Metro Vancouver Retail Report

Metro Vancouver Retail Report
Year End Highlights 2007
Economy
Canada’s economic growth is forecast to be 2.7% in 2008,
up from its 2007 forecast of 2.6%. The Canadian dollar
soared in early November reaching highs of $1.10 USD before
settling around parity, marking one of the most turbulent
months for the dollar in nearly a decade. The Canadian
dollar continues to retain its strength, and is currently sitting
at or close to parity on an ongoing basis. Given the strength
of the Canadian dollar many consumers are going south to
look for better deals. To help discourage Canadians from
seeking cheaper goods in the States, some major retailers
and automotive manufacturers are cutting their prices in
order to stay competitive with our American counterparts.
Downtown Granville Street
• Downtown Granville has been revitalized with two
new major retail tenants over the past six months. The
Shore Club, a new 13,000 sq ft restaurant concept
opened at the corner of Dunsmuir and Granville. With
a 10 year lease, the Shore Club will be one of the
major restaurants on Granville for years to come.
• The Steve Nash Fitness Club opened at 610
Granville. Totalling 40,000 sq ft this club offers a
high end fitness facility in the downtown core.
www.dtzbarnicke.com
• Holt Renfrew relocated within Pacific Center
from 60,000 sq ft to over 100,000 sq ft also
at the corner of Dunsmuir and Ganville.
Gastown
• Gastown is fast becoming a popular destination for
tenants to capitalize on the area’s new upscale appeal. An
example of this is Koolhaus which moved from its popular
Kitsilano location into 10,000 sq ft at 1 Water Street.
• Vancouver designer John Fluevog Boots and Shoes
Ltd is opening their second Vancouver location
at 65 Water Street occupying 5,621 sq ft.
• Inform, a high end retailer specializing in European lines,
opened a new 30,000 sq ft location at 50 Water Street
in spring of 2007. In early January 2008, Inform will also
reopen its original 12,000 sq ft store at 97 Water Street as a
high end mono brand store for two top-notch product lines.
• After 11 years in Yaletown, Coastal Peoples Fine
Arts Gallery has opened an additional location
in Gastown. Located in a historic warehouse at
312 Water Street, the gallery showcases one of
Vancouver’s largest totem pole collections.
Metro Vancouver Retail Report
Year End Highlights 2007
Downtown Core
6
5
1
15
7
2
3
9
11
4
14
10
8
13
12
Yaletown
• The Canada Line’s impact on Yaletown retailers has been
felt significantly at Davie Street and Pacific Boulevard,
with sales down 40% to 60%. Obsessions gift shop
has permanently closed its doors and other retailers
could follow. Pedestrian traffic has practically halted
from 3,500 people a day to around 100. As a result,
some landlords are dropping their rent by up to 15%.
• Plan B Lounge and Eatery has signed a long term
lease, and has now opened its doors at 1144 Homer
Steet, after taking possession in the Spring of 2007.
• In December The Browns Restaurant Group opened
up a new dining establishment, Pinkys Steakhouse
& Cocktail Lounge, which took 2,500 sq ft at 1265
Hamilton Street. They are expected to open a second
Pinkys location in Kitsilano in the Spring of 2008.
Robson Street
Street Segment
Net Rental Rate
Range (psf ) ‘06
Net Rental Rate
Range (psf ) ‘07
1.
Robson Street (Burrard to Bute)
$155.00-$225.00
$155.00-$225.00
2.
West Georgia (Richards to Bute)
$33.00-$140.00
$33.00-$140.00
3.
Granville Street
$50.00-$130.00
$50.00-$130.00
4.
Robson Street (Richards to Burrard)
$60.00-$100.00
$60.00-$100.00
5.
Robson Street (Bute to Denman)
$60.00-$85.00
$60.00-$100.00
6.
Denman (West Georgia to Davie)
$35.00-$70.00
$35.00-$100.00
7.
Hornby Street
$18.00-$70.00
$22.00-$70.00
8.
Davie Street (Pacific to Burrard)
$42.00-$55.00
$42.00-$55.00
9.
