The Retail Council of Canada (RCC) reports that Canadian shopping centres continue to see a positive trend. Since 2010, the overall annual sales per square foot for a non-anchor tenant in Canada has increased, while the United States has seen a minor decrease year over year since 2015.
The data reported in the Canadian Shopping Centre Study was collected from shopping centres with a gross leasable area (GLA) exceeding 300,000. The Study displays the top shopping centres, based on their annual sales per square foot and their annual visitor counts,
CF Toronto Eaton Centre continues to be the busiest shopping centre in North America with 53.7 million annual visitors. This shopping center is busier than the top two shopping centers in the U.S.; Ala Moana Center in Honolulu and the massive Mall of America in Minneapolis. Both of these U.S. centers have 10-times the population of Canada and Ala Moana draws a significant amount of Asian tourist visitors; however, Canada still leads in attracting 53.7 million annual visitors to CF Toronto Eaton Centre.
Similar to the U.S. malls, many Canadian malls also cite that many of their visitors are from out-of-town. Further, the Study revealed that the top productive malls in Canada have a common tenant, Apple. Apple is the world’s top retailer, and has consistently brought in the top sales per square foot at $5,546.
Another key to having a productive shopping centre is the transit accessibility. Rapid transit lines served many of the top busiest retail properties in the Study, especially if they are located in the major cities. The top busiest retail suburban centres all have ample parking and a bus stop nearby. Thus, transit accessibility is key to a shopping centre’s success.
The results favors Canada retail as a good investment
The reason why investors like Canadian retail over U.S. retail; includes,
- Canadian shopping centres for the last 9 years have a positive trend in annual sales per square foot
- $1905 in annual sales per square foot by Toronto’s Yorkdale Shopping Centre
- $1000 in annual sales per square foot by Conestoga Mall in Waterloo, Ontario.
This the first shopping centre to reach this level of sales and it is not located in a major market
- Canada currently has 12 shopping centres boasting annual sales exceeding $1000.
- 3 years in a row of attracting millions in investments
- Investments are focused on expansion, renovations and creating gathering spaces or community hubs for consumers to enjoy.
- The U.S. has 23.5 square feet of shopping centre space per capita (GLA) versus Canada’s 16.4 square feet per person. Investors like the fact that Canada retail market is less saturated than U.S. and the overall confidence is higher in regards to Canada’s economic climate.
These are some of the reason why investors like Canadian retail over U.S. retail.
Over the past few years, the top malls and retail centres in Canada continue to outperform their U.S. counterparts. Canada’s top malls have received millions in investments and it is forecasted that the investment commitment and positive sales trend is expected to continue.
Now is a good time to invest in Canada retail. ReDev Properties is diversified across high-quality growth retail assets throughout the major Canadian markets. We have purchased and managed numerous Canadian commercial real estate properties in Ontario, British Columbia, Alberta and others. Contact us today to begin investing in commercial real estate properties in Canada.