2016 Mercantile Market Report – BOOK FORMAT

CALGARY 2016 • Issue I
RETAIL SPACE
MARKET REVIEW
Brewery District - new commercial development in Inglewood
26,287 Sq. ft. - total avaliable space for lease in phase 1 by JR Mercantile Real Estate Advisors Inc.
www.jrmercantile.com • 1005b 1st St SW • T2R 0T8 • Calgary, Alberta, Canada
APPENDIX
JR Mercantile Profile
P1
New Developments in Calgary
P4
Clients Members of our Team
have Recently Worked with
P5
Retail Space Market Overview
P6
Retail Space Market Overview
Map
P12
JR MERCANTILE PROFILE
JEFF ROBSON
President and Broker
403-770-3071 ext. 200
jeff@jrmercantile.com
Jeff has in excess of 16 years of commercial real estate advisory
experience. He started his career with a large international
brokerage firm; spent several years leasing enclosed malls with
one of Canada’s largest pension funds; traveled across Canada
with boutique tenant representation firms and has head up the
leasing initiatives of some of Canada’s most dynamic mixed use
developers.
With a focus of inner-city development, Jeff participates early
in the design phase to help ensure the end product is not only
leasable but workable for both Landlord and Tenant, ultimately
providing a legacy of integration into the community in which
the project will be situated. With a client base ranging from
institutional landlords to local entrepreneurial developers and
from high profile restaurateurs to national retailers, Jeff is
passionate about the service and results he provides his clients.
Jeff is currently an active member of the International Council of
Shopping Centres (ICSC) and a member of the Commercial Real
Estate Advisory Committee of the Real Estate Council of Alberta
(RECA).
When not working on behalf his clients he looks forward to
spending time with his wife and four kids, finding something
active outdoors or continuing his ongoing battle with his cello.
EMILY NOLAN
Research
P1
JONATHAN GHERON
Director of Leasing and Associate
403-770-3071 ext. 201
jonathan@jrmercantile.com
Jonathan Started his Real estate career as a residential sales
associate with Royal Lepage knowing that he wanted to join the
forces of the Commercial real estate team in the future, after
seeing much success in the residential side Jonathan decided to
pursue his goal of joining a Commercial firm and did so in 2012
by becoming a Retail Leasing associate.
Jonathan’s enthusiasm and willingness to learn are what sets
him apart from the rest, he uses every chance he gets to improve
himself and his techniques. Jonathan is driven to make a name
for himself in the business, while holding customer service to the
highest regard. Jonathan also brings a competitive edge to the
JR Mercantile team being a 2nd degree black belt in Tea Kwon Do
and competing all over the world, Jonathan knows what it takes
to come up on top and will do everything possible to achieve it.
KAYLA BROWNE
Graphic Design
P2
JR MERCANTILE PROFILE
OUR CORE VALUES
WHY OUR CLIENTS CHOOSE US
Collaboration
Working together with our clients and fellow Team members in a
productive and supportive manner in pursuit of common goals
shared by the Team and our clients.
Insight
Bringing an educated and researched perspective to each and
every facet of our involvement in commercial real estate.
Our clients tell us that we are credible in that we deliver on what
we promise. They appreciate our collaborative approach to their
real estate needs whether it’s a tenant looking to enter or expand
in the Alberta market or a developer trying to decide what would
be the highest and best use of their land. Our in depth market
knowledge and understanding of retail and lifestyle trends
is relied on by institutional developers, restauranteurs and
entrepreneurs involved in all aspects of retail real estate.
Accountability
Accountable to each other on the Team and to our clients for
what we agree to undertake
We have experience in leasing assignments ranging from 15,000
square foot street front retail to 500,000 square foot enclosed
shopping centers.
Credibility
Deliver what we promise
WE WORK WITH CLIENTS WHO VALUE
Insightfulness
We choose clients who possess a good understanding of the
market and a vision of where they want to be.
Collaboration
We look for clients who value working in a collaborative
environment, providing us with information and decisions we
require to advance their interests.