Burrard Street (Georgia to Robson)
$32.00-$70.00
$35.00-$80.00
10.
Davie Street (Burrard to Bute)
$30.00-$55.00
$35.00-$55.00
11.
Water Street (Gastown)
$28.00-$50.00
$35.00-$50.00
12.
Mainland Street
$29.00-$45.00
$35.00-$45.00
13.
Hamilton Street
$12.00-$34.00
$35.00-$45.00
14.
Homer Street
$18.00-31.00
$30.00-$40.00
15.
Alberni Street
$40.00-$100.00
$60.00-$110.00
1067 Robson Street, occupying 1,100 sq ft. This location,
along with a Whistler location that opened in December,
are their latest editions complimenting already existing
stores on South Granville and Metrotown in Burnaby.
Alberni Street
• Robson Street, one of the most desirable retail locations
in Vancouver, continues to attract new tenants despite its
constantly increasing lease rates, and low vacancy rates.
• American Apparel has leased two locations on Robson
Street, a 900 sq ft store at 1053 Robson and another
location at 1071 Robson of approximately 1,100 sq ft.
• The Vancouver based company TNA, a rapidly expanding
retailer and sister store to Aritzia, has opened their doors at
• Alberni Street, one block north of Robson Street is gearing
up to be the hot street to watch in 2008. The 1000 block,
anchored by Tiffany’s to the east and the new ShangriLa Hotel to the west will soon welcome Burberry, Ki
(high end asian-style dining), Urban Fare, and Boboli.
These restaurants and retailers will join Louis Vuitton,
Gucci, St. John, Lacoste, Salt Lik, and others in this
elite retail hub.
Metro Vancouver Retail Report Year End 2007
02
Metro Vancouver Retail Report
Year End Highlights 2007
Vancouver
3
8
2
6
5
7
Street Segment
Net Rental Rate
Range (psf ) ‘06
Net Rental Rate
Range (psf ) ‘07
1.
Kingsway
$10.00-$18.00
$15.00-$25.00
2.
Commercial Drive (3rd to Venables)
$15.00-$30.00
$15.00-$45.00
3.
Main Street (North of Broadway)
$10.00-$25.00
$15.00-$25.00
4.
Main Street (Broadway to 28th)
$15.00-$25.00
$15.00-$25.00
5.
West Broadway (Main to Cambie)
$10.00-$40.00
$25.00-$40.00
6.
West Broadway (Cambie to Alma)
$20.00-$35.00
$27.00-$55.00
7.
Granville Street (6th to 16th)
$40.00-$70.00
$40.00-$85.00
8.
West 4th Ave (Burrard to Balsam)
$25.00-$50.00
$30.00-$80.00
4
1
South Granville
Looking forward
• Upscale home furnishing chain WilliamSonoma Inc launched two new South
Granville retail stores In December
2007. They opened their first Vancouver
gourmet cookware store at 2903 Granville
Street, totaling 7,000 sq ft of retail
space, and Pottery Barn, a subsidiary
to William-Sonoma, expanded into
25,000 sq ft at 2600 Granville Street.
• After success in Alberta, the soap
retailer, Rocky Mountain Soap has
expanded into the BC market, opening
their doors at 3075 Granville Street.
• BC’s population reached an all time high
of 4.4 million in 2007. Steady growth is
forecast to continue into 2008, especially
with the 2010 Olympics on the horizon.
• Demand for retail space will continue
to remain strong, and with fewer new
developments, lease rates will continue
to rise with reduced inducements
being provided by landlords.
• Despite the optimism of the completion
of the Canada Line in the spring of 2009,
look for retailers along the Cambie
Street corridor to continue to struggle
through 2008 as heavy construction
continues to create a bottleneck in the
area. As the construction begins to
finish up around Broadway and Cambie
Street in 2008, expect new retailers
to fill the empty spaces in anticipation
of the completion of the line.
West 4th Avenue
• Book Warehouse relocated from the
2200 block into 2,800 sq ft at 2024
West 4th Avenue. Their previous
location was leased to Reitman’s.
