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Construction at University District, Calgary Maintaining Momentum

Ever since Alberta received approval in 2016 for the University District’s plan in Calgary, construction’s been handled very efficiently and swiftly. All commercial and residential spaces, public areas, and parks are developing at unexpected rates, with huge progress being apparent to all, whether they are visitors or locals.

The multi-use community at University District is prepared to reshape the face of Calgary once it is ready.

Construction Work Staying on Schedule

Although most of Alberta’s been under lockdown since the coronavirus pandemic picked up speed, not all businesses have been set back. It was determined that the construction industry falls under essential services, which helped in allowing for uninterrupted progress at University District. Work is staying on schedule and is still expected that everything will be completed by the end of 2021.

The construction progress is building up some excitement in the community, with boosted numbers of daily visitors to the University District Discovery Centre. At the Discovery Centre, you’ll be able to see detailed plans and examine the neighbourhoods future design.

Retailers Setting to Open by Late August

University District in Calgary, being mixed-use property, Alberta will provide it with all the amenities needed for a thriving community. Shops, Social spots, and services will be accessible to everyone from residents and visitors.

Some service providers and retailers are already preparing to get down to business. By late August, we should see Scotiabank, Curious Hair Skin Body, Market Wines, Denim & Smith Barbershops, and Save-On-Foods open their doors to the general public.

Residential units like August by Avi, The Brenda Strafford Foundation’s Cambridge Manor, and Rhapsody by Gracorp predict their first residents will move in by fall 2020, which will help boost pedestrian traffic and attract more retailers.

Sustainable and Accessible Neighbourhood Design

University District is the first community in Alberta, and also the largest in Canada, to get the LEED-ND Platinum certification – international certification for commitment to Leadership in Energy and Environmental Design for Neighbourhood Development.

As such, the neighbourhood is designed to be accessible by all and sustainable. With everything within walking distance, residents and visitors are going to be encouraged to interact with the community and spend longer visiting restaurants, shopping malls, cafes, entertainment centers, and other spaces.

That is excellent for pumping up foot traffic and spending within the neighbourhood, making it appealing for retailers and business owners alike.

Summary

With the University District in Calgary quickly approaching its completion, it’s proving to be a wonderful investment opportunity. The project is generating interest and attracting prospective tenants and retailers. If you are curious about learning click here.

https://www.redevgroup.com/news-article/construction-at-university-district-calgary-maintaining-momentum

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Toronto Mixed-Use, Multi-Tower Redevelopment

Upgrades to the commercial districts of Toronto, Ontario are always welcomed by retailers and CRE investors alike. And this time, it’s the Golden Mile district mixed-use redevelopment that’s set to undergo massive changes. This redevelopment project is expected to attract more visitors and more foot traffic. With everything going according to plan, Golden Mile’s multi-tower project is on the path to becoming the hottest part of town.

Plenty of Green Spaces

While the multi-tower mixed-use redevelopment project initially suggested a total of 3,500 m² for parks and open spaces, the area’s been increased to astonishing 5,694 m².

This comes as great news for retailers who are expecting an increase in foot traffic. After the coronavirus pandemic’s been put under control, consumers are expected to flock to parks and open spaces and enjoy greater freedom once again, which will inevitably lead to more interest in brick-and-mortar shops, cafes and restaurants nearby, and subsequently more spending.

What This Means for Canadian CRE Investors

With the proposed redevelopment project in Toronto, everyone’s showing greater interest in the Golden Mile district. From potential new renters in the area to business owners looking for new office space and excited retailers who are looking to increase their sales – everyone is excited to see this project succeed.

Now is a good time to invest in retail CRE in Ontario and receive a higher return on investment.

News

Retail Reaching New Heights in Edmonton

The coronavirus pandemic has left its mark on many businesses around the world, however, the city of Edmonton seems to be rising to the challenge.

Alberta’s capital seems completely unphased, and even thriving amidst the crisis – its success continues to be driven by strong r etail and increasing interest from foreign and domestic CRE investors.

