Calgary Retail Market Update · Calgary Retail Market Update Prepared for: NAIOP Calgary Presented...
Transcript of Calgary Retail Market Update · Calgary Retail Market Update Prepared for: NAIOP Calgary Presented...
Calgary Retail Market UpdatePrepared for: NAIOP Calgary
Presented by:
Bernie Bayer
Taurus Property Group
• Facts & Figures
• Employment & Retail Vacancy
• Retail Sales & Rent
• Key Trends in Retail
• New Developments
• New Retailers
• Retailers Coming & Going
• Soapbox
Facts & Figures• Calgary area population: 1.32 Million
• Calgary area labor force: 798,000
• Total employed (Jan 2010): 740,000
• Unemployment: 7.27%
• Total retail inventory: 32 Million square feet
• Vacancy: 2.9%
• Developed retail space per capita: 24 sf
• Developed space per capita in US: 42 sf
• Average Retail Sales per Capita $14,000
(23% Higher than national average)
Employment & Retail Vacancy
Retail Vacancy Rate
Unemployment Rate
Retail Vacancies and Unemployment (USA)
Retail Sales & Rent
HEALTH & WELLNESS
Key Trends in Retail
FAST CASUAL RESTAURANTS
Key Trends in Retail
SHOPPERTAINMENT
Key Trends in Retail
VIRAL MARKETING
Key Trends in Retail
Chinook Centre: 180,000 sf
-Abercrombie
-Anne Klein
-Apple
-Louis Vuitton
-Michael Kors
-Tiffany & Co.
New Developments
Aspen Landing: 215,000 sf(Safeway, Shoppers Drug Mart, Banks, Mission, Crave Cupcakes, 40,000 sf medical/office )
Silverado: 120,000 sf (Grocery & Drug)
Gates of Panorama Hills: 62,000 sf(Rexall, TD Canada Trust, Tim Horton’s)
Gates of Walden: 60,000 sf(Shoppers Drug Mart, RBC, Pet Planet)
Creekside Crossing (Airdrie): 60,000 sf(Sobey’s, Original Joe’s)
New Developments
(Suburban)
Hanson Corner: 45,000 sf (Best Buy)
Centennial: 30,000 sf (Flat Iron Grill)
Eighth Avenue Place: 55,000 sf
Keynote: 40,000 sf (Sunterra)
The Bow: 24,000 sf
The Core (Holt Renfrew, H&M, Indigo, Harry Rosen)
New Developments
(Urban)
New Retailers
Rogers Video (Downsizing)
McNally Robinson (CCAA)
Office Depot (Retreating)
Rona (NOI down 12%)
Starbucks (Bad Landlords!)
Retailers in Decline
Apple ($35 Million 2009 Sales in Market Mall)
Lululemon (Net earnings up 17% in 2009)
Best Buy ($607M EBITDA in Q3 2009 +16%)
Shoppers Drug Mart ($585M NOI 2009)
Tim Horton’s ($25k per day during Olympics!)
Thriving Retailers
Soapbox
• Disconnect between policy, planning &
reality…
• The elusive “lifestyle” centre
• Retail as an amenity
• Short-term thinking
Policy, Planning & Reality• The growing disconnect between Policy and Reality
• Planners are caught in the middle…and they are unprepared
• A more livable and pedestrian oriented City is
commendable…but
• Calgary’s climate and culture are unique…and so are the
places we shop
• A myopic approach to retail planning leads to frustration
• The City needs a ‘Made in Calgary” approach to retail
planning that recognizes that we are a ‘car centric’ City with
long winters.
The Elusive ‘Lifestyle’ Centre• A lifestyle center is a development that combines the
traditional shopping mall but with leisure amenities oriented
towards upscale consumers.
• Calgary does not have a true lifestyle centre and it is unlikely
to ever have one.
• Aspen Landing is as close as we may ever see – and it is not
anchored by typical shopping mall tenants.
• Chinook Centre, Market Mall, The Core and Southcentre fill
this niche.
• Calgary’s climate does not lend itself to this format.
Retail as an Amenity
• Downtown Landlords must consider the retail
component of office buildings as an amenity.
• First consideration should be whether the retail is
consistently meeting the needs of the office tenants.
• Rent is an important but secondary consideration.
• In many cases, retail rent ranks below parking
revenue.
Short-Term Thinking
• In the past cycle, the level of demand by all types of
retail tenants far exceeded supply.
• Some Landlords completed leases with retail
tenants that were not sustainable.
• While this is devastating to an independent retailer
– it also has a negative impact on Landlords.
• Securing best in class retailers under sustainable
economic terms has exponential benefits to
Landlords.
Questions?
www.taurusgroup.com