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0Cushman & Wakefield | Calgary | 2018

CALGARYCushman & Wakefield

Global Cities Retail Guide


Calgary has evolved into a home of luxury retailers, world class restaurants and one of Canada’s premier shopping destinations.Built on the strength of the energy sector and entrepreneurial community, Calgary will have one of the highest GDP growth rates and labour force participation rates of the major cities in Canada in 2018. Over the past 10 years the city has had the highest population growth of major cities in Canada, with 64% of these new migrants arriving from international destinations.

Calgary’s GDP is expected to grow 1.8% in 2019 with retail sales anticipated to gain 2.4%. Calgarians are among the top earners in Canada and with a higher level of disposable income, the luxury retail market has thrived; gaining international attention from retailers looking to expand into Canada. Fifty International brands entered Canada in 2017 including Nordstrom Rack and Saks Fifth Avenue; both of which have opened locations in Calgary as it is the major urban centre for the entire southern half of the province of Alberta.

The CORE remains one of the busiest shopping centres in the city but despite this pedestrian traffic, Calgary’s luxury retail is largely located in malls located outside of the downtown area such as Chinook Centre and Market Mall which are more easily accessible. Late in 2018, Paris-based luxury fashion retailer Louis Vuitton opened its first standalone store in Chinook Centre covering 4,450 square feet; and closed its concession at Holt Renfrew in Calgary’s CORE. Chinook Centre sees approximately 14 million visitors annually which is less than the CORE; largely due to the fact that the mall has a customer driven base compared to the downtown office base.

Chinook Shopping Centre features several luxury retailers and has positioned itself as the hub for luxury in Calgary including Tiffany & Co., Burberry, Harry Rosen, Saks Fifth Avenue and Calgary’s only Canada Goose. Saks Fifth Avenue (Chinook Centre) and Nordstrom Rack (Deerfoot Meadows) were also new location openings in 2018.

The influx of U.S. chains and luxury brands into Western Canada has pushed lease rates higher, however Calgary rates remain attractive compared to other cities around the world.

CALGARYOVERVIEW


STEPHEN AVENUESome refer to Calgary’s pedestrian walkway mall as the heart of the downtown core, featuring fine dining, art galleries, cafes, entertainment venues, pubs and retail shops. The street walkway spans from 1st Street SE to 4th Street SW and contains a high concentration of registered historic buildings; the street itself was declared a Canadian historic site in 2002. A pedestrian only street between 6am and 6pm, nestled in the middle of the downtown office district, the walkway enjoys high pedestrian traffic attracting up to 10,000 people per hour comprised of tourists and downtown business people alike.

CALGARY KEY RETAIL STREETS & AREAS

17TH AVENUEOtherwise know as Calgary’s Red Mile, located on the edge of Calgary’s Beltline district, 17th Avenue provides lounges, cafes, fine-dining, retail shops and downtown nightlife. With over 400 unique stores spanning between 2nd Street and 14th Street SW, 17TH Avenue is a popular destination for locals and tourists.

MARDA LOOPMarda Loop is a Business Revitalization Zone in Calgary, centered on 33rd and 34th Avenue shopping district in SW Calgary. The trendy area has over 130 walkable street level small-scale retailers, shops, boutiques and restaurants. The area has seen substantial redevelopment in the last 10 years and an increase in housing density. The area is best known for the annual Marda Gras Festival every August.

KENSINGTONIncluding Kensington Road and 10th Street NW, the urban village of Kensington has over 250 unique shops, restaurants and services. The neighborhood is centrally located immediately north of downtown and the Bow River. Just off the Bow River pathway, the area is ultra-pedestrian friendly with street level retail, dining, coffee shops and pubs. Several new residential developments have been completed in the past few years.

MISSIONIn the Beltline between historic sites and new urban development, resides the inner neighborhood of Mission. Mission is known for its retail stretch along 4th Street, which connects to the Red Mile. This inner neighborhood provides trendy shops and dining for the local business district and the Beltline community. The street hosts the annual Lilac Festival each June, displaying over 500 vendors and attracting over 100,000 attendees.


CALGARY MARKET OVERVIEW

KEY AREAS / STREETS/SHOPPING CENTERS

CONSUMER PROFILE

MAJOR RETAILERS PRESENT TYPICAL RENT FOR UNIT OF 2,000 SQFT

RANGE OF UNIT SIZES

Stephen Avenue(8th Avenue – 1st St SE to 4th St SW)

Downtown Business District, Tourists, Local Shoppers.

The Wednesday Room, Cactus Club, Earls, Winners, John Fluevog Shoes, Lammle’s Western.

$30 - $45 / psf 800 – 10,000 sf

17th Avenue (17th Avenue – 2nd St to 14th St SW)

Local Business District, Tourists, Local Residential Shoppers.

