Inside Edge Properties has spent $15.3 million to buy a suburban office property near the Ottawa International Airport that was sold by Montreal-based Pro Real Estate Investment Trust, marking a bet on more demand for a region and workspaces in coming years.
The Class A office building at 2 Gurdwara Road was built in 1990 and contains six floors of 17,745 square feet each. The property has a current municipal evaluation of $12,182,000, resulting in a $387,500 property tax bill for the current year.
The new acquisition adds to Inside Edge’s current crop of workplaces outside the city, and the company expressed faith in the category in an email exchange with CoStar News.
"Historically, this part of Ottawa has seen lower-than-average vacancy rates compared to other areas of the city, particularly in recent years," said Jordan Bianconi, vice president of acquisitions and corporate development.
Bianconi added that the building is in an area that will have more office demand in coming years.
"This low vacancy rate reflects strong demand and stability within the South node and highlights its superior performance compared to other parts of the city," Bianconi added. "As more office buildings become converted to multifamily throughout the city, we believe that there will be more pressure on office vacancy rates in Ottawa. The South node caters to some of Ottawa’s most thriving communities such as RiverSide South, Barrhaven and Manotick allowing for a well-suited option at 2 Gurdwara."
'Frustrated' with commute
The Inside Edge decision makers are banking on the appeal offered by suburban office locations.
"I don’t think it's accurate to say that office workers dislike the office itself; rather, they’re more frustrated with the commute," said Bianconi. "That’s why we believe the demand for suburban office spaces will remain strong, and we’re positioning ourselves to be a part of this growing trend beyond our current holdings."
Tenants in the building include Knak and Campaigner, companies that occupy about one floor each. Other leaseholders include IG Wealth Management, IP Private Wealth, Capital Cardiology, NORTAC Defence and the Doli Law Firm, according to CoStar research.
Vendor Pro Real Estate Investment Trust, or PROREIT, owned the property for almost five years after purchasing it from Winnipeg-based IGM Financial in 2018 in a five-property deal.
Inside Edge Properties is based in Ottawa and led by President David Hunter, and Vice Presidents Taylor Hunter and Bianconi. The company has a real estate portfolio of over 700,000 square feet under management in more than 20 properties, according to its website.