Accountability
We choose clients who are looking for a long term relationship
not a one time transaction.
Credibility
We align with clients who have a good reputation and are willing
to act on the advice we provide them and value the experience
we bring to the table.
P3
NEW RETAIL DEVELOPMENTS
IN CALGARY
PROJECTED OR UNDER CONSTRUCTION
CBD
NAME
202-227 17 Ave SW
3 Eau Claire (On Hold)
600 Centre (The Bow South)
608 7th Street SW
Atlantic Living Block
Baron Building
City Centre
Curtis Block
Eau Claire Tower
1110 9th Avenue SW
10th Avenue and 9th Street SW
Verve Condominium
Myriad
First Canadian Centre - East Tower
First South Calgary
GWL Eau Claire
Manulife House
Mount Royal Village West
Oxford Tower
Park Point
Place 10 (East and West Towers)
Q Block
Telus Sky
The Shops at East Village
West Village Towers
17th Ave and 7th Street
17th and 8th Street
Asi Sentinel Block
The Windsor
Arris
Keynote Tower Four
ONE
Stampede Station II (On Hold)
1109-1117 Macleod Trail SE
TOTAL
CENTRE NORTH
NAME
Lido in Kensington
Co-op Development Site on 16th Ave
Brookfield Place
Kensington by Bucci
619 16 Avenue NE (Trans-Canada Hwy)
Centro
1319 Edmonton Trail NE
TOTAL
SIZE (SF)
36,723
20,500
35,000
6,434
12,767
15,800
20,000
60,599
25,034
150,000
7,200
13,200
10,000
21,000
375,880
26,700
6,925
60,000
41,100
2,200
48,200
20,400
31,138
42,000
90,000
25,000
TBD
TBD
24,862
60,000
12,100
50,000
TBD
12,000
1,362,762
SIZE (SF)
9,000
3,000
300,000
9,000
7,915
9,000
4,700
342,615
NORTH EAST
NAME
Keystone Common
8408 Saddlebrooke Drive NE
Airport Business Park
Stonegate Plaza
Aviation Crossing
Deerfoot City (Deerfoot Outlet Mall)
McCall Landing/Jacksonport
Sky Point Landing
Stonegate Common
8408 Saddlebrook Drive NE
Westwinds
TOTAL
SIZE (SF)
700,000
15,460
60,000
18,000
42,000
650,000
1,000,000
500,000
1,660,000
15,460 26,964
4,672,424
NORTH WEST
NAME
Bingham Crossing (Phase 1)
Bow Valley Crossing
Crestmount Centre
Greenwich
Hawkwood Lands
Nolan Hill Co-op Development
North Stoney Greens
Sage Hill Common
Sage Hill Crossing
Tuscany Landing
University City/Brentwood Village
University District
West Calgary Market Place
TOTAL
SIZE (SF)
270,000
TBD
TBD
100,000
TBD
1,200
530,000
386,000
384,000
7,000
40,000
245,000
800,000
2,763,200
SOUTH
NAME
Auburn Bay Station
Providence
Macleod Station
South Macleod Centre
The Bluffs (Deerfoot Meadows)
Walden Landing
Seton (PhaseII)
Mahogany Village Market
TOTAL
SIZE (SF)
84,564
11,200
525,300
TBD
500,000
22,000
450,000
200,000
1,793,064
SOUTH EAST
NAME
3916 Macleod Trail SE
Brewery District (Phase I)
I.D Inglewood
Avli
The Shops at the East Village
Vahlz
East Hills
12725 52nd Street SE
TOTAL
SIZE (SF)
9,007
24,461
6,384
7,629
240,000
1,400
973,000
215,000
1,476,881
SOUTH WEST
NAME
9815 Fairmount Drive SW
Currie Barracks
Britania Block
Trinity Hill at Canada Olympic Park
West Springs Lannding
Mission 34
Springbank Hill Market
Odeon
Highstreet Calgary
Elbow Valley
Infinity at Mardaloop
1506 11th Avenue SW
Willowhurst (Springbank Hill Market)
TOTAL
SIZE (SF)
7,200
250,000
11,400
460,000
80,000
1,790
84,500
11,000
600,000
91,247
11,281
7,900
193,000
1,809,318
TOTAL CALGARY
DEVELOPMENTS
P4
CLIENTS MEMBERS OF OUR TEAM HAVE
RECENTLY WORKED WITH
TENANTS
LANDLORDS
P5
RETAIL SPACE MARKET OVERVIEW
RETAIL SPACE MARKET OVERVIEW
The economic situation in Alberta has been the most widelydiscussed topic in Calgary in 2015. With the price of oil now
below $30.00 a barrel it is hard for Albertans not to become
disillusioned. Although the price of oil is the lowest it has been
in several years, there are many reasons for Albertans and
businesses operating in the province to remain optimistic. The
oil and gas companies in Alberta may not be thriving right now,
but many other industries in the province are. Calgarians are
still spending, perhaps not as much as they were in 2014, but
are nonetheless continuing to flock to Calgary’s many great
restaurants and spend their Saturday afternoons shopping.