So, if you were looking for the right Canadian city that can bring a great return on investment, Edmonton might just be it.

It’s Not Only Downtown Edmonton That’s Thriving

While traditionally, most retailers have been focusing on downtown for their new locations, this isn’t the case in Edmonton. The entire city is undergoing a retail revolution, and new shopping centers and locations are being opened all around.

In South Edmonton Common, there’s now a new Nordstrom Rack and Saks Off 5th, a new Canadian Tire, and even a large Ikea. The Southgate Centre has some of the highest sales per square foot in all of Canada, and over $130 million was just recently invested in Londonderry Mall.

The City of Edmonton Blossoming

There are major construction plans in various locations in Edmonton, thanks to the Valley Line transit. The Bonnie Doon Shopping Centre is set to be transformed into a huge mix-use district with plenty of public spaces, new senior housing locations, more retail space, and more residential units, which will draw in better foot traffic.

A new shopping centre is also being planned at Millwoods Town Centre with thousands of new housing units and retail and restaurant spaces.

News

Ontario Government Reopens Commercial Real Estate Construction Sites

The local Ontario Government has confirmed its past statement that they expect the reopening of construction sites province-wide. The coronavirus pandemic has closed all malls, large retail stores, and various other activities, even including construction sites.

Some construction sites have been opened since April, but not all of them. However, this new announcement opened every construction project in May, including commercial buildings sites.

Construction is a Large Part of Our Economy

In 2016 alone, the whole Ontario construction industry employed over 500,000 people. This is including both non-residential and residential construction. But this isn’t just it. Many construction companies are building retail and commercial space which will help bring in new investments coming into the province.

Without construction, other businesses are suffering additionally. The President of Residential Construction Council of Ontario, Richard Lyall, stated that “It’s critical for the government to get the economy going again as construction is a huge part of Ontario’s economy.”

But Which Construction Sites are Reopening?

The announcement from the government includes the continuation of work on construction projects involving, commercial development, residential development, excavation, site preparation, digital infrastructure, telecommunication work, education, logistics & shipping infrastructure, and even more.

This is fantastic news for many people, as all CRE projects in Canada were sitting in waiting for some time now. Although no one is sure if stage one of phase 2 will end in approximately a three-week or a four week period, this is still positive news for many businesses. It shows that things are moving towards a more positive direction and that we can all expect the CRE construction to get back on track again.

Ontario Phase I reopening

This phase of reopening can exclude several businesses. Businesses like retail, indoor and outdoor household services, sporting clubs, golf courses, libraries, and more have been allowed to conduct business since the 19th of May; however, barbershops, restaurants, hair and nail salons are not included in this specific phase of reopening in Ontario.

Each sector and different businesses have different restrictions regarding reopening in order to remain vigilant in the event of another increase of coronavirus cases.

Daily there are more retail construction sites continuing their construction operations, including construction related to hospital work, retail space, and petroleum.

Cities like Calgary have already begun preparing to reopen their retail sector and their malls, so this is can be great news for Ontario and other provinces as well. Malls have opened their doors to customers and have to keep up on taking precautions so they can keep both their workers and customers safe.

Summary

This news is encouraging, especially for companies that have been looking to invest in CRE development. Canada is moving in the right direction and has been re-opening its economy more and more gradually each week. Our goal is to maximize investor returns and to keep communication open with every one of our investors to ensure our goals and objectives are aligned. We have a 3-step process to identify value for all our investments – from due diligence to a tax-efficient exit strategy.

For more, please visit:

https://www.redevgroup.com/news-article/ontario-government-reopens-commercial-real-estate-construction-sites

News

Reopening Commercial Real Estate Construction Sites in Ontario

The Ontario local Government has confirmed their previous statement that they expect the reopening of construction sites across the state. The coronavirus pandemic has closed all large retail stores, malls, and various other activities, including construction sites.

