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B.C.’s Energetic Retail Scene Has Its Eye on the Big Red Bullseye
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(Posted on Oct 25, 2016 at 01:00PM by Michelle Bogle)
When Target announced in January 2014 that it would be ceasing operations in Canada and closing all of its 133 locations, it sent shockwaves throughout Canada’s retail, labour and commercial real estate sectors.And, almost three years later, many landlords across the country are still struggling to find new retailers to take over their empty Target stores – especially in cities like Edmonton, Calgary, Saskatoon, Brandon, Winnipeg and the Greater Toronto Area.
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However, the province of British Columbia is in much better shape. Twelve of the 19 former Target stores across B.C. have been filled, outpacing the national rate at which landlords have been able to secure new tenants.
Of those 12 retailers, Lowe’s, Canadian Tire and Walmart all scooped up four locations each. The seven remaining locations in B.C. are either sitting unused while landlords wait for the next ideal tenant or are being renovated to attract other big box retailers, like Winners,Sport Chek and Marshalls.Â
Of those 12 retailers, Lowe’s, Canadian Tire and Walmart all scooped up four locations each. The seven remaining locations in B.C. are either sitting unused while landlords wait for the next ideal tenant or are being renovated to attract other big box retailers, like Winners,Sport Chek and Marshalls.Â
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According to a recent article in the Vancouver Sun, industry insiders thank B.C.’s strong retail growth for the province’s success in filling vacant Target stores compared to other parts of Canada.Â
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Craig Patterson, a retail consultant and the editor-in-chief of Retail Insider, agrees. According to Patterson, the Lower Mainland offers landlords and retailers more protection because of its unique market compared to other provinces.Â
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“Target had some exceptional locations in Canada and it also acquired some real estate that was a challenge at the best of times. When Target took over the Zellers leases, it got all of the company’s real estate – the good and the bad,†says Patterson. “A lot of real estate came onto the market all at once and I think that landlords across Canada have struggled to find the best uses for these spaces once they became vacated by Target.â€Â
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But, while other parts of Canada are still struggling, B.C. is certainly in recovery mode and fairing much better. And, as our province leads the country once again in retail growth and is expecting 6% in sales growth throughout 2016, it’s further proof that now is an ideal time to invest in retail assets across B.C.
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To learn more, please contact Marcus & Millichap’s Vancouver office to speak with a broker.
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