With the legalization of marijuana across Canada just around the corner, entrepreneurs and business owners are moving quickly to secure their spot in the market. From dispensaries to accessory shops, cannabis culture is positioned to create waves across the Canadian retail and commercial real estate landscapes.
Looks like the legalization of marijuana may heat up Wild Rose Country's business sector. Alberta has received 87 applications so far from people wanting to open pot stores, which will be smoking hot for the commercial real estate sector. The Alberta Gaming and Liquor Commission (AGLC) is expecting more.
A recent report lists Calgary as one of five Canadian cities that will heat up commercially in 2018. The Alberta city made the list alongside Vancouver, Toronto, Montreal and Ottawa. The report indicates there is a sizable amount of capital to be invested in commercial real estate in these cities over this year and beyond, adding that the commercial sector will be both competitive and busy.
Drones are bringing deals into the 21st century in a big way. These days, investors interested in commercial real estate in Canada are able to get a bird's eye view of the properties in which they're interested thanks to flying contraptions called drones. In terms of real estate, it's marketing genius.
In a recent report, a real estate researcher has indicated that a small increase in office vacancies in Edmonton's downtown core may be promising news for the potential expansion of existing companies. That's good news for commercial real estate in the Alberta capital seeing that the Conference Board of Canada (CBC) is earmarking Edmonton for 17,600 jobs in the business sector come 2021. According to the CBC, that will cut the vacancy rate to about five per cent.
Cow Town's mayor Naheed Nenshi is not in the good books of small business owners lately. The mayor of Alberta's largest city has been at the helm of a hefty hike in property taxes for some small businesses, making the foray into commercial real estate difficult. Taxes have increased at other government levels as well, so many owners of small businesses are feeling the pressure, while the mayor is in the hot seat.
Building values in Edmonton are on the rise and that is readily apparent in the retail sector. Transactions in Alberta's capital were up 39 percent in the first half of 2017, showing a growing optimism regarding commercial real estate in the city. Data from a local real estate investment company shows sales are on the upswing. The retail sector is leading the way with $1.2 billion over all areas and up from more than $189 billion last year.
If the community of Lethbridge is any indication, business is starting to look much brighter. The Alberta community's industrial sector is starting to turn a profit once again. The commercial real estate market is beginning to look healthy.
As it struggles to remain solvent, Sears Canada has announced the closure of three stores in Alberta, leaving about 100 people jobless. This hardly a surprise for many in North America who have anticipated things would only get worse since its parent company in the United States has already closed hundreds of stores. However, for those monitoring local commercial real estate, the departure of the floundering department stores may not be such a bad thing.
Despite the waning popularity of malls and shopping centers, people in Alberta and beyond still love to shop. While online shopping may be surging, many folks continue to enjoy visiting brick and mortar stores to make their purchases. However, consumers seem to be ever looking for a more convenient shopping experience, and shopping malls and plazas may have outlived their usefulness, prompting developers to consider a new direction for commercial real estate.