Sep
26

Sports Katz

Economic Improvement Necessary To Success Of Edmonton’s Proposed Sports Arena

A full economic recovery will be essential to the success of the development proposed as part of Edmonton’s new sports arena, according to experts in the hotel and real estate industries. Office towers, hotels, restaurants, a casino and a pedestrian bridge are elements of a large complex that the Katz Group wants to build.

John Frederickson, a managing director with Colliers International, advised that there needs to be a demand for new real estate, and suggests that Katz pre-lease space before construction begins. Edmonton currently has a 7.3 percent rate of office vacancies.

Avison Young principal Cory Wosnack commented that brand-new office towers would not help to establish new business, but they might attract existing companies. The commercial real estate executive said that Edmonton is not in a position to fill new office buildings, but that situation could change in the next five years. Wosnack said that the stability of the Edmonton market is key for a faster economic recovery.

NAI Commercial Real Estate is located in the circa-1966 CN Tower, which is near where the proposed office towers would be built. NAI’s owner, Frank Gibson, said that new building development might attract commerce to the area. He hoped that the timing of the structures’ completion would coincide with a higher demand for space and services.

Dave Kaiser, CEO and President of the Alberta Hotel and Lodging Association, noted that Edmonton’s downtown hotels experienced vacancy rates of approximately 60 percent last year, and that it would be difficult for new hotels to be successful unless a significant attraction were to draw traffic to the area. Kaiser said that an arena in the downtown area would be an asset.

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