Calgary Downtown/Beltline Markets

October 24, 2007
Calgary Downtown/Beltline
Markets
Prepared for:
Calgary Real Estate Forum
Prepared by:
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
shopping in evenings and weekends.
increasing
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
Approximate Area
(sq. ft.)
Number of
Floors
Approximately
Retail Space
(sq. ft.)
Delivery
Dates
Retail Space
Pre-leased
Bentall Real Estate
440,000
21
4,500
Q1 2008
Ki
8 West
8th Ave & 8th 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
Centennial Place I
3rd Ave & 4th Street
Oxford Properties
796,191
40
33,653
Q3 2009
The Bow (Encana
Building)
Encana Corporation
2,000,000
58
100,000
2010
Penny Lane East Tower
Matco Investments
1,000,000
50
60,000
Q1 2010
Le Germain
9th Ave & Center
Street
67,800
20
7,800
2010
Building Name
Developer
Livingston Place II
Hy’s Re-opening
Also 100,000 sf
cultural
component
Beltline Developments – Retail Component
Approximate
Area
Number
of Floors
Approximate
Retail Space
Delivery
Date
Retail Space
Pre-leased
Torode Realty
Advisors
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
2009
Mission Block
Securfund
22,000
4
6,000
2009
Expanded Urban
Barn
Balboa Land
224,000
13
32,000
2009
Sunterra,
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
OPUS
320,000
19
5,800
2010
Giffels
Management
202,716
10
21,000
24 months postanchor tenant
Building Name
Hotel Arts Gallery
Keynote
4th Street Development
Stampede Station II
New Century Plaza
Developer
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
Ramsay Exchange
Stampede Re-Development
TD Centre
Eaton Centre
Approximate
Area
Number of
Floors
Approximate
Retail Space
Delivery Date
Retail Space
Pre-leased
Torode Realty
Advisors
3,200,000
N/a
250,000
2009-2011
Boutique Hotel,
Retail, Restaurants
Calgary Exhibition
& Stampede
N/a
N/a
All
2009
Hotel, Casino,
Roundup Expansion
4
372,804
2009/2010
Holt Renfrew
147,000 sf
Developer
20 Vic
Harry Rosen 30,000
sf
Barron Building
Platinum Equities
Inc.
Eau Claire Towers
Harvard
85,700
11
1,600,000 Buildout
17,700
Q3 2009
200,000
Phase One
Construction
Mid-2008
Retail &
Entertainment
2009
Renovations & Remerchandising
Scotia Square
Aspen Properties
562,812
42
100,000
Tower Centre
Aspen Properties
253,258
4/5
TBD
30,000
2, plus
mezzanine
5,306
Q2 2008
2
6,887
Q2 2009
3
20,000
Q2 2009
N/a
TBD
Multi-Phased
FASHION CENTRAL Encorp Group
Macnaghten Block
The Hull Block
The Alberta Block Main
East Village – The Rivers
Various
Approx. 6,000
residential units
Sq. Ft. TBD
Ruth Chris
High End Fashion
Retailers
Downtown
Campus,Fashion,
Restaurants…Big
Boxes?
Re-Development Highlights…
Fashion Central
Encorp Group begins construction of their redevelopment of the 100% Corner at Stephen
Avenue and 1st 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 9th 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