Arc’teryx, Ethos Bridal, Frank and Oak, Gravity Pope, IQOS Boutique, Kit and Ace, Leo Boutique, Less17, Presotea, Purr, Reid’s Stationary, Roots, Rubaiyat, Sage, West Elm.

$40 - $50 / psf 800 – 5,000 sf

Mission(4th street –17th Avenue to 26th Avenue SW)

Local Business District, Local Residential Shoppers.

Coco and Violet, Fieldstudy, lululemon, Phil & Sebastian, Purple Perk, Roxboro, Safeway, Starbucks.

$40 - $50 / psf 800 – 2,000 sf

Marda Loop(33rd Avenue – 18th St to 22nd St SW)

Local Business District, Local Residential Shoppers.

Blush Lane Organic Market, Frilly Lilly, Highlander Wine, Orangetheroy Fitness, Phil & Sebastian, Village Ice Cream, Safeway, Springbank Cheese Co.

$50 - $60 / psf 800 – 5,000 sf

Kensington(Kensington Road and 10th St NW)

Downtown and Local Business District, Tourists, Local Residential Shoppers.

Brooklyn Clothing Company, Espresso Café, James & Dickson Clothiers, Kensington Wine, Livingstone Cavell Extraordinary Toys, Manana Imports and Gifts, Orangetheory Fitness, Peasant Cheese Shop, Purr, Ridley’s Cycle, Safeway.

$35 - $45 / psf 800 - 3,000 sf


SOUTHCENTRE MALLIn the south neighborhood of Willow Park and 25 minutes from downtown, the Southcentre Mall provides 190 stores in 1.1 million square feet on two floors and is anchored by Hudson’s Bay, Safeway, and the new Sporting Life. The Mall is accessible from two major roads and the Calgary LTR transit system, providing retail and services to southern Calgary and 6.7 million people annually.

CF CHINOOK CENTRE At 1.4 million square feet and expanding, Chinook Centre is the largest shopping mall in the city. The centre is 5 km south of downtown and accessible by two major roads and the Calgary LRT transit system. It offers a range of mid-priced to higher end retail on two floors and houses approximately 250 retail stores and restaurants, a cineplex and bowling alley. The three major anchor stores are Hudson Bay, Nordstrom and Saks Fifth Avenue, in addition to Sport Chek, H&M and Old Navy. The mall saw $1,081 in sales per square foot in 2018, ranking it 7th

amongst the top 30 malls in Canada in terms of sales productivity.

CALGARY SHOPPING CENTRES

CF MARKET MALLMarket Mall provides retail shopping to Calgary’s Northwest with 800,000 square feet of space and 186 shops on one floor. It is accessible by Shaganappi Trail and is located near the University. In 2018 the mall produced sales of $899 per square foot. Recent renovations have added Sporting Life, Zara, and Saks OFF 5TH .

THE CORE The Core Shopping Centre is at the hub of Calgary’s downtown business district and the center of the +15 skywalk system (connecting the downtown office towers). Covering three city blocks, the Core provides 160 retail shops on four levels and 700,000 square feet of space. Bounded by the 8th Avenue Stephen Avenue Pedestrian Mall and the 7th Avenue Calgary LRT transit system, the Core sees some of the highest pedestrian traffic in Canada and is the busiest in Calgary. The shopping centre serves mid to high-end luxury goods to tourists and the workers within the local business district.

DEERFOOT MEADOWS SE Deerfoot Meadows is one of Calgary’s largest urban shopping hubs. It opened in 2005 and is located on Queen Elizabeth II Highway (Deerfoot Trail and Heritage Drive South). The area includes restaurants, hotels, auto dealers and over 50 stores in one destination. Major anchors include Ikea, Costco, the Real Canadian Superstore, Walmart and, as of 2018, Nordstrom Rack and Ethan Allen. Conveniently located off Deerfoot Trail more than 121,000 vehicles pass by the area daily.


Canada’s Cowtown is the largest beef producer and the third largest exporter of agri-food products in Canada… however the dining scene has advanced beyond its beef roots. Calgary has had the highest population growth over the past 10 years of major cities in Canada and with 64% of new migrants arriving from international destinations, the offering of food services has flourished. With 41 international consulate offices in Calgary, the diverse culture base has created a restaurant culture which rivals any other major Canadian metropolis.

Over 70 new eateries have opened across the city in last few years. The majority of these are new restaurants, while others are existing favorites that have opened additional locations.

CALGARYFOOD & BEVERAGE

Nationally recognized in Canada’s 100 Best Restaurants 2018, there were five Calgary restaurants in the top 50 and an additional six in the top 100. The top three ranked in Calgary were:

• #28. River Café. Located in the heart of downtown on Prince’s Island Park, the café has been providing seasonal rural Canadian cuisine with local ingredients for over 27 years.

