Vancouver malls a potent commercial real estate investment

by Ephraim Vecina on 16 Jan 2017
In its latest report, the Retail Council of Canada announced that Vancouver plays host to some of the country’s best performing malls in terms of sales revenue.
 
As of the year ending August 31, 2016, Vancouver’s Oakridge Centre was the second most productive mall in Canada, earning $1,537 per square foot. Meanwhile, the CF Pacific Centre ranked third nationwide with $1,523 per square foot.
 
Four other malls in British Columbia qualified for the Council’s list of 30 most profitable malls in the country, Business in Vancouver reported. Coming in at number 8 is Metropolis at Metrotown ($1,035 per square foot), while the 13th slot was occupied by CF Richmond Centre ($928 per square foot).
 
Guildford Town Centre ranked number 21 ($844 per square foot), and Coquitlam Centre came in at number 27 ($785 per square foot).
 
The Council’s study found that the Yorkdale Shopping Centre in Toronto had the greatest sales per square foot last year at $1,650.85. The overall revenue-to-space ratio in Canada’s malls stood at an average of $744, up from $733 in 2015.
 
A leading driver for this strong performance in Canadian commercial real estate is the far lower per-capita mall space compared to other major economies like the United States. Also, higher product costs due to taxes and duties help Canadian malls earn more, the Council explained.
 
Supermarket-anchored malls “are an incredibly defensive industry, and if there’s a recession looming around the corner, then you can bet that people will still be heading to their local supermarket to get a week’s supply of groceries,” The Motley Fool Canada explained in a recent analysis. “People still have to eat, and this will never change, even during the harshest of recessions.”
 

Post a Comment

Most Trending News

The best place to buy a rental property in Canada: 2021
News

You want the biggest bang for your buck so here are the best places in Canada to buy a rental property, and the best types of properties (including vacation homes!).

Read More
Strategies to Predictably, Reliably Grow Your Real Estate Business
News

This 7-day free masters summit will provide you with all the tips and tricks you need to get started in real estate investing, how to expand your real estate portfolio, and much more.

Read More
June virtual conference promises to turn agents into millionaires
News

“The easiest way to prove to people you can help them is to just start helping them, no strings attached,” said Craig Proctor, the master realtor who revolutionized the team concept.

Read More