Calgary's 17th Avenue listed, but far from top, in rankings of costliest retail addresses
Paris' Champs Elysees first; New York, Hong Kong, London boulevards round out top five
By Mario Toneguzzi, Calgary Herald
CALGARY - Calgary's popular 17th Avenue S.W. shopping strip is cited in a global report on lease rates, but it's nowhere near as expensive as places such as Bloor Street in Toronto or Montreal's Ste. Catherine Street.
The Colliers International 2010 Global Retail Report released Monday said Paris's Champs Elysees is the world's priciest fashion retail corridor, at $1,255.90 US average lease rate per square foot per year, followed by New York's Fifth Avenue ($1,250), Hong Kong's Russell Street ($1,205.46) and London's Bond Street ($1,174.24).
Montreal's Ste. Catherine Street and Toronto's Bloor Street were tied at 32nd overall at $294.12. Vancouver's Robson Street was 51st overall at $196.08.
The report said Calgary's 17th Avenue S.W. saw average rents drop by 25 per cent from a year ago to $73.53 US.
"There was a lot of momentum built up with the transition from the more established retailers who have been there a long time and obviously that area has changed," said Rob Walker, vice-president and partner with Colliers International in Calgary.
"There's not a lot of space that comes up on 17th Avenue for lease and that drove the rates up, and when we had the worldwide (economic) slowdown, it certainly slowed significantly, and hence we saw a drop in the rental rates."
A report by Colliers in Calgary said 17th Avenue S.W. had a vacancy rate of 3.65 per cent in the spring, down from 5.51 per cent in the fall of 2009.
"17th Avenue continues to transition from local retailers to regional, national and international retailers," said the report. "Vacancy is expected to decrease marginally over 2010. Relaxed Beltline parking requirement bylaws will continue to contribute to the decreases seen in both the 17th Avenue and 4th Street districts.
"No new inventory is expected to be completed during 2010. However, construction on the new Hanson Square project anchored by Best Buy at 17th Avenue and 8th Street S.W. will commence during the summer of 2010, being the first new project on the bustling avenue in over three years."
Walker said Calgary is not just a mall-oriented city anymore, with "great retailing dollars to be earned from the street-front."
"Retailers have certainly done that in Toronto, Montreal and Vancouver. Historically they've shied away from that because of our weather, but at the end of the day, it's not that big of an issue," said Walker.
Regardless of what is happening in suburban shopping malls and on secondary streets, there will be strong demand for the No. 1 retail street in most markets, said Jim Smerdon, director of retail and strategic planning with Colliers International.
"When you look at who the retailers are on these streets in Canada, for the most part they're many of the same stores we see in regional shopping centres, but with a higher volume of sales, and in high street locations, they are willing to pay significantly more rent to be there," he said.
Ste. Catherine Street's average lease rate was unchanged from last year, while Bloor Street increased 7.14 per cent and Robson Street dropped by 16.67 per cent.
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Global Top 10
Average rent per square foot per year (U. S. dollars)
Retail strips 2010 Annual change %
Paris -Champs Elysees 1,255.90 2.04
New York -Fifth Avenue 1,250.00 -10.71
Hong Kong -Russell Street, Causeway Bay 1,205.46 1.30
London -Bond Street 1,174.24 51.66
Milan -Via Monte Napoleone 929.37 -1.33
Sydney -Pitt Street Mall 768.85 71.43
Zurich -Bahnhofstrasse 727.71 18.57
London -Oxford Street 719.70 27.69
Rome -Rome City Center 627.95 -3.85
New York -Madison Avenue 590.00 -21.33
Source: Colliers International