Restaurant owners and retailers currently operating in Calgary
haven’t felt as significant of a drop in sales as the media often
portrays, and there continue to be announcements of new retail
shops and restaurants planning to open in 2016.
DEVELOPMENT IN CALGARY
It is hard to believe that we are experiencing an economic
slowdown given the current volume and backlog of development
occurring in Calgary. Developers continue to have a great deal
of interest in the Calgary market and are holding onto the
belief that the price of oil will rebound once again. Developers
understand that when the price of oil does rebound there will
be rapid growth in the number of people interested in buying
condos and apartments located in the inner-city, close to the
great amenities available in Calgary’s core. Thus, in order to
meet current and future demand, it is no surprise that in the
past year, several major mixed-used development projects were
announced that contain sizeable amounts of retail space.
The East Village continues to be a hotspot for developers,
and they are racing to purchase the few remaining sites. The
upcoming construction of the new central library and the
national music centre in the next few years; the recent renovation
of St. Patrick’s Island, as well as the opening of Charbar, Phil &
Sebastian Coffee Roasters and Sidewalk Citizen Bakery last year,
it is not surprising that this area has garnered such attention
from developers. Embassy Bosa, one of the main developers
with significant interest in the East Village, announced last fall
that it will build a 34-storey mixed-use building in partnership
with RioCan. The development, which is being called Arris, will be
Embassy Bosa’s fourth development project in the East Village
and will include approximately 500 residential units and 200,000
square feet or retail space, 80,000 of which square-foot will be
occupies by Loblaws.1
Calgary’s Beltline region has always been a prime spot for
residential and commercial development, but the City’s recent
revitalization of the underpasses between 9th and 10th Avenue
SW has made the area all the more desirable to developers. There
has been a flurry of development on 10th Avenue in particular.
The completion of Qualex Landmark’s Mark on Tenth (34-storey
mixed-use tower) WAM Developments 17 and 34-storey mixeduse towers, Strategic’s ONE development (32-storey mixed-use
tower), Centron’s Place 10, Lamb development’s 31-storey mixeduse tower will add over 2,500 residential units to 10th Avenue.2
Lastly GWL’s redevelopment of the Alberta Boot site consisting of
2 35-story towers housing 303 apartments and a Marriot hotel.
The influx of new residents is great news for inner-city retailers
as they will be gaining a large number of customers living with
walking distance, and that fit their target demographic.
17th Avenue and the East Village continue to be a hotspot for
developments. However, these areas are seeing stiff competition
from the communities that surround the inner-core in terms of
the pace and volume of new development. For example, Embassy
Bosa and Canada Lands Company have teamed up for a multi-use
development that will feature over 600 residential units, 250,000
1 Alex Frazer-Harrison, Arris To Make Big, Bold Statement As Gateway To East
Village, October 16, 2015:
http://www.vancouversun.com/
Arris+make+bold+statement+gateway+East+Village/11443183/story.html?__
lsa=b3e0-b7b7 and Mario Toneguzzi, Embassy BOSA still bullish on Calgary
condo market, September 9, 2015: http://calgaryherald.com/business/localbusiness/western-canadian-developer-embassy-bosa-bullish-on-calgary-condomarket.