Some of the construction sites were opened during April, but not all of them. However, this new announcement opened all construction projects in May, including commercial buildings.

Which Construction Sites are Being Reopened

The announcement includes the continuation of work on construction projects involving, residential development, commercial development, excavation, site preparation, education, digital infrastructure, telecommunication work, logistics & shipping infrastructure, and so on.

This is excellent news, as all CRE projects in Canada were sitting in place for quite some time now. Although no one knows if stage one of phase 2 will end in a three-week period or four weeks, this is still positive business news. It shows that things are moving in a more positive direction and that we can expect the CRE construction to ramp back up again.

Ontario Phase I reopening

This phase of reopening does not involve several businesses. Businesses like retail, outdoor and indoor household services, golf courses, sporting clubs, and libraries have been allowed to conduct business since May 19th; however, restaurants, barbershops, hair and nail salons are not included in this phase of reopening in the province of Ontario.

Each sector has different restrictions regarding reopening in order to remain vigilant in the event of another flair up of coronavirus cases.

Media, News

Canada March 2020 Retail Sales: Who were the winners?

When looking at how fast stay-at-home orders came into effect, social distancing, work from home, and masks became more normal it’s no surprise that retail and stores took a hit in sales during March. Even with online orders and outside pick up to help ease people’s minds and keep everyone safe, many people are not shopping. You can see this fear and unease in people even in statistics, looking at retail sales data for March has had a significant decrease.

Retail Sales Data

Statistics Canada released record-breaking sales data for retailers in the country. The data is broken out by each sector and you can clearly see what has happened to non-essential businesses when they were forced to close their doors halfway through March.

Looking at the March sales data you can capture a glimpse into the panic during the first weeks of closure and see the overall decline in sales of 10 percent in March to approximately $47 billion, just as the lockdown was starting to take effect. According to the Financial Post, only 40% of retailers were closed for an average of five business days in March. However, 91% of clothing and other such accessory stores were closed for an average of 13 days.

What is the data showing and what does it mean? Although it looks like there was a decline of 10 percent in March, if we take out gasoline and auto sales, the stats actually reveal an increase of 2.8% in retail sales in March 2020, driven mainly by grocery sales. Grocery sales have had a significant increase, accounting for a third of retail in March.

April however is likely a different story as retailers were forced to be closed for the whole month. StatsCan is estimating that Aprils’ data will show approximately a 15 percent decline in sales.

Overall as businesses are closed in May as well, this back-to-back decline for such a long period of time will be new unchartered waters for all of us.

Who are the Losers and Winners during March 2020?

One thing is certain; many Canadians are itching to go back to normal, so the question is, where are we headed next?

The main deciding factor between winners and losers during this time is if it is an essential or non-essential retail business.

Retailers that sell things such as clothes, shoes, and luxury goods have been some of the hardest-hit, they lost half their retail sales if not more, as compared to last year during the same time. Retailers that did the best obviously include groceries, but also beer, liquor, and beverages; earning 20 to 30 percent more compared to March in 2019.

Other sectors that did well include health and personal care that had a 4.6 percent increase, e-commerce jumped up by 40.4 percent, and cannabis climbed up 19.2 percent.

The stark contrast in these numbers and each different market show a true divide between the retailers directly affected and those who actually boosted profits or faired well. As investors, we need to stay on top of knowing who were the winners, and who will continue to be to know exactly where to direct our investments.

Summary

As the data shows, Canada retail had varying outcomes during March 2020 but overall did okay. Losses were found in more luxury services and retail businesses but boosted in essential services. April will show huge declines in sales because of the month-long closure but May will hopefully show a bit of bounce back with retailers finding ways to still provide their services.

Which businesses will bounce back and who will drive the eventual economic recovery, is ultimately the largest question of all and what everyone will be watching for.

https://www.redevgroup.com/news-article/canada-march-2020-retail-sales-who-were-the-winners

News

Saskatchewan Introduces New Measures for Reopening Businesses

It will be a while before all businesses can return to operating at full capacity in Saskatchewan. However, many of the imposed coronavirus measures are set to be loosened over the coming weeks in an attempt to restore the economy, which means some businesses should get ready to reopen.

