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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
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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
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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
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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
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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
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RETAIL TRENDSRETAIL TRENDS
Changing Prototypes for major retailers
• Retailers are able to enter smaller markets by creating new store prototypes.
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SPRUCE GROVE SPRUCE GROVE –– HOME DEPOTHOME DEPOTSMALL MARKET PROTOTYPESMALL MARKET PROTOTYPE
100,000 sq.ft. to 60,000 sq.ft.
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STAPLES STAPLES –– NEW PROTOTYPESNEW PROTOTYPES
20,000 sq.ft. – Urban Markets15,000 sq.ft. – Secondary Markets5,000 – 12,000 sq.ft. – Downtown Markets
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NEW RETAIL FORMATSNEW RETAIL FORMATS
• Lifestyle Centres
• New Downtown Retail
• Urban Villages
• Evolution of Power Centres
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LIFESTYLE CENTRE
PARK ROYAL, VANCOUVERPARK ROYAL, VANCOUVER
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CONTINUED GROWTH OF RETAIL CONTINUED GROWTH OF RETAIL DOWNTOWNDOWNTOWN
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URBAN VILLAGEURBAN VILLAGE
CenturyCentury ParkPark
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South Edmonton CommonSouth Edmonton Common
THE EVOLUTION OF THE THE EVOLUTION OF THE POWER CENTREPOWER CENTRE