2 Richard White, 10th Avenue Warehouse District Renaissance, January 7, 2016:
http://calgaryherald.com/life/homes/condos/white-10th-avenue-warehousedistrict-renaissance.
P6
RETAIL SPACE MARKET OVERVIEW
square feet of retail space and 613,000 square feet of office space
and eventually 3,500 homes.3 West Campus Development Trust
will also soon begin work on a mixed-used development that is
situated in the northwest between the University of Calgary, the
Foothills Hospital and the Calgary Children’s hospital. This new
urban village will include 245,000 square feet of retail space, 7
Million square feet of residential space and 1.5 Million square feet
of office space and 40 Acres of green space.4
While the inner-city continues to produce the largest number
developments that include some retail space, the Northeast
dominates the Calgary market in terms of total planned square
footage of retail space, with over 3 Million square feet of retail
space being built in the next few years. Shape Properties
acquired Deerfoot Mall last year and announced that it would
convert the enclosed mall to a collection of retail buildings that
can be accessed by exterior doors connected by a collection of
pedestrian-friendly streets and also add 650,000 square feet of
retail space.
Developers’ willingness to purchase expensive tracts of land
in the inner-city provides strong evidence of their faith in the
Calgary Market. For example, the Great Group of Companies paid
almost $49 million for the city block that the YWCA was located
on and Grosvenor recently paid over $8.25 million for the 26,000
square-foot lot that Sony was formally located at 1405 4th Street
SW.5 Jeff from our team was involved in the recent sale of the
Curtis Block lands, 84,000 square feet of land between 12th and
13th Avenue SE.
3 Mario Toneguzzi, Development Permit Application Submitted for Currie
Barracks, January 6, 2016: http://calgaryherald.com/business/real-estate/
development-permit-application-submitted-for-currie-barracks
4 https://myuniversitydistrict.ca/assets/Uploads/WCDT-RealEstateBroch-7-Sept2.
pdf.
5 Sharon Crowther, Downtown Calgary keeps booming along its Beltline,
December 11, 2015:
http://www.theglobeandmail.com/life/home-and-garden/real-estate/downtowncalgary-keeps-booming-along-its-beltline/article27720405/.
P7
ECONOMY
For the past few months, the media have painted a very
negative picture of the economic situation in the province of
Alberta. However, it’s not all doom and gloom; many companies
in Calgary are still growing, and taking on new employees. The
agriculture, construction, manufacturing, support services,
public administration and educational services industries all
experienced growth in 2015.6 Though the city is highly dependent
on the oil and gas industry, retailers must remember that there
are many other profitable industries in Calgary that have no ties
to the oil and gas industry. There is still money to be made in the
Calgary and residents and tourists are still spending.
A weakened Canadian dollar resulted in an increase in the cost of
living in 2015, but this was not necessarily bad news for retailers
as they benefitted from a decline number of Canadians shopping
in the US or online through US retailers. Moreover, a weak dollar
has encouraged Americans to travel north to shop, pulling yet
more business into the province. In the first ten months of 2015
the number of Canadians making overnight shopping trips to the
US declined by 21% while the number of Americans travelling
north to shop increased by 9.3%.7 Doug Porter, chief economist
at BMO Capital Markets suspects that as long as the Canadian
dollar remains at its current low, “cross-border shopping (to
the U.S.) will all but die”.8 This shift, combined with an increase
in the number of Calgarians taking staycations rather than
vacationing out of the province means that more money is being
spent locally. Calgarians who chose to remain in the city for their
6 Mario Toneguzzi, Hiring Still Taking place in Some Calgary Industries,
December 30, 2015: http://calgaryherald.com/business/local-business/hiringstill-taking-place-in-some-calgary-industries.
