Alberta Always Comes Back: Thriving ServiceBased Retail Spurs New Development Project in Calgary

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. 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 COVID that we’re “Alberta is made up of project that will include 1.5 million sq. ft. of retail, dealing with right now,” resilient people and we hospitality, entertainment, says Thal. “Calgary was never always come back.” food and beverage, office and residential space. 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 Service-oriented retail, from grocery and liquor stores to hair salons, dental offices and cannabis shops are all thriving, says Thal. But although traditional retail has faltered, they’ve still been able to collect Instagram-worthy spaces, they’ve invested over a million dollars on art. They’re also involving local community members to help create dynamic experiences throughout the center. 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 Meanwhile, a 7,000 sq. ft. vacancy from an stay to shop,” says Thal. 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 Of all the real estate projects under hang out at the mall.” construction in Calgary right now, Royop is ■ Barbara Balfour Canadian Real Estate Forums / FALL 2020