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With Big-Box Retailers Closing Shop, What’s to Come?

In the past few years, Canada has seen a plethora of large businesses close shop across the country. Businesses such as Target, Sears, Gymboree, and Payless have (or are currently) closed their doors due to lackluster profits generated in Canada. With that being said, these former big-box shops are now vacant lots that desired to be filled. Some of these lots have been filled while others still remain vacant.

The question dawning on the industry is – what has already filled these vacancies and what is yet to come?

Foreign Shop Owners

Taking a stroll through the mall or a commercial plaza, you may come across a Muji, Oomomo, or Uniqlo. These Japanese retail giants were not shy when it came to expanding their retail business to Canada. Shops, such as these, provide products once not readily available to Canadians or products Canadians had to wait for in regards to shipping. Since their migration to Canada, these shops have seen great success.

Beyond just the products, foreign shops offer a unique sense of diversity and culture. Canadians can engulf themselves in an atmosphere that was once not prevalent. The mix of a unique experience and new products readily available to Canadians has sufficiently increased and maintaining foot traffic to foreign businesses. The possibility of these and other foreign businesses continuing their expansion in Canada is highly probable.

Food Halls

Similar to foreign shops, food halls thrive off of the harmony between products and experience. Going out to eat continues to be an activity enjoyed by many, ergo, expanding on experience is imperative to increase traction. A successful indictment of a food hall came to Upper Canada Mall in recent years. Market & Co. filled the vacancy from what was once Target and has been thriving in the space. Market & Co. not only provides visitors with a place to eat, but a place to purchase items and immerse themselves in the world of cooking through various classes they offer.

Food halls do an exceptional job are attracting various demographics; foodies and shoppers, for example. Food halls also work on the online world, utilizing social media to draw in even more traffic. Whilst they aren’t seen in many places across Canada just yet, there is a great chance we will see a saturation of food halls filling vacancies in the near future.

Albeit, many vacancies have been filled, there are still huge lots looking for investors and businesses alike to do just that. Foreign shops and food halls have seen great success thus far and it would come to no surprise that these types of businesses will fill even more vacancies across Canada.

Learn more about how Canada plans on successfully filling large vacancies here: https://www.redevgroup.com/news-article/successfully-filling-vacancy-with-foreign-shop-owners-and-food-halls

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Canada’s Retail Sector: What’s Maintaining it’s Strong Presence in the Market?

Amidst the rise of e-commerce and the ability to purchase nearly everything via your smartphone or computer, many have shown concern when it comes to the retail market. While e-commerce provides a convenient means of obtaining consumer needs, the physical retail market possesses a plethora of attributes that keep consumer traffic running steady. Marcus and Millichap reported that in 2018, transactions online increased by 20% however, only 4% of the Canadian retail activity took a hit. The unique traits physical retail markets encompass contribute highly to their authority within the consumer market.

Experience

A major factor contributing to the continued success of retail shops is the consumer experience. The ability to physically interact with tangible means and various services bodes well with consumers. Retail stores, such as clothing shops, continue to see a high amount of consumer traffic; this can be correlated to the desire for consumers to try-on clothing and browse various outlets.

Service-oriented businesses providing services such as fitness centres and restaurants thrive due to the desire for a memorable experience that cannot be obtained through digital means. The ability to create an experience and explore tangible elements continues to be a strong point for the Canadian retail market.

High-end markets

Canada’s retail real estate market continues to thrive when it comes to high-end sales. While luxury goods can be obtained online, many looking to spend copious amounts of money on a product or service would rather do so in person to ensure they are getting their moneys’ worth. The wave of tourism in Canada also contributes to the influx of luxury goods purchased in Canada. Marcus and Millichap reported a 2.4% rise in luxury expenditures in relation to tourism within Canada in the third quarter of 2018. For those in the high-end retail market, the sales continue to grow thanks to the boom of tourism and the demand for luxury products.

Moving into 2019, the forecast predicts favourable outcomes for retail real estate investors. Albeit, the growth of e-commerce is moving rapidly, the plethora of attributes retail shops provide to consumers can ensure their place within the realm of shopping remains at a high.

Learn more about Canada’s retail sector growth here: https://www.redevgroup.com/news-article/canadian-retail-sector-shows-strength

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Cannabis Retails and Consumers Rejoice as Legal Shops Open for Business

October 17th, 2018 marked a pivotal moment in Canadian history – cannabis became legal across the country. On April 1st of this year, that moment further ignited action as legal cannabis shops officially opened in Ontario; a long-awaited feat post-legalization. The sell of cannabis via brick-and-mortar won’t seize at just Ontario, as other provinces are now showing interest in opening up their own legal shops in the near future.

