A downtown Calgary office tower has been put on the sales block at a low price, according to a report.

Cadillac Fairview is selling 29-storey Encor Place at a requested price of $21.5 million, or $60 per square foot, and has retained RBC Capital Markets to arrange the sale of the B-class property, the Calgary Herald reported. Jason Cottle and Tosh Findlay, based in RBC Capital Markets’ Calgary office, are marketing the property.

The 359,131-square foot tower is located at the corner of 7th Avenue S.W. and 6th Street S.W. Citing unidentified sources, the Herald reported that the selling price is near the bottom of the cycle and a similar property in the west end sold for $450 per square foot at the peak.

The downtown office market has been ravaged by high vacancy in recent years. A global energy industry downtown, the delivery of several new buildings that were in the pipeline before the COVID-19 pandemic and hybrid work patterns have taken a large toll on the area a

But new product has fared reasonably well due to a flight to quality.

Encor Place is 40% leased, the Herald reported.

Image: Cadillac Fairview