The Canadian Retail Real Estate Market Overview Presented for: - - PowerPoint PPT Presentation
The Canadian Retail Real Estate Market Overview Presented for: Toronto Real Estate Forum 2013 Presented by: John G. Crombie, National Retail Director Cushman & Wakefield Ltd. john.crombie@ca.cushwake.com (416) 756-5448 December 5, 2013
The Canadian Retail Real Estate Market Overview
Presented for:
Toronto Real Estate Forum 2013
Presented by: John G. Crombie, National Retail Director Cushman & Wakefield Ltd. john.crombie@ca.cushwake.com (416) 756-5448 December 5, 2013
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In 2012, retailers sold an estimated
worth of goods and services
Basic Facts
FOOD & BEVERAGE SALES IN CANADA Record high sales of food & beverage in 2012 with $104.3 billion EMPLOYMENT Retail sector is Canada’s largest employer. 12.5% of Canadian jobs RETAIL SPACE IN CANADA 513 million SF of Shopping Centres (average size – 186,000 SF) 169 million SF of Power Centres (average size – 323,000 SF) 236 power node (Power Centres plus nearby Shopping Centres). Almost 40% located in Ontario RETAILERS IN CANADA Top 100 Retailers in Canada control over 70% of the market share 50% of Canada’s leading retailers are foreign owned and operated (largely US) Top 5 Foreign Owned Retailers in Canada control 19% of total retail sales (1,423 stores) » Wal-Mart, Costco, Safeway, Hudson ‘s Bay & Home Depot
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Source: J.C. Williams/ICSC
20 40 60 80 100 120 20 40 60 80 100 120
Jan-05 Apr-05 Jul-05
Apr-12 Jul-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13
US CCI Index (1985 =100) CDN CCI Index (2002=100)
Canada U.S.
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Seasonally Adjusted
Source: Statistics Canada
$25 $30 $35 $40 $45
Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13
(billions) Retail Sales are Going Up … but Retailer ‘s Margins are Going Down
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Growth Rate, year over year
5 10 15 20 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Teranet/National Bank Home Price Index Retail Spending %
Source: The Globe & Mail/Bloomberg
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Eastern Canada 7.4% Quebec 22.1%
Ontario 35.1%
Western Canada 35.1% Northern Canada 0.4% Toronto CMA = 16.0%
Source: Statistic Canada
92.3% of Sales are in Western & Central Canada
Manitoba = 3.6% Saskatchewan = 3.7% Alberta = 14.7% British Columbia = 13.1% Yukon = 0.1% Northwest Territories = 0.2% Nunavut = 0.1% Nfld & Labrador = 1.8% PEI = 0.4% Nova Scotia = 2.8% New Brunswick = 2.4%
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Source: ICSC Research
Approximately $601 PSF
$400 $450 $500 $550 $600 $650 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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By Province - 3Q 2013
Source: ICSC Research
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$320 $340 $360 $380 $400 $420 $440 $460 $480 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: ICSC Research
Approximately $466 PSF
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American Retailers European Retailers
Source: Cushman & Wakefield 2013
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Source: Ryerson University CSCA
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Omni-Channel Strategies
QR CODE-DRIVEN VIRTUAL SUPERMARKETS (South Korea Subway Stations)
BRICK & MORTAR MOBILE
AMAZON.COM STORE
BRICK & MORTAR INTERNET
POP-UP STORE
BRICK & MORTAR SOCIAL MEDIA
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2012 vs. 2013 (Street Level)
City Submarket 2012 Average Net Rent ($/sq.ft.) 2013 Average Net Rent ($/sq.ft.) Vancouver Robson Street $220 $215 Calgary 17th Avenue SW $45 $50 Edmonton Whyte Avenue $45 $45 Montreal Saint-Catherine West (street level) $180 $190 Ottawa Sussex Drive $50 $50 Toronto Bloor Street $320 $320 Toronto Queen Street $100 $110
Source: Cushman & Wakefield 2013
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2007 2012
Source: CSCA, 2013 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Power Centre Super Regional Regional Community Neighbourhood Strip Vacancy Rate 2007 Vacancy Rate 2009 Vacancy Rate 2012
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This report contains information available to the public and has been relied upon by Cushman & Wakefield on the basis that it is accurate and complete. Cushman & Wakefield accepts no responsibility if this should prove not to be the case. No warranty
information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. Cushman & Wakefield Ltd. 2013