Canadian Natural Resources Limited will move into a downtown Calgary office tower that has was vacated in 2023, the Calgary Herald reported.

CNRL will occupy the entire 640,000-square-foot Shell Centre located at 400 Fourth Avenue S.W., the Herald reported while citing Colliers Research as its source. The Cadillac Fairview-owned building was previously occupied by, as its name suggests, energy major Shell Canada.

The 33-storey Shell tower is almost 50 years old. Cadillac Fairview and CNRL have not commented on the planned move. CNRL was likely motivated by a low-lease-rate offer, Mason Lam, JLL’s Calgary office practice leader, told the Herald.

“We know that [tenants are] always driven by economics,” Lam, who was not aware of the transaction details, told the Herald. “Cost is always primary.”

CNRL will also take up 276,000 sf in a nearby office building, formerly known as the Devon tower, at 400 Third Avenue S.W., the Herald reported. As it relocates, CNRL will vacate about 650,000 sf in combined space in Bankers Hall and TD Square on Eighth Avenue S.W.

“Once they make that move, you’re going to see a surge in availability as their space [being vacated] comes back on the market,” Lam told the Herald.

CNRL is slated to complete its relocations in 2025 and 2026.

Shell relocated from its former tower to the much newer, iconic Bow at 500 Centre Street S., while reducing its footprint by 315,000 sf.

Photo: Mulvey+Banani