ALBERTA ALWAYS COMES BACK: THRIVING SERVICE-BASED RETAIL SPURS NEW DEVELOPMENT PROJECT IN CALGARY
Jeremy Thal President & CEO Royop Development In the last five years, Alberta’s retail tenants have faced three strikes; a hike in minimum wage to $15 per hour; municipal tax increases to offset politicians’ overspending; and last but not least, the carbon tax. Throw COVID-19 into the mix, and it’s no wonder the retail sector is struggling so much, says Royop Development president and CEO, Jeremy Thal. Still, with a 97% occupancy rate within their retail portfolios, Thal remains optimistic. “Alberta is made up of resilient people and we always come 38
back. We're smart and hard-working and building the largest, a 300,000 sq. ft. because of that the entrepreneurs of this mixed-use development called Township. province are surviving, but you've got to It’s only the first phase of a $125 million remember, it's not just project that will include “Alberta is made up of COVID that we’re 1.5 million sq. ft. of retail, dealing with right now,” hospitality, entertainment, resilient people and we says Thal. food and beverage, office always come back.” and residential space. “Calgary was never overbuilt with the retail sector. And with 1.4 As part of redefining the onsite experience million residents, we’re almost such a big for shoppers, in addition to dedicating areas city now that we can withstand a recession.” for curbside pickup and creating Instagram-worthy spaces, they’ve invested Service-oriented retail, from grocery and over a million dollars on art. They’re also liquor stores to hair salons, dental offices involving local community members to help and cannabis shops are all thriving, says create dynamic experiences throughout the Thal. But although traditional retail has center. faltered, they’ve still been able to collect rent from more than 90% of their tenants, he “We want people to come down to the adds. center to check out all the new art and then stay to shop,” says Thal. Meanwhile, a 7,000 sq. ft. vacancy from an Urban Barn furniture store that didn’t renew “Only a few projects like this exist in Canada their lease with Royop has already been – Park Royal in Vancouver and Dix 30 in backfilled. “A 7,000 sq. ft. vacancy sounds Brossard are a few examples. By creating pretty awful in this market. But we have a that additional experience, we’re trying to dermatology clinic out of Edmonton that’s get people to stay and hang out, just like taking the whole thing,” says Thal. when you were a kid, you would just go hang out at the mall.” Of all the real estate projects under construction in Calgary right now, Royop is ■ Barbara Balfour Canadian Real Estate Forums / FALL 2020
