SASKATOON RETAIL MARKET - Research & Forecast Report - Colliers International
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Research & Forecast Report SASKATOON RETAIL MARKET 2019
Economic Overview Emerging Neighbourhoods Becoming Retail Hubs
Economic indicators for Saskatoon continue to point toward The prominence of the retail nodes within emerging
sustained stability. Saskatoon’s GDP is projected to be in the neighbourhoods has fueled development activity since 2014
range of $23.1B resulting in year-over-year GDP growth of and 2019 was no different.
1.68%; this rate is expected to outpace the provincial growth of
1.1%. (Source: SREDA) Over the past 6 years, the retail sector has grown by nearly
12.8% as a result of new inventory introduced throughout
Saskatoon is expected to continue growing at an annual rate the City. Much of this inventory has been developed within
of 2% with the current CMA population estimated at 328,245. emerging neighbourhoods such as Brighton, Kensington, The
The City remains one of the youngest in the country with Hamptons, and The Meadows.
Saskatoon’s median age at 35.8 years; 5.4 years younger than
the national median of 41.2. Retailers continue to show a preference for new inventory
within emerging neighbourhoods. As new developments
Despite a relatively flat employment market that isn’t continue to establish themselves as retail hubs within the
anticipated to create much in terms of new job growth, market, existing corridors are witnessing an increase in
unemployment is projected to remain stable and in line with the available space as well as a softening in lease rates as they
national average at 6%. compete with the new inventory.
As a result of this shift, average asking rates softened within
existing retail corridors from $21.90 to $21.34 per square
Market Overview foot. In 2018, Colliers reported a 13% gap between advertised
The City’s retail market continued to grow as the sector and effective rents and in 2019 the gap has narrowed to 11%
expanded to 14.5M square feet. An additional 370,325 with most of this variance being accounted for by tenant
square feet of new inventory was introduced to the market. improvement allowances.
Year-over-year retail vacancy experienced a decline of 19
basis points to 4.61% with 385,817 square feet of absorption Asking rates within emerging neighbourhoods for new
inventory continue to hold steady starting at $28 per square
foot and escalating upwards to $36 per square foot.
Retail Sales Growth
Historical Overview
Fig. 1 - Average Asking Rates; price PSF per area.
Fig. 2 - Historical Overview; Vacancy vs. Net Absorption and New Supply.
2 Research & Forecast Report | 2019 | Saskatoon Retail | Colliers International
The Future of the Retail Landscape New Retail Tenants
In August of 2019, Colliers reported a study that examined
RETAILER LOCATION
how the spending habits of millennials would alter the retail
landscape. Restaurant and health & wellness spending were Pink Cadillac Hampton Village
two of the categories that witnessed a significant increase Tim Horton’s Hampton Village
in spending by millennials since the start of the century. Canadian Brewhouse Hampton Village
Restaurant spending has increased by 124% while health &
wellness rose by 111%. As a result of these spending habits, F45 Training Cory Commons
it is projected that more restaurant and fitness-related users Dollarama Cory Commons
will look to enter the market. The Keg Brighton Market Place
The report also stated that millennials spend 53% more on
A&W Brighton Market Place
restaurants than Canadians did in the same age cohort in
2000. This is a significant uptick highlighting millennials 7-11 Brighton Market Place
willingness to prioritize dining and socializing within their Motion Fitness Brighton Market Place
spending. As a result of a growing online shopping sector,
malls throughout Canada witnessed a decline in foot traffic Save-on Foods Brighton Market Place
and have begun to pivot their strategies to offer shoppers an Shoppers Drug Mart Brighton Market Place
experience including dining, entertainment, and the ability
Leopold’s Tavern Evergreen Square
to gather and socialize. A local example highlighting this
growing trend is the $80M re-development project currently Swan Pizza Evergreen Square
underway at Midtown Plaza. Influenced by millennials F45 Training Evergreen Square
shopping habits, Midtown strategically decided to redevelop Olive Garden Preston Crossing
the food court into a 42,000-square-foot hall. The modern
King of Donair University Heighs Square
space accommodates 16 vendors and aims to increase foot
traffic throughout the mall. Sobeys Liquour Lawson Heights
In regard to the trends within the health & wellness industry, Sobey’s Liquour University Heights Square
the Colliers report noted that spending within this industry is H&M Midtown Plaza
expected to hold steady and likely carry on with Generation
Z. As a result of these trends and long-term importance
Notable Retail Transactions
for health, it is anticipated that fitness related retailers will
explore opening locations in the coming years. LEASED LEASED
Brighton Hampton Heights
Motion Fitness The Canadian Brewhouse
Leased 40,000 SF Leased 7,000 SF
LEASED LEASED
Evergreen Square Confederation Park Suburban Centre
Leopold’s Tavern Anytime Fitness
Leased 3,200 SF Leased 7.000 SF
Research & Forecast Report | 2019 | Saskatoon Retail | Colliers International 3
400+ offices in MARKET CONTACT:
Richard Jankowski
68 countries on Managing Director | Saskatchewan
+1 306 664 1644
richard.jankowski@colliers.com
6 continents Alvaro Campos
Market Intelligence Coordinator | Saskatchewan
United States: 145 +1 306 664 1241
alvaro.campos@colliers.com
Canada: 45
Latin America: 23 CONTRIBUTORS:
Asia Pacific: 86 Keith Webb | Vice President | Sales Associate
Maxwell Lee | Sales Associate
EMEA: 131 Tanis Macala | Marketing Coordinator
Colliers International | Saskatoon
728 Spadina Crescent East
$3.3B Saskatoon, SK | Canada
US* in annual +1 306 664 4433
revenue
2B
square feet
under management
17,000+
professionals
and staff
*Based on 2018 results
About Colliers International Group Inc.
Colliers International Group Inc. is an industry leading global real estate services company with more
than 17,000 skilled professionals operating in 68 countries. With an enterprising culture and significant
employee ownership, Colliers professionals provide a full range of services to real estate occupiers,
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Copyright © 2020 Colliers International.
The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to
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