This comes as a great relief to many Canadian retailers, restaurant owners, and CRE investors, as things are looking up.

Since the reopening of Saskatchewan will occur in phases, and many preventative guidelines will still need to be followed, businesses will have to come up with strategies that will help them recover expenses and turn profits.

Retailers First to Open

Many clothing retailers have adapted to the coronavirus lockdown by offering online orders and deliveries and curbside pick-ups. This trend is expected to continue even after May 19 when they’re scheduled to open their doors once again.

This is primarily because clothing retailers will have to change the way they operate when they reopen.

Bars and Restaurants to Follow Soon After

Although the exact date hasn’t been determined as of yet, in the weeks after clothing retailers have reopened, restaurants and bars will be allowed to do the same.

The hospitality industry was among those that have been hit the hardest by the coronavirus. So it’s not surprising that bar and restaurant owners are excited to follow any imposed measure as long as they are given a chance to reopen.

And many measures will need to be followed.

Media, News

How COVID-19 Has Affected the Canadian CRE Market | Canadian Real Estate News

As you may have already read, the novel coronavirus has left an impact on industries around the globe with the Canadian real estate market being no exception.

These unprecedented developments have left several CRE investors pondering on the future of the market.

While the situation is very severe from a health stance, Canadian retail CRE investors are actually in a good place and would benefit from investing in commercial real estate during COVID-19. Here’s why!

Canada and COVID-19

The number of confirmed cases with COVID-19 are on the rise and this has sent some into a state of panic. Many fear that the worst is yet to come, and governments, healthcare officials, and businesses are doing all they can to stop the epidemic from spreading.

That means closing restaurants, schools, gyms, museums, and shopping malls around Canada. Many private and public institutions have officially shut down to flatten the curve and remain compliant with social distancing norms.

Industries Thriving in the Pandemic

While clothing retailers, restaurants, and coffee shops cannot help but to close their doors for the duration of COVID-19, Canadian CRE investors don’t actually have any cause for anxiety. Many commercial retail spaces are open to serve people who are in lockdown.

Grocery stores, pharmacies, medical supply shops, and medical offices are naturally getting more foot traffic, and this will go on for the duration of COVID-19.

They provide essential products and services, and even if a complete lockdown is ordered, as we’ve seen in countries such as Italy and Spain, and in various cities in both China and the U.S., these retail locations have remained operational.

The Future Is Hopeful

Regardless of the current situation, the future is bright for retail CRE. Those who invest in retail real estate now stand to benefit financially. At the moment, the costs of buying CRE are lower, and once the pandemic is put under control, retailers will jump at the opportunity to rent out spaces, open up shops, and regain financial stability just like what’s happening in China as many retailers start to reopen.

It’s expected that shopping at brick-and-mortar locations across Canada will improve to pre-Corona levels; especially restaurants, entertainment venues, gyms and discount retailers.

Conclusion

Investing in Canadian retail CRE could offer a big return on investment once the pandemic threat has passed. There are already reports analyzing “retail recovery following containment of COVID-19” as China has initiated its reopening. This confirms that while many around the world are currently experiencing restrictions, it will not last forever, and the future appears to be bright for those wise enough to make strategic investments now.

For more information, please visit:

https://www.redevgroup.com/news-article/covid-19-and-its-effect-on-canadian-cre

Media, News

Malls Adapting to the Newest Changing Trends in Saskatchewan

Photo Credit: Pixabay

The past few years have been quite challenging for some Saskatchewan malls and shopping centers. The rise of E-commerce retailers and online shopping, in general, has evidently caused a decrease in foot traffic and a relatively significant drop in profits.

Luckily, there’s a silver lining. Many of Saskatchewan’s most prominent malls are adapting to the changing trends and are quickly becoming consumer hotpots once again. If you have an interest in Canadian retail and commercial real estate, this might just be the right time for investing.

