Retail Report Q 2 - provided by Colliers International
Despite uncertainty before the provincial elections in the second quarter of this year, the Metro Vancouver retail market has remained solid over the past six months. Activity took place metro-wide over the first half of 2013, with steady levels occurring in the downtown and inner suburbs, and with increased velocity in the outer suburbs. These opportunities todo deals are largely the result of the market being in a state of equilibrium.
Retail investment demand has outpaced supply across the city – particularly in the $3 million to $10 million range. Due to a lack of available supply, the market recorded only 17 investment transactions and one land sale of more than $5 million during the last six months – equating to just over $194 million dollars. Among those transactions, the sale of Lougheed Super Centre and the Aldergrove Village Shopping Centre made up 30.5% of the total sales figure, while sales between $5 million and $10 million comprised 42.1%.
In the leasing market, the central business district continues in a state of flux, as retailers vie for positioning in emerging areas and around new big-draw retailers. This has resulted in a general shift eastwards in the downtown core, and is leaving owners of property on previously prominent retail blocks to re-evaluate their market strategy. Gastown is under an evolution with many new retailers entering the area, and Yaletown has become the destination neighbourhood for evening and night life. Lonsdale, although showing retail weekness at the moment, has two large mixed use projects under development which will draw some large retail anchors to the area, strengthening the market for small business retail.
By Sector :
The Building Materials and Garden Supplies sector demonstrated the largest amount of growth over the year to March 2013, with a 5.0% increase in consumer expenditure; followed by the Motor Vehicles sector (4.3%) and the Home Furnishing sector (3.3%)
• The Food and Beverage sector recorded the largest overall expenditure levels – grossing almost $7 billion
dollars over the 12 months to March 2013.
• From March 2012 to March 2013 the Electronics and Appliances sector recorded the largest decline in gross sales – with $132 million less year on year. With sales decreasing by 8.4% this industry saw the second largest negative change, after Sporting Goods and Hobbies (9.1%).
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