Downtown : Everything’s waiting for you

The current and future evolution of downtown Edmonton

By Melanie Franner

Enbridge Centre, a $400 million 25-storey office tower, helped fuel growth in Edmonton’s downtown after opening in 2016.

Photo courtesy of Pangman Development Corporation .

No one can argue against the fact that the Edmonton skyline is changing, but so too is the vibe and feel of the city. Developers are working hand-in-hand with city planners to revitalize the downtown core – and momentum is building. A new sense of purpose and a new energy is fuelling a new wave of development that will continue to change this cityscape for many years to come.

This 30-storey LEED Silver apartment building is perfectly situated steps from the Grandin LRT station, close to the University of Alberta and the downtown core. The Hendrix is a 260-unit building featuring street-oriented townhomes in addition to studios, one bedroom, two bedroom, and three bedroom units with scenic views of downtown and the city’s celebrated River Valley. The J. T. Ross House was carefully preserved and incorporated into the new development, bringing a touch of history to its new life as a boutique office space.

Photo courtesy of Edgar Development .

Rendering of the the Parkview project, which will feature two residential towers on 108 Street and Jasper Avenue. The towers will be connected by a 13-storey podium and will be designed to have stores at street level. P

Photo courtesy of Pangman Development Corporation .

The lights are much brighter there “We’ve seen a lot more attention and excitement building in the downtown core over the last few years,” says Ian O’Donnell, executive director, Downtown Business Association. “With that, we’ve seen the rise of younger entrepreneurs.” O’Donnell attributes this growing demographic to a combination of Edmonton graduates opting to stay in the city to launch their own careers (e.g. new restaurants and pubs) and to a continuing influx of tech companies. “The average age of employees in the tech sector is lower than you’d find in the more typical corporate world,” he says. “This tends to skew to a younger demographic.” The construction industry has responded to this changing demographic, focusing on creating new buildings to meet the evolving needs of this generational shift. “The bar has been raised,” notes O’Donnell. “The design industry has really raised the bar in terms of what they have provided to their clients. We started to see it in workplace design, with the addition of different types of amenities, like break-out rooms and common areas.” O’Donnell cites the Edmonton Tower and the Enbridge Centre as two recent examples that exemplify this change in construction. “These two buildings raised the bar in Class AAA space across the board,” he says. “They spurred redevelopment and renovation.”

No finer place for sure Anand Pye, executive director, NAIOP, is the first to admit that the downtown has changed – both commercially and residentially.

“There’s been major investment in downtown office and residential projects, with several new towers completed in just the last few years,” he says. “That’s led to a lot of focus on industries which are growing fast enough to absorb all this new space.”

Pye credits Edmonton with having one of the youngest populations in the country – and one of the most educated. “Having this demographic has proven to be appealing to tech companies,” he says. “They are coming here – and staying here.” A perfect example of this can be found with DeepMind, which was acquired by Google in 2014. The artificial intelligence (AI) company opened its first satellite research lab outside of London, England, in Edmonton in 2017.

BioWare Video is another example. The company’s 300 employees moved into its new downtown location in September of this year, occupying 75,000 square feet of space in the Epcor Tower.

The surge in tech companies has definitely had an impact on the revitalization of the downtown core. Not only has it attracted a younger demographic, it has given way to an alternate lifestyle.

“The people gravitating to our developments downtown aren’t necessarily the ones with kids living in the suburbs,” says Peter Jonkman, vice-president, construction, Edgar Construction. “It’s the younger professionals who want the downtown lifestyle.”

Jonkman attributes the downtown evolution to a couple of factors, one of which is the City’s own focus on the area. Numbers from the City’s Edmonton Strategic Plan predict a population of 2.35 million by 2045. It also suggests the need for an additional 2.35 million square feet of office space and 2.35 million square feet of commercial space.

The plan definitely calls for increased densification and a revitalization of the downtown core, citing a “shift to a more urban centre”, which will aid in it “becoming a more livable city”.

“Our residents want to see more vibrancy, more nightlife, and a greater sense of community,” adds Jonkman. “They are looking for a more sustainable, more amenity-driven and more walkable/ car-share lifestyle.”

