October 24, 2007 Calgary Downtown/Beltline Markets Prepared for: Prepared by: Calgary Real Estate Forum Kevin McCann, Associate Broker Barclay Street Real Estate Ltd.
Calgary s Urban Retail Renaissance For the last few years, Calgary s urban sprawl has continued to stretch the city s boundaries. Most of the retail development has focused on this area in the form of both open and closed shopping centres. Traditionally, office development has dominated the Downtown core Recently, however, there has been a shift of focus towards Calgary s inner-city, various developers are drawn to the core not only for the office building opportunities, but also the inclusion of mixed-use projects with a retail component. For all intent and purposes, the Beltline has become integrated in what was once referred to as the traditional Downtown Core. The issues for downtown retailers are the same in Calgary as in most cities: traffic, parking, and social issues The success for many of these downtown retailers will be the result of an increased population density living in the downtown core through a CONDO BOOM. Increased population in the Core will improve the overall productivity of the downtown retail market by increasing shopping in evenings and weekends. Also, more stakeholders living in the downtown core will add to political will to solve the social disintegration that been occurring in the core has THE OUTCOME: Calgary s Downtown retail scene, both street front and mixed-use, will become more aligned with other high-end retail cities like Montreal, Toronto and Vancouver
Map of New Developments Downtown/Beltline
Downtown Developments Retail Component Building Name Developer Approximate Area (sq. ft.) Number of Floors Approximately Retail Space (sq. ft.) Delivery Dates Retail Space Pre-leased Livingston Place II Bentall Real Estate 440,000 21 4,500 Q1 2008 Ki 8 West 8 th Ave & 8 th Street 143,000 10 8,500 Q1 2008 Bankers Court Brookfield Properties 250,000 15 9,000 2008 Jamieson Place Bentall Real Estate 920,000 38 15,000 Q4 2009 Hy s Re-opening Centennial Place I 3 rd Ave & 4 th Street The Bow (Encana Building) Penny Lane East Tower Oxford Properties 796,191 40 33,653 Q3 2009 Encana Corporation 2,000,000 58 100,000 2010 Also 100,000 sf cultural component Matco Investments 1,000,000 50 60,000 Q1 2010 Le Germain 9 th Ave & Center Street 67,800 20 7,800 2010
Building Name Developer Approximate Area Hotel Arts Gallery Beltline Developments Retail Component Torode Realty Advisors Number of Floors Approximate Retail Space Delivery Date 55,000 3 18,000 2008 Starbucks, Head Kandi Salon Stampede Station I OPUS 156,805 9 13,905 2008 High end restaurant, financial institution, coffeehouse Palliser South Aspen 290,000 18 TBD Mission Block Securfund 22,000 4 6,000 2009 Expanded Urban Barn Keynote Balboa Land 224,000 13 32,000 2009 Sunterra, 2009 Retail Space Pre-leased 4 th Street Development Strategic Group of Companies 120,000 20,000 2009 Under Discussion Curtis Block Torode Realty Advisors 145,000 20,000 2009 Office Condo West Arriva Torode Realty Advisors 385,000 8 36,000 2009 Boutique Hotel Stampede Station II OPUS 320,000 19 5,800 2010 New Century Plaza Giffels Management 202,716 10 21,000 24 months postanchor tenant
Downtown/Beltline New Development Summary Location 2008 2009 2010 Downtown 22,000 66,000 167,800 Beltline 32,000 78,000 26,800 Total 54,000 sq ft 144,000 sq ft 194,600 sq ft Over the next 3 years, approximately 500,000 square feet of new retail space will be added to the Downtown/Beltline regions with many retail area yet to be allocated by Downtown Office developers
Downtown/Beltline Retail Re-Developments Building Name Developer Approximate Area Number of Floors Approximate Retail Space Delivery Date Retail Space Pre-leased Ramsay Exchange Torode Realty Advisors 3,200,000 N/a 250,000 2009-2011 Boutique Hotel, Retail, Restaurants Stampede Re-Development Calgary Exhibition & Stampede N/a N/a All 2009 Hotel, Casino, Roundup Expansion TD Centre Eaton Centre 20 Vic 4 372,804 2009/2010 Holt Renfrew 147,000 sf Harry Rosen 30,000 sf Barron Building Platinum Equities Inc. 85,700 11 17,700 Q3 2009 Eau Claire Towers Harvard 1,600,000 Buildout 200,000 Phase One Construction Mid-2008 Retail & Entertainment Scotia Square Aspen Properties 562,812 42 100,000 2009 Renovations & Remerchandising Tower Centre Aspen Properties 253,258 4/5 TBD Ruth Chris FASHION CENTRAL Encorp Group 30,000 2, plus mezzanine 5,306 Q2 2008 High End Fashion Retailers Macnaghten Block The Hull Block The Alberta Block Main 2 6,887 Q2 2009 3 20,000 Q2 2009 East Village The Rivers Various Approx. 6,000 residential units Sq. Ft. TBD N/a TBD Multi-Phased Downtown Campus,Fashion, Restaurants Big
Re-Development Highlights Fashion Central Encorp Group begins construction of their redevelopment of the 100% Corner at Stephen Avenue and 1 st Street SW. Fashion Central is being marketed as a new hub for high-end fashion stores in Calgary attracting both local and recognized designer retailers not otherwise found in Calgary. There will be a total of 26 boutique spaces upcoming in Calgary s downtown core. Area: Approximately 30,000 sq. ft. Leasing Rates: $45 - $80 www.fashioncentral.ca
Development Highlights The Bow H & R REIT s 2,000,000 sf office complex will include 100,000 sf of retail businesses and 100,000 sf of additional cultural venues. Completion is projected for the end of year 2010/2011
Development Highlights Le Germain A mixed-use project at the corner of 9 th Avenue and Center street, across from the Calgary Tower. Complex will consist of 40 condominiums, a luxury hotel and office tower. Construction commenced in July of this year. Le Germain is seen as another step towards making Calgary not only the epicentre of Western Canadian business, but a cultural centre as well. Sold out at over $1000/sf
Re-Development Highlights Stampede Re-Development & Expansion This initial phase of the Stampede development is projected to be completed in 2009 and will include an expanded Roundup Centre, a new casino, and a new hotel (approx. 300 rooms) - all to be located on the northwest corner of the Stampede grounds. Further expansion will include a western-themed retail marketplace with shops and restaurants. http://development.calgarystampede.com/
Re-Development Highlights Ramsay Exchange. The development in Ramsay includes a diverse range of multiresidential housing, office and retail space The project is proposed to offer 300,000 square feet of retail space, 2,000 residential units, and 650,000 square feet of commercial/office space
Re-Development Highlights East Village Re-Development The Rivers East Village, part of a district renamed The Rivers, is a 15-block wasteland east of City Hall to Fort Calgary and north from 9th Avenue to the banks of the Bow River. Ground was broken Oct 17, 2007 to improve the infrastructure needed to support this redevelopment. Ground floor entertainment and retail oriented commercial uses are being incorporated into the development http://www.calgary.ca/docgallery/bu/planning/pdf/east_village_arp/8027_eas t_village_arp_part1of2.pdf
Calgary s Urban Retail Renaissance Summary Currently supply constraints versus the overall demand for retail space has created a virtual ZERO percent vacancy rate for Downtown retail space. Rents have increased dramatically ranging from $40 - $50 psf NET, with development space much higher Key money for restaurant space is becoming commonplace +15 is no longer necessarily the preferred downtown option for new or expanding retailers streetfront is now a viable and desired option The quality of Downtown retail (both streetfront and mixed-use) will improve dramatically to compliment the traditional dominance of suburban shopping