With a retail vacancy rate of 1.97 per cent, the lowest in Saskatchewan and perhaps in North America, Saskatoon is also on track for record retail sales this year.
A report from ICR Commercial Real Estate notes that national and international retailers are flocking to Saskatchewan's largest city, driving lease rates higher and vacancies lower.
Saskatoon has the lowest retail vacancy rate in the province, followed by Regina at 2.52 per cent, North Battleford at 3.08 per cent, Prince Albert at 3.60 per cent, Yorkton at 3.89 per cent and Lloydminster at 3.94 per cent, according to ICR market research analyst Alvaro Campos.
The ICR report said a number of retail projects are well underway in the city, and many will come on stream this year.
Two Target stores, for instance, are scheduled to open this spring/early summer in Saskatoon. Redevelopment costs are pegged at $10 million per location.
ICR projects Saskatoon's retail market will continue to be tight in 2013, with vacancy rates remaining around 2 per cent. Low vacancy rates will mean higher lease rates, according to the report.
Average retail lease rates for 2012 rose by 8 per cent, and this trend will continue in 2013, ICR states. New retail developments are expected to attract lease rates in the range of $25 per square foot to $33 per square foot.
from Western Investor June 2013
