I don't see where there is no retail on the main floor. Looks like a decent amount of space for a few tenants on the main if not a couple restaurants or larger scaled tenants.
http://www.altusinsite.com/files/filelib/spaces/741318/plan/1.jpg
Strategic does not have a great history of well maintained buildings or well designed building IMO. Although I'm happy the building is being saved and although I would love to have seen it restored to its full glamour I also realize that the existing floor plates and size do not lend themselves favorably to leasing. The expansion looks good. At least in concept. The proof will be in the detail work. I think its a good blend between new and old.
Royop is another developer that has completed some fairly good amalgamations of new and old buildings. Again IMO. Their head office on 11th ave and 7 street SW and recently the Biscuit building in the warehouse district. Like them or not, at least they weren't torn down.