The process for obtaining licensing to open said shops came through as unorthodox with the government issuing licenses via lottery as opposed to reviewing requirements. Albeit, those who were granted a license were subject to a deadline of April first with monetary ramifications should they fail to comply with the set deadline.

The first cannabis shop to open was the Hunny Pot located in Toronto. The success of the launch was seemingly unmeasurable as demand flooded in and lines remained extensive even days after. The demand, however, has grown astronomically and supply remains a contingency when it comes to the sell of cannabis. With that being said, supply is not just an issue when it comes to brick-and-mortar; medicinal and online suppliers are still working to meant the demands of the market.

Although supplies may run low, the growth of retail cannabis shop will continue and with just a minute number of shops already open, their level of success in the market has been a determining factor in the overall success of brick-and-mortar cannabis shops. What makes these physical retail shops favourable amongst consumers? These shops allow cannabis users to obtain physical knowledge of various strains. Although online markets are popular, the physical element derived from these shops gives a more authentic and engaging experience for those purchasing cannabis.

What does the future look like for retail cannabis shop?

It’s still too early in the game to know just what the future of these physical retail shops looks like, however, their success in such a short period is telling. The ability to legally purchase cannabis from a tangible source is a key factor these retail shops embody. For owners of these shops, their investments in commercial real estate are beyond wise; catering to a large market across the province. Provided supply can always be met, it’s safe to say that success seems undeniable for these retailers.

Learn more about retail cannabis shops and their expansions across Canada here: https://www.redevgroup.com/news-article/ontario-cannabis-retailers-are-now-opened-for-business

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Commercial Property Investments Show No Signs of Slowing Down in Canada

Canada is home to a multifarious of opportunities in the commercial property investment sector. From the suburban portions that boast significantly lower costs to the heart of major cities that boast convenience for consumers, there is something for everyone when it comes to commercial property investments.

Towards the end of 2018, commercial property investments were still running strong and 2019 is set to be a prime year for investors in the space. Despite the departure of a surfeit of massive brick-and-mortar chains, the demand for retail, industrial, and other commercial properties remains high. With the demand for these spaces remaining high, the supply is low; causing an uproar in competition and pricing.

Cities such as Toronto tend to be the safest for investment funds due to the diverse economy the city boasts, however with that being said, supply is especially low. Ergo, prices for commercial real estate are significantly higher in Toronto and cities alike and properties tend to stay on the market for very short periods of time, with many jumping at the opportunity to own property in such a diverse city.

On the other hand, places such as Alberta are seeing an intense increase in investments, mainly due to the affordability in the market when compared to larger, more dense areas such as Toronto. This back the motion that the commercial property market is not slowing down any time soon; people will continue to invest in prime real estate, whether it be in the big city or the reasonably priced outskirts.

What’s the forecast for retail investments in Canada?

As previously mentioned, the commercial real estate market is showing no signs of slowing down and growth is inevitable as we move further into 2019. The retail markets, in particular, are showing vast growth due to the possession of in-person customer experience that many individuals still look for when shopping. Tech sectors are also seeing continuous growth and account for a significant amount of commercial property investments.

The trends for 2019 are looking up when it comes to commercial real estate as more and more people are seeing the opportunities arising from Canada.

Read more about commercial property investments and their place in the Canadian market here: https://www.redevgroup.com/news-article/investment-in-commercial-property-strengthens-in-canada-

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Commercial Real Estate Shows Little Fear with Talks of Recession Appearing

Towards the end of 2018, we saw a slow down in US GDP which has had its share of ramifications on a grandeur scale. These numbers could be an indication of a potential recession heading to Canada. For a surfeit of industries, a recession can vastly impact their market, causing significant loses. Ergo, key planning is vital.

Recessions impact every market differently. There are those that are swept away by the quick current of financial demise and there are those that are heavily insulated; showing little to no slow down. The tech sector and smart retailers are among the heavily insulated industries, boasting little impact in regards to the former great recession. What does this mean for commercial real estate investors and tech sectors alike?

Granting all of this, these industries are comprised of traits that can keep them afloat through a financial crisis. Well-positioned commercial property owners, specifically, can see little to fear yet again should another recession arise. A plethora of retailers are beating out analysts’ forecasts. Loblaws is a prime example of a commercial retailer thriving with increases in both revenue and net profit. The harmonious merge with a tech team has allowed them to grow without compromising their physical stature.

