The Post, the recently-renovated downtown post office building. (Photos: Sumus Property Group)

By David Opinko

Lethbridge office sector adapting as more workers head back to the office

Jul 13, 2022 | 12:47 PM

LETHBRIDGE, AB – As the effects of the COVID-19 pandemic continue to lessen, traditional work environments in Lethbridge are evolving.

A new report from Avison Young is giving insights into recent trends for the local office market sector.

In the second quarter of 2022, there was a 13.3% vacancy rate for office spaces across the city. Spots downtown were easier to come by as 17% were unoccupied.

Avison Young Senior Associate Ashley Soames says those numbers have risen somewhat since the start of the pandemic.

“I think that the number will maintain right around that 13.3% for the time being as businesses, they’ll slowly gain some more confidence, but we’re not seeing a lot of new business come to Lethbridge regarding office space and their requirement,” says Soames. “Therefore, that rate should stay fairly steady.”

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At the onset of the pandemic, many businesses had to scale back their operations and have as many of their employees as possible work from home.

Most restrictions have since been lifted, leading to more companies sending workers back into their traditional settings.

Associate Shane Garner explains that, “Office space was one of the harder hit sectors for Lethbridge and for Alberta and Canada, for sure, but we have seen quite a return to the office space for a number of reasons. Where we are in this cycle is there is quite a bit of return to office. We feel like the worst is behind us.”

Garner adds that many employers have had to become more flexible as some workers prefer being at home or utilizing a hybrid model where they split time between their homes and their offices.

Soames says the typical 9-5 schedule does not exist for more people now than ever.

“The effects that that can have on office space over the course of time is likely a reduced square footage requirement for an individual user with, maybe not necessarily individual personalized offices for everyone, but more overlap or shared spaces within the individual user space,” says Soames.

Particularly in downtown Lethbridge where more offices are on the older side, some landlords have been considering how they can get more businesses to want to lease their spaces.

The downtown post office is just one example where an older building has been modernized and repurposed to fit the current needs of companies and workers. Its owner, Sumus Property Group, says it took a lot of work to figure out how to turn their “beloved, but unapproachable, historic landmark into a vibrant downtown hub for business, innovation, community, and collaboration.”

In addition to making nicer-looking spaces, Sumus wanted to create a stronger feeling of community through the additions of rooftop patios, tenant lounges and nooks, fitness and wellness studios, and other amenities.

READ MORE: Breathing new life into a Lethbridge landmark

Soames and Garner praised efforts by the City of Lethbridge to incentivize the use of the downtown core including marketing and advocacy work, a tax cancellation policy for major business renovations, and re-designating spaces to promote mixed uses.

The experts from Avison Young say that Lethbridge tends to be a more stable hub for businesses than many other communities due to its balanced economy that is less reliant on oil and gas, low cost of operating a business, and having two large post-secondary schools bringing in a constant flow of young minds.

You can read the full report at AvisonYoung.ca.