Rapid Retail Plaza Closing Shows Strength Of Canadian Retail In 2017
Canada retail sales remains strong in 2017. The recent rapid sale of a Canadian retail shopping plaza highlights just how strong demand still is in this sector. Investors want a well located and well managed shopping plaza with competent asset management, generally proves to be exactly what the market desires.
ReDev Properties just closed the sale of the Daly Grove Centre in Edmonton. Closed in just 30 days, the transaction could be a record breaker for a commercial property. The property combines 33,000 square feet of office and retail space, and was fully leased at the time of the sale. The deal was a testament to both the firm’s expertise, and the strength of the market.
RENX (the Real Estate News Exchange) notes that although retail is certainly changing, it is still strong in Canada. Target and Sears may have failed, but local shopping plazas seem to be doing an excellent job at reinventing themselves as the social heart of communities, which are blending clicks and bricks, and entertainment. Various shop sizes with unique brands may be bigger winners than those in the past few years in some markets, but Canadians haven’t stopped going out shopping yet. In fact, Canada has some of the lowest rates of online shopping versus physical retail.
We are also facing new times when Canadian real estate may be even more in demand. There has been as recent surge in immigration. There are ever heightening fears of a major stock market correction, and the recent record setting storm and natural disaster activity in the US and Central America is forcing many to rethink their investments and retirement plans. There is both a need for new homes, offices, retail space and investments. This could bring in billions more in investment capital as well as increased consumer spending.
Canada may also be successful in landing Amazon’s second international headquarters HQ2. That would not only increase demand for commercial space in multiple Canadian cities, but also draw more talent and investment seeking to benefit from Canada as a new tech powerhouse.
Canadian retail maybe changing, but it appears to be changing for the better. The market is still strong, leasing rates are strong and there is a healthy appetite for good retail properties. As asset management and retailers get better at curating properties as community hubs, their value is only likely to rise. Even more so, if Amazon makes Canada its second home.