New Types of Stores Opening up Across Canada’s Malls

As one door closes, another one opens. And while some of the biggest tenants are leaving Saskatchewan malls, Regina’s Cornwall is set to become the home for many renowned brands. Urban Planet, Ardene, and Eclipse are just some of the newcomers in this downtown mall.

When it comes to shoe and apparel stores they might be the minority in the malls of the future; however, expect to see an increase in the number of medical offices across Canada’s malls.

Dentists, optometrists, private general practitioners, and more are expected to set up shop in malls in Saskatchewan, Alberta, Ontario, and other provinces. Even more so as events like global pandemics and the normal flu season and other diseases continue to occur.

Experience-Based Malls Are Here to Stay

Besides medical offices, Canada’s malls will boast a few more types of businesses. The malls that thrive and survive are those that don’t just offer shopping, but those that offer experiences.

Media, News

The Canadian Real Estate Market is in a Golden Age

Canada has proven to be one of the best destinations to invest in global and domestic capital. When it comes to the 2020 Canadian Real Estate Market, this is the best decade to take advantage of commercial real estate properties in Canada and there are several reasons why.

First, Canada has the highest lease demand in its history. Rent levels are also constantly rising due to market expansion and increased opportunities. Companies renting retail space are also fulfilling their part of the deal by occupying more buildings than ever before.

Canadians aren’t only focused on booming metropolises like Toronto and Vancouver these days. Commercial real estate opportunities are constantly expanding into areas like Saskatoon, Edmonton, and Calgary, among other cities. Let’s analyze the important data of the 2020 Real Estate Market.

Statistics for Canadian Retail Estates

Record demand for properties in the Canadian Real Estate market is due to fluctuating societal changes, advanced technological developments, and various developing policies across several years. Large Canadian cities have become lucrative options for businesses, investors, and residents to take advantage of.

Generally, commercial real estate has been demonstrated as a stable and profitable investment for individuals. For example, the retail sector is changing its perspective and mindset on uses for certain spaces and prime locations. Brick and mortar stores are being transformed into pick-up stations for just about everything from food to clothing.

Food services and cooking facilities are gradually being set up for delivery-only meals, marking a new trend in cities like Toronto and Vancouver. Aging retail properties in the downtown and suburban cores of major markets are being rejuvenated through redevelopment plans.

National statistics for retail properties show that there will be about 4.31MM sq.ft of new supply in 2020 and total retail sales are going to increase by 2.9%. According to CBRE Research, total retail sales per capita are forecasted at $16,801 versus $16,480 in previous years. It is expected that retail in 2020 is expected to outperform its performance from last year.

Looking Beyond The Big Cities

The biggest real estate changes have historically happened in the largest cities. However, new data suggests that there is movement going on in smaller markets as well. These smaller cities are getting their spotlight due to broader workplace trends and global investments.

Domestic companies also engage the real estate market and compete with foreign capital. Their primary markets are Ottawa, Quebec, and the Waterloo Region. Projections show that many smaller markets will outperform their forecasts, including:

* Montreal by 13.8%

* Quebec by 10%

* Waterloo by 10%

* Ottawa by 8.5%

Regional Statistics

The Canadian Real Estate Market Outlook forecast shows that Calgary retail commercial retail investments are going to grow over $400 million compared to $386 million in 2019. Even though Calgary is a hot rental market for apartments, the trend is rubbing off on commercial retail as well, and there is noticeable growth.

On the other hand, the total retail sales growth in Saskatoon is projected to have a 3.7% increase in 2020 compared to a year earlier. Along with large mixed-use development projects for both commercial and residential space, it’s expected that the market will grow even further.

Conclusion

Canada is entering the new golden age of retail commercial real estate, and the numbers show it. All indicators are strong and positive. If you want to learn more about it, contact ReDev Properties today.

https://www.redevgroup.com/news-article/canada-cre-entering-golden-age