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					                                                        C O L L I E R S I N T E R N AT I O N A L     |   M A R K E T R E P O RT


                                                        Greater Edmonton
                                                        R E TA I L   | T H I R D Q U A RT E R        |   2008

 MARKET INDICATORS
                                                        Edmonton’s Retail Market
                                Q2            Q3
                                                        ECONOMIC HIGHLIGHTS
         VACANCY
                                                        •   In August, Alberta’s seasonally adjusted unemployment rate was 3.5%, down from 3.6% in
                                                            the previous month. Alberta continues to have the lowest unemployment rate in Canada,
 CONSTRUCTION                                               well below the national average of 6.1%. Among Canadian cities, Edmonton’s unemployment
                                                            rate of 3.4% ranked second lowest (behind Victoria).

     RENTAL RATE                                        •   According to the Retail Trade Industry profile, published by the Province of Alberta,
                                                            approximately 16,491 retail jobs will be created from 2008 to 2012, representing an average
OPERATING COSTS
                                                            annual growth of 1.5%.

                                                        •   Edmonton will continue to be one of Canada’s fastest growing cities. For most of the
 EDMONTON INDICATORS                                        past 25 years, Edmonton’s population has grown at a rate above the national average rate.
 (Edmonton CMA) September 2008                              Representing a 6% increase from the 2005 municipal census, the 2008 municipal census
                                                            reported Edmonton’s population has reached 752,412. Over the next five years, the
 Population (Edmonton CMA)                                  population is forecast to grow by 9%.
 2005                          1,016,007
                                                        MARKET HIGHLIGHTS
 2006                          1,034,945
 2007                          1,041,940                •   Alberta retail construction prices per square foot are estimated at $175 - $190 for a
 2008f                         1,102,401                    multi-tenant building, $130 - $145 for big box warehouse retail space, and $165 - $175
                                                            for grocery/drugstore construction. These estimates include HVAC, electrical panel, and
 Labour Force                                               sewer.
 2006                              571,000
                                                        •   Edmonton has welcomed a number of notable retailers including Sephora, Apple Store,
 2007 (July)                       629,800
                                                            Sisley, Aéropostale, Coach, FatBurger, Hakim Optical, Bed Bath & Beyond with many more
 2008 (July)                       649,800                  under construction.

 Total Building Permits (YTD)                           •   Retailers are experiencing sharp rental rate increases as their current lease terms expire.
 2006 (Sept.)        $1,646,806,900                         In some cases, those not exercising their options to renew on time have lost their locations
 2007 (Sept.)        $1,793,559,000                         as landlords push to strengthen tenant mixes within their retail centres. Security of the
                                                            lease has become a factor. As landlords are challenged when re-financing their existing
 2008 (Sept.)        $2,019,644,300
                                                            mortgages; we expect a push for larger deposits and increased security behind renewals
                                                            and new leases.
 Average Residential
 Selling Price                                          •   New retail developments should ease the burden of finding available space; however,
 (Single Family Dwelling)                                   higher land servicing and construction costs have pushed rental rates to a level where a
 2005 (Sept.)                   $216,490                    smaller number of retailers are able to expand, build and operate with comfortable profit
                                                            levels. With a slowdown of residential development, we predict a slowdown in new retail
 2006 (Sept.)                   $322,077
                                                            development.
 2007 (Sept.)                   $399,555
 2008 (Sept.)                   $362,097                •   Retailers continue to report profits while
                 Source: Conference Board of Canada
                                                            operating within the Greater Edmonton areas.
                                    Statistics Canada
                         Edmonton Real Estate Board
                                                            We are seeing increased retail expansion into
                                                            smaller surrounding communities.


 www.colliers.com/edmonton
Greater Edmonton Report | Third Quarter | 2008 | Retail



RETAIL DEFINITIONS                                                        Q3 - 2008 RENTAL RATES & OPERATING COSTS
CRU - Commercial
Retail Unit                                                               CENTRE TYPE                                       RENTAL                        OPERATING
                                                                                                                             RATES                          COSTS
Generally part of an existing multi tenant building. May be                                                                ($/SQ.FT.)                      ($/SQ.FT.)
located in any type of shopping centre.                                                                         EXISTING               NEW SPACE
                                                                                                                 SPACE
Power Centre                                                              Power Centre                                                                    $5.50 - $7.00
Shopping Centre consisting mainly of dominant “box”
                                                                             Pad                                         $30.00 - $40.00
retailers in the markets they serve. (i.e. South Edmonton
Common - IKEA, Wal-Mart, Tim Horton’s, Home Depot, etc.)                     Anchor                                      $22.00 - $25.00

