even today their average rent is still a solid 15%+ higher than Edmonton.

Wasn’t it like that before too though? Edmonton has lagged Calgary for quite some time.

 

[Offworld]

Wasn’t it like that before too though? Edmonton has lagged Calgary for quite some time.

Since the mid-70s, actually.

 

[thommyjo]

After COVID, they were victims of the same real estate speculation that plagued the Toronto condo market, whereas we weren’t. I remember driving past a new condo by Canada Olympic Park a couple weeks ago and remarked at how empty it appeared based on most of the balconies having been untouched.

Is the 15-20% higher rental rates all that’s needed for the boom? @IanO if our average rents jump $300, this tower, ice towers, etc are going sky high again?

 

[archited]

^ I doubt that. The biggest market for concrete in Edmonton presently is the LRT Valley Line West and related construction. Once that begins to subside then the builder-excuse will fade with it as the price begins to fall. The "problem" currently is that there is high demand for apartment occupancies and like many of the past Edmonton booms, there is a rush to build as cheap as possible to collect them valuable dollars. If there was a real concern for quality, developers would at least be trying to build something aesthetically sustainable instead of going for the mass ugly. "Quick Buck Syndrome" and a race to the bottom are simply coinciding one with the other.

 

[NicolBolas]

^ I doubt that. The biggest market for concrete in Edmonton presently is the LRT Valley Line West and related construction. Once that begins to subside then the builder-excuse will fade with it as the price begins to fall. The "problem" currently is that there is high demand for apartment occupancies and like many of the past Edmonton booms, there is a rush to build as cheap as possible to collect them valuable dollars. If there was a real concern for quality, developers would at least be trying to build something aesthetically sustainable instead of going for the mass ugly. "Quick Buck Syndrome" and a race to the bottom are simply coinciding one with the other.

Edmonton is the embodiment of (I'm an engineer not a architect) value engineering... From buildings to infrastructure.

 

[archited]

^ In some circles -- yes! I agree with you. 'Tis one of the failings of a fast growing City with an industrial base. We must keep prodding those who can make a difference to do better (even if they are pissed off at me for doing so -- I can take it). It seems that the Civic side and the Educational realm are doing fine and are leading the way to better and more exciting solutions architecturally speaking. There are also a handful of developers who are propping up the mixed-use/residential side -- thank heavens for them!