• Mavi Jeans relocated from Yaletown,
and has occupied 1,200 sq ft at
2112 West 4th Ave. In addition
they also occupy two locations on
Granville Street and in Gastown.
Metro Vancouver Retail Report Year End 2007
03
Major Construction Update
No.
Project
Location
Description
Progress
1
Scott Road
Crossing
Surrey, Scott Road
and 80th Avenue
Approximately 110,700 sq ft of commercial
space that is already anchored by
Canadian Tire , Mark’s Work Wearhouse
and The Keg Steak House.
Phase 1 (80,700 sq ft) is complete
and phase 2 (30,000 sq ft) is planed
to finish late 2008 or early 2009.
2
Cloverdale
Crossing
Surrey, 64th Avenue
and 176 Street
The 104,300 sq ft shopping centre with London
Drugs and PriceSmart Foods as its anchor
tenants is now complete and fully leased.
Complete
3
Grandview
Corners
Surrey, 24th Avenue
and 160th Street
Approximately 800,000 sq ft of retail space.
Other main tenants will include Future
Shop , Wal-Mart and Home Depot
Wal-Mart will open July 30 2008 and
in Fall of 2008 another 165,000 sq ft
of space will be completed anchored
by Indigo and Golf Town. Future Shop
is planed to open in Winter 2009.
4
The Centre
of Newton
Surrey, 7272 and
7300 King George Highway
Phase 1 (80,000 sq ft) and phase 2 (20,000
sq ft) have been completed. Current
tenants are Save On Foods, Shoppers
Drug Mart, Blockbuster, Tim Horton’s
Completed November 2007
5
The Village at Langley, 200th Street
Thunderbird and 88th Avenue
Centre
A shopping centre consisting of over 183,000
sq ft of retail and office space, anchored by
Market Place IGA, Famous Players, Shoppers
Drug Mart, Vancity and Boston Pizza
Buildings G, H and I are still under
development, but the remainder
of the complex is up and running
with anchor tenants operating.
Significant Sales Transactions
Name & civic address
Municipality
Size (sq ft)
Central City - 13450 102nd Avenue
Surrey
1,187,300
La Collage - 1905 West 4th Avenue
Vancouver
Burlington Square 6540 Burlington Avenue, Unit 1 -3 5172 Kingsway
Sale Price
Price/sq ft
$245,750,000.00
$206.98
25,275
$10,500,000.00
$415.43
Burnaby
41,957
$7,300,000.00
$173.93
Guildford Towngate Shopping Center 15146 100th Ave, 15138 100th Ave, 9965 152nd St , 9989 152nd St
Surrey
35,300
$7,180,000.00
$203.40
2280 Holdom Avenue
Burnaby
27,000
$6,550,000.00
$242.59
3951 - 3975 Hastings Street
Burnaby
22,400
$5,840,000.00
$260.71
108 - 122 West 13th Street
North Vancouver
12,300
$5,000,000.00
$406.50
102 - 112 Kingsway, 246 - 264 East Broadway
Vancouver
10,000
$3,400,000.00
$340.00
Formerly operating as JJ Barnicke Vancouver Ltd., DTZ is one of the ‘big four’ global real estate
advisers operating across Europe, Asia Pacific, Americas, Middle East and Africa.
With a team of over 11,000 property professionals and a system operating across
140 cities in 45 countries, DTZ works with clients to provide innovative real estate,
capital markets and business solutions with extensive global reach.
DTZ Barnicke offers specialized resources and real estate expertise in dozens of strategic
sectors including, but not limited to: logistics and warehousing, manufacturing, data
and call centres, lease audit, life sciences, all levels of retail, and hospitality.
For more information, please contact:
Caroline Ungless
Adam Rabeda
Director of Research
Research Analyst
(604) 630 3405
(604) 630 3407
caroline.ungless@jjb.com
adam.rabeda@jjb.com
DTZ Barnicke
800 - 475 West Georgia Street, Vancouver, BC, V6B 4M9
Tel: (604) 684 7117 Fax: (604) 684 1017