                                                                             Smaller Anchor                              $24.00 - $28.00
Shopping Centre
                                                                             CRU (under 1,500 Sq. Ft.)                       $30.00
A group of retail facilities in one complex anchored by a
grocery store. There are many different types of shopping                    CRU ( 3,000 - 5,000 Sq. Ft.)                $20.00 - $23.00

centres suited to cater to the type of community they are                 Shopping Centre                                                                 $8.50 - $10.50
located in.                                                                  Pad                              $25.00 - $30.00     $32.00 - $40.00

                                                                             CRU                              $23.00 - $28.00     $30.00 - $35.00
Strip Centre
A shopping complex containing a row of various stores,                       Anchor                           $15.00 - $18.00     $22.00 - $25.00
businesses, and restaurants that usually open onto a                      Strip Centre                                                                    $7.00 - $8.50
common parking lot. No major anchor tenant. (Anchor can
                                                                             CRU                              $25.00 - $30.00     $35.00 - $40.00
be defined as grocery store, drugstore, or dominant “box”
retailer.)                                                                   Pad                              $20.00 - $25.00     $30.00 - $35.00



Q3 - 2008 NOTABLE SALE TRANSACTIONS

2007 NOTABLE SALE TRANSACTIONS
LAND SALE ACTIVITY
PROPERTY ADDRESS                               SUBDIVISION                ZONING        SITE AREA           SALE PRICE          UNIT PRICE                SALE DATE
                                                                                         (ACRES)                                 ($/ACRE)
5003 - 55 Avenue
5304 - 50 Street                                  Roper                    CSC             17.12             $13,475,000                $787,091           July 2008
5104 - 50 Street
931 Parsons Road                                  Ellerslie                CSC              7.78              $5,422,348                $696,960           July 2008

10430 - 61 Avenue                                Allendale                 CB2              4.97              $5,300,000               $1,066,398        February 2008

110 Town Crest Road                          Fort Saskatchewan              C3              4.15              $3,413,113                $822,437         January 2008

Hebert Road & Arlington Drive                    St. Albert                 CC              1.95              $1,950,000               $1,000,000         April 2008

102 Southfork Drive                                Leduc                    C2              1.60              $1,300,000                $812,500           July 2008

770 St. Albert Road                              St. Albert                 CC              1.58              $1,536,975                $972,769         January 2008

12518 - 97 Street                               Lauderdale                 DC2              1.40              $1,000,000                $714,286         August 2008

BUILDING SALE ACTIVITY
PROPERTY NAME                    SUBDIVISION               ANCHOR         BUILDING       CAP RATE        SITE AREA       SALE PRICE        UNIT PRICE        SALE DATE
& ADDRESS                                                                   AREA           (%)            (ACRES)                           ($/SQ.FT.)
                                                                           (SQ.FT.)
The Meadowlark Health &         Meadowlark Park        Zellers, Safeway    301,175         5.80%            23.02        $75,750,000          $252            May 2008
Shopping Centre
1 Meadowlark Park
Westlawn Square                    Glenwood              Tim Hortons       14,102          7.44%             1.15         $3,300,000          $234            July 2008
10044/70 - 163 Street
Clareview Plaza                    Kennedale            Midas Muffler      10,788          6.48%             0.96         $2,600,000          $241           June 2008
13010 - 50 Street
108th Avenue Plaza                 McCauley                   N/A          10,050          7.89%             0.46         $1,810,000          $180            May 2008
10815 - 95 Street
Olive Plaza                          Stone                    N/A          22,580          6.55%             1.95         $7,500,000          $332            May 2008
17270 Stony Plain Road


2    COLLIERS INTERNATIONAL
                                                                                                                    Greater Edmonton Report | Third Quarter | 2008 | Retail




 RESTAURANT UPDATES                                                                                                   BRIEF LOOK AT EDMONTON RETAIL CORRIDORS - VACANCY