7 Alistair Sharp and Amrutha Gayathri, Slumping Currency Holds Silver
Lining for Canadian Retailers, January 7, 2016: http://ca.reuters.com/article/
businessNews/idCAKBN0UM01W20160108.
8 Alistair Sharp and Amrutha Gayathri, Slumping Loonie Holds Silver Lining for
Canadian Retailers as Cross-Border Shopping Expected to ‘All But Die’, January
12, 2015: http://business.financialpost.com/news/retail-marketing/slumpingloonie-holds-silver-lining-for-canadian-retailers-as-cross-border-shoppingexpected-to-all-but-die.
vacation will be more likely to seek out local indulgences like
buying clothes or going out for dinner in order to counteract
feelings of deprivation.
Developers also stand to benefit to a degree from lower oil
prices because layoffs by oil and gas companies have increased
the number of skilled tradesmen in the city searching for work.
This influx will not only allow developers to develop sites at an
accelerated pace, it will also enhance the quality of the mixeduse towers being built in the city.
Fear about the economic climate in Calgary led to an increase
in profits of Calgary’s consignment stores in 2015 as many
Calgarians have sought to make a bit of extra cash by selling
unwanted brand-name clothes. Some consignment store owners
have said that December was most profitable month ever. This
suggests that Calgarians are still very interested in purchasing
quality goods, but are being more strategic about how they do
so.9 Eight new consignment stores opened in Calgary in 2015 to
meet the huge demand for high-end clothing at great prices.10
RETAIL TREND
In 2015, a number of major national and foreign retailers set up
shop in Calgary and opened new or additional Calgary locations.
Chinook Mall had a particularly good year as it welcomed Wilfred,
Hot Topic, Kate Spade, Marc Cain, Pottery Barn Kids, IndigoKids
and American Girl Boutique. The highly popular Canadian yoga
wear company, Lolë, and the popular American home décor
store, West Elm, joined the ranks of other great national and
local retailers on 17th Avenue this past year. 2015 was not just a
great year for fashion lovers in Calgary; hunters and adventureseekers anxiously awaited the opening of the first Cabela’s store
in Alberta at Shape Properties’ Destination Deerfoot in the NE.
If 2015 was a great year for Calgary shoppers, 2016 looks like it
is shaping up to be even better as Saks Off 5th will open in Cross
Iron and the upscale sporting goods retailer, Sporting Life will
open its first western location in Southcentre Mall in the Fall of
2016. Recent announcements about store openings is certainly
welcome news to Calgarians as it suggests that retailers have
faith that economic recovery in Alberta is imminent.
VACANCY RATES IN CALGARY
Vacancy for retail space is currently 3.15%, up nearly one percent
since last June. The increase is due to the fact that several
developments with retail components were completed in the
last six months in the downtown core and the NE. We predict
that retail vacancy rates will increase to 4% by the end of 2016.
An increase in the price of oil will encourage retailers already
operating in Calgary to expand as well as draw new retailers,
both national and foreign, to the city.
9 Stephanie Wiebe, Calgary consignment stores deluged by high-end brands
amid downturn, December 29, 2015: http://www.cbc.ca/news/canada/calgary/
calgary-consignment-stores-designer-brands-1.3377686.
10 Kait Kucy, 9 New Consignment Stores in Calgary, November 25, 2015:
http://www.avenuecalgary.com/Shopping-Style/New-Consignment-Stores-inCalgary/.
2016 also looks to be a good year for the craft beer industry.