• #30 Ten Foot Henry. Located in the trendy Beltline area, on the edge of Victoria Park and Central Connaught, Ten Foot Henry was launched in 2016, combining family-style service and vegetable-forward cuisine.

• #35 Shokunin. Launched in 2015 in the Beltline neighborhood of Mission, Shokunin was launched in 2015 providing Japanese cuisine with an intense focus on seasonality and commitment to the culinary tradition.


CALGARYFOOD & BEVERAGE

The oil and gas downturn has provided ex industry employees an opportunity to embrace the Calgary entrepreneurial spirit and purse dreams and new ventures. Calgary’s craft brewery scene has grown rapidly in the past 5 years supported by Alberta’s Small Brewers Association. Currently there are over 40 breweries operating in Calgary; seven were established in 2017 and fifteen in 2018.

Cold Garden Beverage Company. A Calgary based microbrewery launched early in 2017 in the community of Inglewood. Brewer trained at Brewlab in the United Kingdom.

Zero Issue Brewing. Officially launched in the summer of 2017 serving Nemesis IPA, Dystopia White IPA and Multiverse Pale Ale. Created by brothers, Mark and Kirk, bringing a comic book and sci-fi theme.

Annex Ale Project. Opened in the spring 2017 in South Calgary in the area of Manchester by the ex head brewer of Village Brewery.

Eighty-Eight Brewing Co. 2018 in Ramsay. Inspired by 1980’s themes and in honour of Calgary’s stint as the host of the 1988 Winter Olympics.

Elite Brewing & Cidery 2018 in Crescent Heights. Focused around military history.

Marda Loop Brewing Co. 2018. Community based craft brewery in the heart of Marda Loop.

Ol’ Beautiful Brewing Co. 2018 in Ramsay next to Cold Garden.

Revival Brewcade 2018 in Inglewood. Combining the brewery, bar, and arcade all in one.


FOOD & BEVERAGE MARKET OVERVIEWCALGARY

KEY AREAS CONSUMER PROFILE

FOOD & BEVERAGE OPERATORS INCLUDING RENT FOR 3,500 SQFT UNIT

Stephen Avenue

Downtown Business Density, Tourists, Secondary Retail

Bar Annabelle, Bank & Baron, Blink Restaurant & Bar, Cactus Club Café, Derrick Gin Mill & Kitchen, Earls, El Furniture Warehouse, The Guild, James Joyce, Local, Metropolitan, Milestones, Murrieta’s West Coast Bar & Grill, Original Joe’s, SALTLIK, State & Main, Unicorn, Champagne Lounge, The Wednesday Room.

$30 - $45 / psf

17th Avenue

Local Business Density, Local Residential Population, Tourists, Secondary Retail.

1410, Anju, Blanco Cantina, Boston Pizza, Bread & Circus, Browns Socialhouse, Buon Giorno, Calcutta Cricket Club, Cilantro, Cleaver, Fiore Cantina Italiana, Gringo Street, Home and Away, Jamesons, The Living Room, MARKET Restaurant, Mill Street Brewery, Model Milk, National, Ox Bar de Tapas, Pinbar Sandwich Co., The Pint Public House, Royal, Run Pig Run, The Ship & Anchor, Trolley 5 Brewpub.

$40 - $50 / psf

Mission

Local Business Density, Local Residential Population.

ANEJO, Aida’s Bistro, Blaze, Earl’s, Famoso Neapolitan Pizzeria, Fleur de Sel Brasserie, JINYA, Joyce, Mercato, OEB Breakfast, Original Joe’s, Mister Chen’s, Seed N Salt, Suzette Bistro, Towa Sushi, Vin Room, Wurst.

$40 - $50 / psf

Marda Loop

Local Business Density, Local Residential Population.

Avenue Deli, Boogie’s Burgers, Globefish Sushi, K-ThiVietnamese Cuisine, Marda Loop Brewing Co., Merchants, Original Joe’s.

$50 - $60 / psf

Kensington

Downtown and Local Business Density, Local Residential Population, Tourists.

Brasserie Kensington, Burger 320, Freshii, Globefish, Hayden Block, OJ’s, Osteria, Oxbow, Po-keKensington, Prohibition Freehouse, Pulcinella, Raw Eatery and Market, Regal Cat Café, Red’s Diner, TukTuk Thai.

$35 - $45 / psf


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© 2018 Cushman & Wakefield LLP. All rights reserved.

ERIKA SCHANKEManaging DirectorAmericas Retail Services1290 Avenue of the AmericasNew York, NY 10104, USATel: +1 212 841 5024Mob: +1 404 680 [email protected]

STUART BARRONNational Director of ResearchCanadian Markets161 Bay Street, Suite 1500Toronto, ON M5J 2S1 Canada Tel: +1 416 359 2652Mob: +1 416 220 [email protected]

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