Nov 24, 2010
Earlier this month we reported on U.S Retailers setting their eyes on Canada.
Target is preparing to enter Canada with 200 stores. Victoria secret has just opened stores in Toronto and Edmonton. Louis Vuitton may be taking additional space at 150 Bloor. Marshalls has committed to six to eight stores in southern Ontario opening in 2011. Lowe’s is opening 3 new stores in Calgary. U.S. clothing chains Maurices, Justice, Dick’s, and Golf Galaxy are all checking out Canada too.
An article out this week in the Victoria Sun expresses a similar sentiment, Demand for retail property rises in Canada.
The Victoria Sun quotes Bill Argeropoulos, director of research for Avison Young, Canada’s largest independently owned commercial real estate services company:
“Retail has been one of the biggest sectors that’s been very active. A lot of that is due to the relative performance of the Canadian economy … Canada went into this recession and came out of it in much better shape than the United States. There doesn’t seem to be a slowing down of appetite for U.S. brands in Canada.”
According to Avison Young, retail properties were the most actively traded asset class in Canada in the first nine months of 2010. About $3.8 billion worth of Canadian retail property was purchased in those nine months.
RioCan, Canada’ biggest shopping mall operator, thinks the growth is going to continue. It expects competition for retail space will be “good for a landlord,” with rents set to rise as more U.S. companies expand north.
Kind of feels like Canada is on fire right now – go Canada go!