edmonton retail market overview - real estate forums · 2005 edmonton real estate forum. vacancy...

EDMONTON RETAIL EDMONTON RETAIL MARKET OVERVIEWMARKET OVERVIEW

Vacancy RatesVacancy RatesRetail SalesRetail SalesRetail Absorption/Construction ActivityRetail Absorption/Construction ActivityRetail TrendsRetail Trends•• Changing Cost StructuresChanging Cost Structures•• Changing Prototypes for RetailersChanging Prototypes for Retailers•• New Retail FormatsNew Retail Formats

Presented by:Presented by:

Darren SniderDarren SniderMay 4, 2005May 4, 2005

2005 Edmonton Real Estate Forum2005 Edmonton Real Estate Forum

VACANCY RATESVACANCY RATES

Edmonton Retail Vacancy Rates

8.18%

6.12%4.85%

4.12%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

Dec '01 Dec '02 Dec '03 Dec '04

Vaca

ncy

Rat

e

Source: The Network Survey

RETAIL SALESRETAIL SALES

Canadian Retail SalesAll Stores - Year-to-Date Feb. 05 vs. Feb. 04

3.60%

7.20%

3.60%

5.90%

1.30%

4.60%

0.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%8.00%

BC Alberta Ontario Quebec AtlanticCanada

CanadianAverage

Sale

s In

crea

se

RETAIL ABSORPTION/RETAIL ABSORPTION/CONSTRUCTION ACTIVITYCONSTRUCTION ACTIVITY

City of Edmonton Retail Absorption

633,000

1,000,000 1,019,000

397,000

0

200,000

400,000

600,000

800,000

1,000,000

2001 2002 2003 2004

Sq.F

t.

Source: The Network Survey

RETAIL TRENDSRETAIL TRENDS

Changing Cost Structures

• Increase in rents

• Increase in construction costs

• Retail developers are now competing with multi-family developers for the same land

• Recruiting and employee retention costs are increasing

RETAIL TRENDSRETAIL TRENDS

Changing Prototypes for major retailers

• Retailers are able to enter smaller markets by creating new store prototypes.

SPRUCE GROVE SPRUCE GROVE –– HOME DEPOTHOME DEPOTSMALL MARKET PROTOTYPESMALL MARKET PROTOTYPE

100,000 sq.ft. to 60,000 sq.ft.

STAPLES STAPLES –– NEW PROTOTYPESNEW PROTOTYPES

20,000 sq.ft. – Urban Markets15,000 sq.ft. – Secondary Markets5,000 – 12,000 sq.ft. – Downtown Markets

NEW RETAIL FORMATSNEW RETAIL FORMATS

• Lifestyle Centres

• New Downtown Retail

• Urban Villages

• Evolution of Power Centres

LIFESTYLE CENTRE

PARK ROYAL, VANCOUVERPARK ROYAL, VANCOUVER

CONTINUED GROWTH OF RETAIL CONTINUED GROWTH OF RETAIL DOWNTOWNDOWNTOWN

URBAN VILLAGEURBAN VILLAGE

CenturyCentury ParkPark

South Edmonton CommonSouth Edmonton Common

THE EVOLUTION OF THE THE EVOLUTION OF THE POWER CENTREPOWER CENTRE