Canadian real estate company Dream Unlimited Corp., in cooperation with Dream Hard Asset Alternatives Trust, has announced a 15-year lease agreement with the federal government.
The deal involved approximately 158,000 square feet of office space within the first Class A building at the 34-acre Zibi development in Ottawa, “adjacent to the Chaudière Falls with unparalleled views to Parliament Hill.”
The 8-storey building where the federal government will be moving in is scheduled for completion by late 2020, and operations will begin on 2021.
“Located mere minutes from the Central Business district and fronting onto Booth Street, the building will be connected by kilometres of dedicated National Capital Commission (‘NCC’) bike trails and pedestrian walkways, and will provide for unmitigated waterfront access to the Ottawa River, newly created parks and will be adjacent to national museums in both Ottawa and Gatineau.”
The federal government was the first to have cemented a significant commercial lease commitment at Zibi, the announcement stated.
Aside from the building, more than 450,000 square feet of space dedicated for retail and commercial use is currently being drafted or developed in the area. Zibi is planned to ultimately offer more than 4 million square feet of residential and mixed-use assets.
Over the past few years, Ottawa has become an increasingly popular choice among property buyers and investors alike.
Much of the dynamism could be attributed to the boost that the city’s real estate market is receiving from the local government and economy, according to a recent Engel & Völkers analysis.
A vibrant economy stimulated by 8.8% population growth – which is considerably higher than the overall national rate of 5.9% – continues to feed into Ottawa’s commercial assets, especially the multi-family segment.
“With the market absorbing condos at a faster rate, coupled with the market’s population growth, there is a high probability of the local government approving more condo projects in the near future,” Engel & Völkers explained.