 Original Joe’s                                                                                                        CENTRE TYPE /                       GLA               AVAILABLE           AVAILABILITY
 • Ellerslie Road in South Edmonton                                                                                    CORRIDOR                          (SQ.FT.)              SPACE                 RATE
                                                                                                                                                                              (SQ.FT.)                (%)
   9246 Ellerslie Road
                                                                                                                       POWER CENTRE
 • Varsity Centre (Whyte Avenue District)
   8408 – 109 Street                                                                                                   North East Edmonton                106,792                    0                  0.00%
                                                                                                                       North East Edmonton                227,000                 2,388                 1.05%
 Hudson’s Taphouse                                                                                                     North Edmonton                     400,000                    0                  0.00%
 • Bourbon Street, West Edmonton Mall
                                                                                                                       North Edmonton                     230,000                23,000                10.00%
   1164, 8882 – 170 Street
                                                                                                                       North West Edmonton                110,564                    0                  0.00%

 Ric’s Grill                                                                                                           North West Edmonton                325,411                    0                  0.00%
 • West Pointe North                                                                                                   South East Edmonton                489,738                 8,550                 1.75%
   17220 – 100 Avenue
                                                                                                                       South Edmonton                     979,816                    0                  0.00%

 New Asian Village                                                                                                     West Edmonton                      444,263                19,842                 4.47%
 • Manning Crossing                                                                                                    West Edmonton                      257,218                    0                  0.00%
   320 Manning Crossing                                                                                                West Edmonton                      250,000                60,000                24.00%
                                                                                                                       West Edmonton                      160,000                 3,000                 1.88%
 Joey Tomatoes
 • Mayfield Common                                                                                                     West Edmonton                       79,628                 3,229                 4.06%
   130 Mayfield Common                                                                                                 ENCLOSED MALLS
                                                                                                                       South East Edmonton                490,012                63,897                13.04%
 Taco Del Mar
                                                                                                                       Central Edmonton                   815,768                26,986                 3.31%
 • Multiple Edmonton and small market
   communities                                                                                                         Central Edmonton                   930,989                38,329                 4.12%
                                                                                                                       North East Edmonton                757,200                 3,935                 0.52%
                                                                                                                       North Edmonton                     512,100                 7,134                 1.39%
GREATER EDMONTON
RETAIL DISTRICTS                                                                                                       South Edmonton                     826,469                 4,000                 0.48%
North East
North West                                                                                                             West Edmonton                     3,800,000               38,000                 1.00%
South West
South East                                                                                                             North West Edmonton                533,000                13,809                 2.59%
Downtown                                                                                                               STRIP CENTRES
                                                             ATHONY HENDAY DRIVE


                                                                                                                       South Edmonton                      22,586                    0                  0.00%

                                                                                             NORTH EAST
                                                                                                                       South Edmonton                      32,500                    0                  0.00%
                                                                                                                       South East Edmonton                 46,000                 2,982                 6.48%
                                                                                                                       South East Edmonton                 33,216                 5,000                15.05%
                                                                                                                       East Edmonton                       31,135                    0                  0.00%
                                                                                                                       North West Edmonton                 65,267                13,480                20.65%
             ATHONY HENDAY DRIVE




                                   NORTH WEST
                                                         DOWNTOWN
                                                                                                                       SHOPPING CENTRES
                                                                                                                       North East Edmonton                 82,000                 2,318                 2.83%
                                                                                                                       North East Edmonton                 64,525                 2,730                 4.23%
                                                                                                                       North West Edmonton                 89,000                    0                  0.00%
                                                                                                                       South West Edmonton                136,291                    0                  0.00%
                                                                                    SOUTH EAST
                                            SOUTH WEST                                                                 West Edmonton                      149,460                 7,136                 4.77%
                                                                       ATHONY HENDAY DRIVE


                                                                                                                       South West Edmonton                 86,264                 2,127                 2.47%
                                                                                                                       Whyte Avenue                        63,024                 6,227                 9.88%

                                                                                                                    This table does not represent all available properties within the market, but rather a
                                                                                                                    representative sample of different properties within each corridor.
                                                                                                = Completion 2011




                                                                                                                                                                    COLLIERS INTERNATIONAL                      3
Greater Edmonton Report | Third Quarter | 2008 | Retail



