Saskatchewan #CRE retail trends you need to know

Retail continues to play a stabilizing role in Regina and Saskatoon commercial real estate. The office vacancy has hovered in the double digits for the last 3 – 4 years while the industrial sector witnessed a 3% increase in vacancy in 2015 in both cities.

Here’s a synopsis of the presentation by one of ICR’s partners, Linely Schaefer made as Moderator on the retail panel last week at the Saskatchewan Real Estate Forum.

 

Population growth has the most immediate effect on the retail sector:

 

It’s interesting to see how our provincial GDP parallels retail sales so closely:

 

Retail continues to be the shining star across the country:

 

Whereas the size of the office and industrial sectors vary significantly between the two cities, there is far less difference in the measured total footprint of retail space:

 

Although in recent years the vacancy rate has stayed under that balanced market number of 5%, the pressure that e-commerce is placing upon merchants will continue to impact their bricks and mortar stores:

 

Again a comparison of GDP alongside absorption:

 

It’s interesting to see the amount of new development on the horizon of both cities:

 

Some existing retail corridors have experienced a softening in net rental rates as they try and compete with the abundance of new inventory available. It’s interesting however that there has been an upward trend in new development rates from $35.00 in Regina to $38.00 in Saskatoon.

Posted by Barry Stuart

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