Recent changes to the taxation laws for breweries in Alberta
will provide some much needed tax relief for small-scale beer
producers, as amendments to the beer and liquor taxation laws
seek to remove the barriers that prevent small producers from
growing their businesses.11
RESTAURANT INDUSTRY
2015 was a great year for foodies in Calgary as a number of great
restaurants opened in the city. Though high-end restaurants
struggled in 2015, mid-priced restaurants had a profitable year
as Calgarians opted for more affordable food options rather than
give up dining out. With the number of new restaurants opening
in the city in 2015, it is difficult to believe Calgary is in the midst
11 Claire Theobald, Alberta Tax Has Craft Brewer Crying in Beer, November 16,
2015: http://www.edmontonsun.com/2015/11/16/alberta-tax-has-craft-brewercrying-in-beer
P8
RETAIL SPACE MARKET OVERVIEW
of an economic slowdown. And with so many great new food
choices in the Calgary, it really is no wonder that the restaurant
industry, for the most part, continued to thrive in 2015 despite
economic instability. Calgary’s booming restaurant industry has
inspired several well-known chefs to launch new concepts in
2016.
Selection of Restaurants that opened in 2015
Ace Diner: Our team is proud to have been involved with the
opening this new all-day diner. The restaurant is serving up twists
on classic diner foods as well as offering a range of baked goods,
classic milkshakes, Phil and Sabastian coffee, and even several
healthy smoothies.
Charbar: Since its opening last June Calgarians have flocked
to the Simmons Building in the East Village to sample Chef
Jessica Pelland’s Argentinian-inspired creations. Charbar
shares the Simmons building with Sidewalk Citizen Bakery and
Phil & Sebastian Coffee Roasters, both of which similarly share
Pelland’s passion for elevating Calgary’s food scene by offering
unique foods and drinks made with quality, ethically-produced
ingredients. Unlike its sister restaurant, Charcut, the focus of
Charbar’s menu is largely vegetarian cuisine. Though there are
many options for meat lovers, vegetarians will be astounded by
the number of choices they have as half of the menu items are
veggie-friendly. Be sure to check out Charbar’s rooftop patio this
summer as Pelland and her staff will be designing a new menu
exclusively for this section of restaurant.
Pigeonhole: Justin Leboe, the co-owner and executive chef at
Model Milk on 17th Ave, has further solidified his title of one of
Calgary’s, and arguably Canada’s, most talented chefs with the
opening of this restaurant. In November enRoute Magazine
named Pigeonhole the “Best New Restaurant in Canada”. After
one look at European-inspired menu that challenges all culinary
rules, it is easy to see why Leboe’s latest venture has earned him
local and national acclaim.
P9
Cactus Club Cafe (on Stephen Ave): The long awaited opening
of this location of a profitable Canadian chain occurred this
past fall and we can confidently say that the hype was not
undeserved. The restaurant has been extremely busy since
it’s opening in November. The restaurant’s initial success is
not surprising given that this location has exceptionally great
food, friendly staff and interesting décor. We are sure that the
restaurant will continue to be a favourite spot of Calgary’s
downtown workers for many years to come.
Beltliner: We are extremely pleased to have had a hand in securing
the space for one of the Calgary’s biggest culinary hits of 2015.
Given that the restaurant is owned by Brendan Bankowski, one
of the co-owners of Taste (another Beltline favourite), Calgarians
had high expectations for this restaurant and our team can
confidently say the restaurant lived up to those expectations. The
restaurant has been so successful in the few months that it has
been open that the owners are already considering launching a
similar concept in another one of Calgary’s trendy communities.
Made: Former Brava Bistro chef, Andrea Harling, is serving up
healthy, ready-made meals for busy Calgarians in five locations
across the city. The restaurant caters to health-conscious
Calgarians who want to maintain a healthy diet despite their busy
lifestyle. The success of the recently-opened Calgary locations
has motivated the owners to open locations in Vancouver later
this year.
Vitality Tap: Our team was incredibly excited when this American
Juice chain approached us to find them a retail space in Calgary.
The juice bar’s first Canadian location in Fifth Avenue Place
has been a great success. Vitality Tap’s development team
is constantly conducting research to devise the healthiest
combinations of vegetable and fruit juices that will keep you
looking and feeling great.