                                                                                                         293 OFFICES IN 61 COUNTRIES ON
                                 THE RIGHT MOVES - FALL 2008 ...                                         6 CONTINENTS
                                                                                                           136 Americas
                                                                                                              99 United States
                                      ... Colliers’ newest retail publication,                                19 Canada
                                                                                                              18 Latin America
                                      showcasing Edmonton’s premier                                        95 Europe, Middle East & Africa
                                                                                                           62 Asia Pacific
                                      retail listings
                                                                                                         $2.0 billion in annual revenue
                                                                 View a digital copy at:                 868 million square feet under management
                                                            www.colliers.com/edmonton                    11,000 professionals

                                                                 or to obtain a hard copy:               CONTACT INFORMATION
                                                                        Call 780.420.1585
                                                                                                         RETAIL TEAM:
                                                                                                         Cam Picketts
                                                                                                         cam.picketts@colliers.com
CURRENTS OF WINDERMERE                                                                                   Casey McClelland
170 Street & Windermere Blvd. Edmonton                                                                   casey.mcclelland@colliers.com
                        “Putting a little city in the suburbs”                                           Kelly Horwood
                                                                                                         kelly.horwood@colliers.com
The Currents of Windermere is an exciting new development in southwest Edmonton.
With over 650 acres of total land assembly and a primary trade population expected to                    Eric Slatter
hit 100,000 by 2010, this is one of the fastest growing markets in Canada. Retailers located             eric.slatter@colliers.com
in the development will include; Future Shop, Petsmart, The Brick, Linens & Things, Best                 Larry Guilbault
Buy, Home Depot, Wal-Mart, Shoppers Drug Mart, London Drugs, Canadian Tire, Movie                        larry.guilbault@colliers.com
Theatre, La Senza, Le Chateau, and many major financial institutions such as TD, RBC,                    Ashley Thurstan
HSBC, Scotiabank, ATB, and CIBC. The total size of the development is 1.1 million square                 ashley.thurstan@colliers.com
feet of commercial space.
                                                                                                         RESEARCH:
While the secondary trade area consists of 525,000 shoppers (within a 20 minute drive                    Tara English
time), the residential growth in this area makes up for 60% of all residential growth occurring          Research
in the South side of Edmonton, and the population is expected to increase drastically once               tara.english@colliers.com
residential developments in the area are completed. Average household income in the area
                                                                                                         MARKETING:
surrounding is $133, 153.00, almost double the average household income for Alberta                      Ursula Boraas, LGDC
($76,840).                                                                                               Marketing Coordinator
                                                                                                         ursula.boraas@colliers.com
This area features a box perimeter (Big “Box” stores such as Wal-Mart and Safeway located
                                                                                                         Shereen Ali
outside of the direct centre of the development), and the interior of the site named the
                                                                                                         Marketing Assistant
“Urban Village” consists of smaller CRU (Commercial Retail Unit) tenants and baby anchors.               shereen.ali@colliers.com
The interior of this site has a strong fashion and restaurant component, and the developers
quote that it is “Inspired by the great meeting places of the world”                                     Alina Pete
                                                                  Source: http://currentswindermere.ca   Marketing/Administrative Assistant
                                                                                                         alina.pete@colliers.com

                                                                                                         3555 Manulife Place, 10180 - 101 Street
                                                                                                         Edmonton, AB T5J 3S4
                                                                                                         Telephone 780.420.1585
                                                                                                         Fax 780.424.7830
                                                                                                         This report and other research materials may be found on our website at www.
                                                                                                         colliers.com. Questions related to information herein should be directed to the
                                                                                                         Research Department at the number indicated above. This document has been
                                                                                                         prepared by Colliers International for advertising and general information only.
                                                                                                         Colliers International makes no guarantees, representations or warranties of any
                                                                                                         kind, expressed or implied, regarding the information including, but not limited
                                                                                                         to, warranties of content, accuracy and reliability. Any interested party should
                                                                                                         undertake their own inquiries as to the accuracy of the information. Colliers
                                                                                                         International excludes unequivocally all inferred or implied terms, conditions
                                                                                                         and warranties arising out of this document and excludes all liability for loss and
                                                                                                         damages arising there from. Colliers International is a worldwide affiliation of
                                                                                                         independently owned and operated companies.




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