Another key component that commercial real estate possesses is physicality. Although consumers can purchase pretty much anything online nowadays, there is still an enticing aspect of taking a trip to the local shop. Service plays a major role in this, with a majority of shoppers returning to brick-and-mortar places for the personable service offered. In sum, despite growth in e-commerce, commercial real estate is still thriving and through a global financial crisis, they still reign as heavy-hitting contenders.

Read more about how Canadian Commercial Real Estate is withstanding the test of global and economic issues: https://www.redevgroup.com/news-article/technology-smart-retailers-insulating-canadian-commercial-property

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Retail Real Estate: A Worthwhile Investment Going Strong in 2019

When deciding where you want to invest, it’s imperative that you conduct a significant amount of research into various investment streams in order to ensure you are making the optimal choice for your needs. Some investments, such as stocks or opening your own storefront, come with some potentially high risk and can be vastly time-consuming. Albeit, these investments have proven successful for a plethora of individuals, however, some are still in search of opportunities to allocate their funds elsewhere.

Despite the rise of e-commerce businesses, shopping plazas are still going strong. Malls continue to be filled with eager shoppers, smaller plazas continue to see visitors coming for niche products they may not get elsewhere. Similar to any other investment, retail properties require a high-degree of time, research, and planning. Location, space, and size are amongst some of the factors one must keep in mind when considering a retail property and returns are often contingent on said factors. For example, a shopping plaza in Toronto’s downtown core will cost more than one further out from the city, however, due to a higher saturation of potential consumers in the downtown core, the ability to generate significant profit within a shorter time frame is plausible.

Aside from the aforementioned factors, there are many surfacing trends that are contributing to the continual success of retail shopping plazas. From the rise of cannabis post-legalization to massive retail giants pledging astronomical funds to aid the growth of retail real estate, there are several indicators that pose benefits for shopping plaza investors.

What is driving the retail world to success currently? Why is an investment in retail real estate beneficial? Read the full article here: https://www.redevgroup.com/news-article/it-pays-to-be-in-retail-5-great-signs-for-shopping-plaza-investors

News

Investing In Canadian Commercial Real Estate 2019

You may have learned some hard but valuable lessons in 2018. Not heeding the warnings about the stock market and housing or acting fast enough might have been painful. Your financial statements may be a bigger reminder of that. On the bright side your tax assessments may be going down, so use it as motivation to outperform last year. Charge forward to take action and shake up your portfolio.

Be confident, invest boldly in assets that really make sense right now, and enjoy safety and the best performance by optimizing your portfolio now. There are lots of reasons to be positive about investing in Canada this year, even if that requires making some changes to your investment strategies and the assets you’re holding.

Read the complete article at https://www.redevgroup.com/news-article/the-optimist%E2%80%99s-guide-to-investing-in-canada-for-2019

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Investment in Commercial Property Surges in Canada

According to Canada’s Real Estate News Exchange (RENX), investment in commercial property hit a new record high in the first six months of 2018, at $26.8 billion. That could put the entire year well above the annual record set in 2017 of $43.1 billion.

Current appetite for investment together with the safety and yields Canadian commercial property offers leads experts to believe that this trend is unlikely to waiver in 2019. Everyone wants a bit of the action, including big tech giants like Google.

While many analysts and biased promoters are doing a smooth job of downplaying the risks in these other markets and sectors, individuals need to be realistic about the dangers and look at the data for themselves.

It’s true that while commercial properties may offer brick and mortar security, the yields on many prime properties are trading low. Yet, many will find greater returns and yields in more localized properties just out of the center, and in more suburban and secondary markets. Of particular note, according to RENX, the reinvention of retail and spending patterns are expected to keep boosting retailer expansions at the discount and luxury ends of the market. Furthermore, mixed-use properties with retail and apartments could perform well, as vacancy rates dip below 3% and encourage rental rate increases.

Read more at https://www.redevgroup.com/news-article/investing-commercial-property-surges-but-will-canadians-bring-capital-home-in-time

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Over 198,000 views!

We officially claimed the YouTube channel name https://www.youtube.com/RichardCrenian as we are getting close to hit the 200,000 views on the business series by Richard Crenian. Richard empowers and inspires people of all ages to take small steps everyday in business to self improve and build up their business. Richard is known for his amazing positive energy, take a minute to get inspired!

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Richard Crenian | The Business Series | Keeping a Positive Attitude

Richard Crenian and Brad Powe discuss the importance of keeping your chin up, no matter the challenges in your path. Having a negative attitude will hurt your sales and the moral and productivity of your company. A positive attitude will reduce your stress, keep you healthier and enhance your productivity – All important for business success.