Calgary's downtown Suncor Energy Centre office complex is set for $90-million in renovations and upgrades, including a performing arts centre and a food hall, to reposition the property into a mixed-use destination.

Brookfield Properties and ARCI announced Friday the massive redevelopment plan, which will also include a restaurant, landscaped terrace and mix of public and private amenities into a reimagined indoor-outdoor gathering space at the base of the centre’s two premier office towers.

The multi-year redevelopment will be delivered in phases and is slated for completion in 2027.

“Suncor Energy Centre is a very well-located and highly performing property, and the redevelopment will position it as one of downtown Calgary's most sought-after office locations for many years to come. The modernization will add a number of new, well-designed features including a performing arts venue, food hall and central indoor-outdoor gathering space,” said Damon Formos, executive vice-president and head of Western Canada for Brookfield Properties’ office business.

“Downtown Calgary, in particular the AA office market, is healthy with head-lease vacancy sub-10 per cent, availability of large contiguous options limited and rents increasing,”  

ARCI Ltd., is co-owner of the Suncor Energy Centre.  

Brookfield said it invests in its top properties to keep them apace with modern tenant needs. This redevelopment is not related to upcoming vacancies or other defensive posturing.

About Suncor Energy Centre

Suncor Energy Centre comprises almost 2.1-million square feet of space, with 1.7 million square feet of premier office space across two skyline-defining 32- and 52-storey towers. The Centre is LEED EM:OB Gold certified, BOMA 360 designated, and WELL Health-Safety rated.

Suncor Energy Centre is in the transit-rich downtown core and is connected to the city's Plus 15 above-ground indoor walkway system.

The property was constructed in 1984. Floorplates range from approximately 19,500 square feet to 22,400 square feet, and it offers a parking ratio of one per 2,400 square feet.

“Redevelopment projects like these underscore Calgary’s momentum as a city enhancing community vibrancy and downtown revitalization,” said Brad Parry, president and CEO, Calgary Economic Development and CEO, Opportunity Calgary Investment Fund, in a statement. “Brookfield Properties’ investment is more than an improvement to infrastructure. This investment boosts accessibility and fosters connections, positioning Calgary’s dynamic urban core as a magnet for businesses, professionals and visitors.”

Brookfield said in a news release the redevelopment aims to help revitalize downtown Calgary by offering new entertainment, dining and social spaces which will be programmed year-round for Calgarians and visitors. 

Elements of the redesigned centre

“Anchoring the project will be the amphitheatre and food hall, a brand new public gathering space, performing arts venue, and chef-driven food offering, which will be housed in the centre’s expansive glass atriums. Designed by KPMB Architects, Kasian Architecture and Interior Design, and Indigenous design-research firm Tawaw Architecture Collective, the 300 person-venue will feature a series of cascading seating areas nestled amidst vibrant, abundant greenery,” it said.

“Partnering with local Calgarian arts and culture non-profits, the state-of-the-art multi-purpose amphitheatre will host a robust programming calendar, including film screenings, live music, art exhibitions, dance, wellness programming, workshops, pop-up markets, lectures, and more curated by Brookfield Properties. The food hall will provide an additional 300 seats and be open throughout the day and evening.

"Extending from the food hall will be the terrace, a new outdoor lounge and rooftop dining patio perched above the streetscape. The food hall will feature a full-service bar ideal for after-work happy hours and socializing pre-and-post performances at the amphitheatre.”

Brookfield said it will also invest in a comprehensive amenities program for its office tenants at Suncor Energy Centre. The tenant-exclusive amenities will be centred on the third floor and include a hospitality-focused lounge, state-of-the-art fitness centre and conference facility.

Greg Kwong, executive VP and regional managing director of real estate firm CBRE, said the redevelopment has been planned for a couple years; it was part of the commitment by the landlord when Suncor renewed its lease.

“A lot of older generation 'A' buildings have had to renovate to keep up with office tenant demand, especially since the pandemic, as companies try to get their employees back to work in the office,” he said. “The renovations will look fantastic and certainly bring the building back to a double-A standard.”

Bringing employees back to offices

David Wallach, owner/broker of Barclay Street Real Estate, said downtown Calgary landlords have realized there are new rules to the occupancy game.

“Following COVID-19 instead of having one front – competing against other landlords to increase and maintain high occupancy - now they have two fronts to compete with," he said.

"The first one which they were familiar with is still other landlords. The second and new one is the kitchen table, or how do we get employees back to the office to increase and maintain high occupancy? The easy, however costly solution, is to bring more, new and modern amenities. The landlords that will make this adjustment will win. We already see some landlords that got ahead of the game win big.

“From a public view, as we try to get more residents living in the core, the more options they will have to enjoy restaurants, bars, late shopping and new amenities the easier it will be to convince people to live in the core, and make our downtown core a vibrant entertainment, happy and fun area to enjoy, not only from 8 a.m. to 5 p.m. but also after hours.”

Brookfield Properties is a leading global operator and developer of high-quality real estate assets. It is active in nearly all real estate sectors, including office, retail, multifamily, hospitality and logistics, operating more than 1,100 properties and over 390 million square feet of real estate in global markets on behalf of Brookfield Asset Management, one of the largest asset managers in the world.