10-storey tower still empty
Bellanca building enters third year of vacancy downtown; residential development not out of the question
Mark Rieder
Northern News Services
Thursday, July 9, 2015
SOMBA K'E/YELLOWKNIFE
After three years empty, the future of downtown's Bellanca building is unknown, but neither the city nor the owners are ready to give up.
The 10-storey Bellanca building has been empty for three years and there are few indications that will change soon. A spokesperson for the company that owns the building told Yellowknifer the company needs a major tenant before it can start to parcel out smaller sections. - Mark Rieder/NNSL photo
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The 10-storey building on 50 Street downtown housed the Department of Aboriginal Affairs and Northern Development Canada until it moved into the Gallery building in 2012.
Darin Benoit, spokesperson for Dream Office REIT which owns 176 properties country-wide, attributes the vacancy to the market.
"Right now the market is fairly flat and has been for the last three to five years."
He added that a current upswing looks attractive but that it is too soon to tell if it is just a blip, or a trend.
He said the company is willing to take whatever measures a potential major tenant would require to relocate to the Bellanca, as long as they lease at least two or three floors.
"There's a lot of incentives there." He said, adding once they have a commitment from a large tenant, they can start accepting smaller tenants.
Mayor Mark Heyck said there has been talk the office tower could become a player in the city's bid to increase residential units downtown.
"There was speculation that it will be converted for residential use," he said, "It would be a good thing, I think, for the downtown core."
Benoit said the Bellanca is ideally situated for residential or office, but that office space makes more financial sense for the company.
He admitted, however, two new office buildings within a couple of blocks has deterred major tenants from moving into the Bellanca. He said if the situation continues, the company may have to rethink its strategy.
"If we're forced to turn it into residential, we might just consider it," he said.
Heyck said having another residential highrise in that part of downtown would fit into the strategy the city has identified for revitalization.
The Bellanca building was constructed in 1972 and renovated in 2007. The outer walls were removed and a state-of-the-art insulating foam was applied.
The one disadvantage of the Bellanca building is that it has a smaller floor plan than the more modern highrises, said Benoit.
