The high-tech troops have rolled into Silicon Barracks.
It’s inexpensive space, says Bob Blackshaw, CEO of IVRnet Inc. His company moved to the former Currie Barracks section of CFB Calgary about two years ago, shortly after buildings at the ex-army base became available.
It’s a creative environment, says Gary McKelvie of CB Richard Ellis, which acts as leasing agent for Canada Land Co.
The businesses involved are looking for comfortable and inexpensive space “to go create,” he adds.
A culture and sense of community are developing. “Silicon Barracks they’ve named it,” he says. “I think that’s cool — and it didn’t come from me.”
Blackshaw at IVRnet notes that the base has amenities including a running track, and some companies are working on a way to run the fitness centre as a co-op.
The only disadvantage is that some of the former military buildings don’t have air conditioning. Tenants might have to leave windows and doors open in summer, he says.
IVRnet’s building is networked and air conditioned because it used to be the communications building.
“It’s not very pretty, but it’s very functional,” he says. “ We call it the Bunker.”
IVRnet has three vertical market business-to-business companies, and has made an offer to take over Global Industrial Solutions Network Inc. — another company at the former army base — subject to regulatory approval.
David Morley, comptroller of Pandell Technology Corp., also cites reasonable rent as a reason for moving to the base.
Pandell was the first company in its building in January 1999 and had been looking at other areas of the city. It was in “growth mode” and the base has been able to accommodate its growth as it added employees.
Pandell had to add full network cabling and backup circuits to its space. The Web-based development company does design work and also has two software suites in use by other companies.
Melodie Creegan, president of Mosaic Studios, says her company works closely with another firm that moved from the northeast. She likes the uniqueness of the space, its closeness to downtown and the fact that clients can park for free.
It’s also in the same area as other related industries that might require Mosaic’s services. Her Web design company even got together with two other firms at the barracks to form a new company. The business will offer a “community browser” that will link or list all kinds of businesses and services.
McKelvie at CB Richard Ellis counts more than 100 companies in Silicon Barracks and estimates half are high-tech outfits.
It’s no surprise to him. There’s lots of parking, green space, amenities including showers in every building and the security fence and guard booth are still in place. The rents run around $14 per sq. ft. per year gross, he says. Most software firms are on two- or three-year leases, and space can be improved on a three-year lease, he says.
Some buildings on the base could be torn down, he says. But for the buildings near the parade square, that requires six months notice after June 30, 2003. For a software company, 21/2 years is a long time. With the Web year running at three months, they’ll be big or out of business, says McKelvie.
The troops have rolled in, and some are already winning successes. On the battlefields of e-commerce and software development, the outcome is decided quickly.
Telus has sold two major office properties in Edmonton and B.C. and plans the sale of two more buildings in Calgary.
Telus won’t be leaving the real estate market, but will be “exiting the ownership of major office towers,” spokesman Kevin Noel said. Telus still owns about 2,500 properties and doesn’t plan to sell more.
The company will sign long-term leases to stay in the buildings and use the money for its strategic growth plan. That is the major fibre-optic program and IP network, especially in its new markets.
The buildings sold are the corporate headquarters in Burnaby, B.C., and the twin-tower Telus Plaza in Edmonton. The prices totalled $192.25 million. On the market are the Telus Tower in downtown Calgary and the Telus Mobility building at 3030 2nd Ave. S.E.
Telus closed Friday at $38.90 on the Toronto Stock Exchange, down 20 cents.
Hardwood Properties Ltd. is on course buying back some of its shares, says company president Gus Kolias.
Hardwood, which buys, renovates and resells apartments as condominiums, offered last month to buy 10 per cent of its shares over a year. The remaining shares would then be more valuable. Hardwood trades on the Canadian Venture Exchange under HWP. It closed last Friday at 36 cents, up eight cents.
Home buyers are accepting the Internet more as a place to shop for mortgages as well as houses, says an e-commerce provider.
A Canadian Mortgage and Housing Corp. survey released Friday shows that 45 per cent of first-time house buyers used the Internet in finding a mortgage.
It showed 80 per cent of mortgage borrowers have access to the Net and one-third used the Net in mortgage shopping.
“The prevalence of Internet use among first-time home-buyers suggests that these early adopters are paving the way for a generation of home-buyers for whom Internet use will be second nature,” said Kate Taylor, Basis100 marketing vice-president.
Basis100 provides software for mortgage brokers, lenders and consumer portals such as E-Trade Canada and 411Home.Net.
Web Watch:
www.telus.com
www.cbrichardellis.com
www.basis100.com