Edgar Development recently finished the Hendrix Tower, a 30-storey apartment building located near the Grandin LRT Station, which is close to the downtown core. The 260-unit building features townhomes, as well as studio, one-, twoand three-bedroom apartments.

The MacLaren is another recently completed project from the company. It rises 27 storeys and offers a collection of one- and two-bedroom rentals.

Edmonton’s growing tech sector will not only help make the City’s plan a reality, it will also create demand for more downtown housing.

The neon signs are pretty

A huge stimulus in the growth of the downtown core is the ICE District, a 25-acre, multi-use development that combines offices, condos, a public plaza, sports, entertainment, and shopping – all in one location.

At the heart of this mini metropolis is the Roger’s Arena, a $480-million facility with an 18,500 seating capacity. It opened in September 2016.

“The downtown core has changed dramatically since the arena opened,” says Ben Aitchison, senior project manager, One Properties. “It acted as a catalyst for the area, spurring the opening of a lot of bars and restaurants. You’ve probably seen three to four residential towers go up as a result, with many more being planned. The whole vibrancy of the downtown core has increased dramatically.”

An innovative reimagining of the historic Buena Vista Building on the corner of 124th Street and 102nd Avenue, The MacLaren will consist of a 27-storey tower atop commercial space within the existing iconic building. The MacLaren will preserve the character of this wellknown corner in Edmonton’s Oliver neighbourhood, while promoting a modern, urban lifestyle in this prime locale.

Photo courtesy of Edgar Development.

According to Aitchison, Phase 1 of the ICE District is largely complete. Two of the three buildings are now open, with the third starting within the next few months. “The good news on this front is that the leasing interest in the downtown core has been very successful,” he adds.

Aitchison cites the Stantec Tower as a prime example of this. The 66-storey building opened in 2016, with 1.3 million square feet of space. The aforementioned Edmonton Tower and Epcor Centre are other examples.

building in the Station Lands project, and held the esteemed position of being the tallest building in Edmonton until 2017. “The leasing success of these latest towers shows that there is a demand for high-quality, energy-efficient and live/work/play spaces,” says Aitchison. “Edmonton is becoming a very popular place for Canadians. It has a very young demographic, led largely by a high student population. This encourages us, as a developer, to build more and more residential buildings. Our research shows that there is a growing willingness to live downtown. This younger generation is not as concerned with owning property, so high-quality rental buildings are very popular. At this point in their lives, they

The former 29-storey building opened in 2016 with 40,000 square feet of retail space and 430,000 square feet of office space. The 28-storey Epcor Tower opened in 2011 with 625,000 square feet of office and retail space. It was the first

want to be entertained and enjoy life.” Mike Saunders, vice-president development, Qualico Commercial, also believes that the recent construction activity in the downtown core has attracted a lot of interest.

“ICE District has boosted the energy of the downtown, and people have taken notice,” he says. “There are a lot of Edmontonians who are starting to look for something different than the suburban experience of having to drive to get a cup of coffee, drive to the grocery store, drive to a restaurant. They want a more walkable environment and our downtown is starting to deliver.”

To that end, Qualico is in the process of revising its masterplan for Station Lands, originally designed to bring five new office towers to downtown.

“Station Lands is one of the last major growth nodes in downtown,” he explains. “We still have plans for five towers, but our vision is for much more than office space. Across the six remaining acres there will be a combination of boutique office space, mixed-use residential, and experiential retail. We see this as our opportunity to build an environment that’s going to have a much more positive effect on the long-term livability of the downtown.”

Station Lands is slated to be a multiuse development on a 9+ acre site on land once occupied by the Canadian National rail yard. Once completed, it will offer 2.5 million square feet of office, retail, hotel, and residential space.

Although there is little doubt that the ICE District has helped raise the allure of downtown, it’s not the only construction project to do so.