The Derrick Gin Mill and Kitchen: This new Stephen Avenue
restaurant is a new favourite of Calgary’s gin lovers. The Derrick
assumed the space of the short-lived El Dorado restaurant and
was able to open quite quickly because owners opted to make
few changes to the décor. With over forty types of gin available,
there really is a drink for everyone, even those who claim not
like gin. In addition to the restaurant’s extensive drink menu, the
Derrick has an impressive food menu that includes items such
as smoked beef tatare that arrives at your table under a glass
dome, and gin and tonic inspired desserts.
PRLR Lounge: It is an intimidating task to open a restaurant in
Kensington as there already are so many great restaurants and
bars in the area, but the PRLR Lounge has proven to be an equal
contender. The popularity of the restaurant is largely due to its
speak-easy theme and interesting drink menu. Though the food
choices are limited at this cocktail lounge, it does serve dishes
that you will not find anywhere else in the city. For example, the
restaurant offers French Toast for dinner and a dinner-time take
on the ploughman’s lunch.
Native Tongues: In 2015 Cody Willis landed his first restaurant
with a creative take on Mexican inspired food and after a few
short months started to receive top marks from a number of
food critics. We were pleased to be involved in working with Cody
to secure his space at 235 12th Avenue SW.
Highly-Anticipated 2016 Restaurant Openings:
Vin Room: We would like to congratulate our friend, Pheobe
Fung on the upcoming opening of a third Vin Room location. She
will be joining Calgary Airport’s newly renovated international
terminal. Be sure to arrive at the airport early for your next
international flight so you can dine at this excellent restaurant
before you depart!
Ten-Foot Henry: We are excited to announce the upcoming
opening of Steve Smee’s and Aja Lapointe’s restaurant. Having
brokered the deal for this prime 1st street location, we are
especially excited to sample the menu that Smee and Lapointe
have been talking about for the last several months. Given Smee
and Lapointe’s extensive experience working and owning some
of Calgary’s best restaurants, we are sure that their latest venture
will not disappoint Calgary’s foodies.
Shokunin: Many Calgarians were sad to see Downtownfood close
last summer, but Darren MacLean’s latest venture, Shokunin,
looks to be just as promising. MacLean’s new restaurant will serve
authentic Japanese dishes and will be located in Mission. Just
having spent several months in Japan studying the country’s
cuisine, MacLean is a deserving competitor amongst the other
great restaurants in Mission.
Cluck’n’Cleaver: The latest venture of Top Chef competitor Nicole
Gomes is proving that fried chicken can be sophisticated. The use
of quality ingredients and an “undying love” of chicken are what
set Gomes and her sister Francine’s fried and rotisserie chicken
takeout joint in the Beltline apart from quick-service restaurants
offering similar dishes.12 With Gomes’ culinary reputation as
a chef, we are sure that after a bite of her chicken you will be
convinced that fried chicken is not just a late-night indulgence.
Oliver & Bonacini: After having been doing renovations for nearly
a year at the Bay on Stephen Avenue, Calgarians have becoming
increasingly curious about what this 11,500 restaurant will look
like when it is completed in the spring of 2016. This massive
restaurant will comprise of 7,500 square foot dining room and
a 4,000 square foot lounge with attached outdoor patio.13 We
cannot wait to taste the dishes that top Canadian chef, Ryan
O’Flynn will be serving up.
WHAT 2016 HOLDS FOR CALGARY’S RETAIL MARKET
Economists predict that the price of oil will return to the $50.00
a barrel mark by the end of 2016.14 An increase in the price of
oil and the ensuing restoration and creation of jobs will help to
12 Julie Van Rosendaal, Chef Nicole Gomes on her Climb to Culinary Success,
Aug 28, 2015: http://www.cbc.ca/news/canada/calgary/chef-nicole-gomes-on-herclimb-to-culinary-success-1.3208327.
13 Liane Faulder, Edmonton’s loss is Toronto’s gain as chef Ryan O’Flynn
leaves Westin Hotel, November 3, 2015: http://edmontonjournal.com/life/food/
edmontons-loss-is-torontos-gain-as-ryan-oflynn-leaves-westin-hotel.