Kevin McKee, CEO of Pangman Development Corporation, is quick to point out a long list of significant projects that have also helped fuel growth in the downtown core. These include the addition of a new building at NorQuest

College; the consolidation of MacEwan University’s operations; MacEwan University’s construction of a $180 million Centre for Arts & Culture; Royal Alberta Museum’s move to the downtown core in a new $375 million facility; the expansion of the Francis Winspear Centre for Music; upgrades to Citadel Theatre; the opening of Enbridge Centre, a $400 million 25-storey office tower; and AIMCO’s recent purchase (and rebuilding) of the former HSBC Bank Place.

“On a macro level, the growth in the downtown core can be attributed to the strength of Alberta and [the] City of Edmonton’s economics,” says McKee. “The changes are also a bit of a reaction to the real estate market and to the design/construction community. As a result, employers are more willing to change the location of their office space.”

McKee admits that the construction of the Rogers Place has gone a long way to generating renewed interest in Edmonton’s downtown.

“But, at the same time, there has been a lot of ancillary development, not only

around Rogers Place in the ICE District, but additional investment in the area,” he says. “There is a significant amount of capital investment there. We’re talking billions of dollars in construction activity.” One of the new developments that Pangman Development currently has

underway is the construction of The Augustana, a 30-storey, mixed-use, highrise apartment building offering 240 residential apartment units that range from studio to three bedroom.

The company also has plans for two additional residential properties with a combined 1,800 apartment units, one of which will be located on property near the proposed City of Edmonton Park and the other on the former Edmonton Motors property.

One of the new developments that Pangman Development currently has underway is the construction of The Augustana, a 30-storey, mixed-use, high-rise apartment building offering 240 residential apartment units that range from studio to three bedroom.

Photo courtesy of Pangman Development Corporation .

Things will be great

This growing interest in the downtown is expected to continue well into the future. Various stakeholders – the City, developers, and residents – all have an investment in maintaining the momentum going forward.

“If the current development slated for the downtown continues, along with the few great projects in the works now, then the downtown will see a dramatic increase in density,” says Edgar Development’s Jonkman. “And with that will come additional services and retail. That will make for a more vibrant downtown core.”

Jonkman describes the City of Edmonton as currently being “great, but could be better”. He anticipates positive things for the future.

One of these “positives” may take the form of another emerging demographic to the downtown core: seniors.

“The current downtown demographic favours the 18- to 35-year-old crowd,” explains Downtown Business Association’s O’Donnell. “But the active senior population, those 55 to 70, are starting to leave their homes and move to the city centre. They’re interested in establishing a smaller residence so they can travel or they want accessibility to amenities.”

One Properties has also recently broken ground on two new towers. At 12010 Jasper Ave., CNIB is a 33-storey residential rental building, while Clifton Place (124th St. and 102nd Ave.) is a senior living complex located on the west side of downtown.

Aitchison anticipates that both residential towers will be completed within the next two years.

“We’re trying to develop product that meets a range of needs,” he explains. “We’re finding that where you have a lot of success is with projects that incorporate a lot of amenity spaces, like patios, gyms, hot tubs, golf simulators and eating areas, etc. People want their own living space but, at the end of the day, they thrive on social activity.”

Qualico’s Saunders also envisions more activity within the senior population.

“As our city ages, seniors are looking for living arrangements that allow them to be active members of their communities, while also giving them the autonomy to access retail, amenities, and other services that are nearby. Downtown is ideal for this,” he says, “and we’d like to help provide these types of opportunities.”

Yet another potential change coming to the downtown may be renovation and demolition.

“The biggest change that we haven’t yet seen will be the significant amount of Class C office buildings that will be re-developed into alternate uses, like hotels, rental, apartments, and condos,” suggests Pangman Development’s McKee. “I suspect that some of the poorer office buildings will actually be demolished at some point.”

For NAIOP’s Pye, the future of the downtown core is one that continues to thrive on change.

“We have to keep the momentum growing with some of the broader building initiatives over the next few years, like making a great downtown Central Park and the continuation of the LRT,” he concludes. “These will be major amenities for downtown. And I think, in turn, that these amenities will attract more people to come to, and stay in, the downtown core.”

All this – and more – may lay in the future of the city’s downtown core. As to the actual degree to which it may occur, or when such things may happen – only time will tell. But regardless of how much or when, there is no doubt that downtown Edmonton will continue to thrive. u