14 James Berkow, Experts count on an oil rebound next year despite
crude’s rout, December 22, 2015: http://www.bnn.ca/News/2015/12/22/Oilsrout-hasnt-extinguished-optimism-as-experts-count-on-a-rebound-in-2016.
aspx.
P 10
RETAIL SPACE MARKET OVERVIEW
restore Calgary residents desire to purchase luxury and other
consumer items. 2016 will be a challenging year for retailers,
but there are a number of actions that companies can take to
encourage Calgarians to spend. The median age of Albertans is
36, the lowest of all provinces.15 Millennials (individuals aged 1835) have a great deal of spending power and with so many of
them located in Calgary, it’s important for retailers to tailor their
products and marketing strategies to this demographic. One way
retailers can accomplish this is by developing and maintaining
an online presence through which they can educate consumers
about their products and motivate them to visit the store.
Not only has the internet made it possible for people to make
purchases without ever leaving their home, it has also changed
the way people shop in brick and mortar stores. Millennials often
know what they will buy before they even set foot in a store.16
This means that retailers in Calgary must strive to connect with
consumers online before they can do so in person.
Its important for retailers to not to get too hung up on the price of
oil; there is still money to be made in Calgary in industries other
than oil and gas. Calgary has a significant population of people
still interested in spending, but they are being more selective
with their purchases. This makes it more important than ever for
restaurants and retailers to focus on creating quality products.
Retailers cannot afford to become complacent; in order to remain
competitive, they must continuously evolve and be proactive
towards the constantly changing demands of consumers. The
most successful retailers of 2015 were those that experimented
with new concepts like opening cafés and restaurants within
stores.17 It is necessary for retailers and restaurants to remain
informed about new fashion and culinary trends and develop
15 Urban Development Institute - Calgary and the Canadian Home Builders’
Association, Calgary’s Young Population Demands Diverse Housing, December
10, 2015: http://www.smartergrowth.ca/calgarys-young-population-demandsdiverse-housing
16 Yconic, The Millennial Shopper: More Social and Educated than Ever Before,
November 20, 2015: https://yconic.com/corporate/Youth%20Insights/TheMillennial-Shopper.aspx.
17 Retail Insider, Why Canadian Department Stores are Increasingly Adding Food
and Beverage Components, November 16, 2015: http://www.retail-insider.com/
retail-insider/2015/11/food-beverage.
P 11
viable business strategies that will ensure their prosperity for
many years to come. We believe that developers in the city have
the right mindset as they are focusing on the long term, and
understand that the economic slowdown in Calgary will be shortlived; with so many young, well-educated individuals in the city
how could it not.
NORTH WEST
Inventory
Vacant
Vacancy Rate
CRU
Retail Rates
CENTRE NORTH
OVERALL
Inventory
Vacant
Vacancy Rate
CRU
Retail Rates
2,240,802 sf
95,538 sf
4.26%
Inventory
Vacant
Vacancy Rate
35,654,236 sf
1,115,780 sf
3.13%
$20-$40
5,216,875 sf
94,966 sf
1.82%
$25-$60
NORTH EAST
Inventory
Vacant
Vacancy Rate
CRU
Retail Rates
8,623,026 sf
248,551 sf
2.88%
$15-$35
CBD
Inventory
Vacant
Vacancy Rate
CRU
Retail Rates
3,798,935 sf
237,620 sf
6.25%
$18-$120
SOUTH WEST
Inventory
Vacant
Vacancy Rate
CRU
Retail Rates
3,273,819 sf
139,545 sf
4.26%
SOUTH EAST
Inventory
Vacant
Vacancy Rate
CRU
Retail Rates
$30-$45
3,023,317 sf
87,570 sf
2.90%
$15-$35
SOUTH
Inventory
Vacant
Vacancy Rate
CRU
Retail Rates
9,477,462 sf
211,990 sf
2.24%
$25-$45
P 12