REGINA RETAIL Research & Forecast Report - Colliers International
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Research & Forecast Report REGINA RETAIL Fourth Quarter 2018
City Market Overview
Market Overview characterized by little movement in the market. Limited
development opportunities and muted residential
The retail market in Regina for 2018 can be summed up
construction meant retailers largely contracted or held
simply as: slower yet stable. Economic conditions in
steady rather than expanding. Accordingly, the vacancy
Saskatchewan have been in flux for the last few years,
rate rose again in 2018 to 9.09%, the highest in the city.
however in Regina overall conditions appear to have
Like last year, most of the vacancy is due to Sears no
stabilized. Lower levels of home construction in the
longer occupying space the Cornwall Centre and
province and uncertainty surrounding the economy have
Centennial Mall.
left many retailers scaling back plans. Despite these
factors Regina’s retail market is continuing to grow as
In past years Regina’s downtown saw a resurgence in the
both new housing and retail construction can be observed
restaurant and pub scene, however of late expansions
across the city. The growth rate, however, simply isn’t at
have been more subdued. One notable exception was
the high levels seen in previous years.
Avenue, operated by the Grassroots Restaurant Group,
opening to the public in June in the historic Canada Life
In 2018 cannabis outlets became a significant factor for
building. Economic conditions and the challenges inherent
the commercial real estate industry with National
in the restaurant business will likely have an impact going
legalization last October. Six cannabis permits were
forward, though we expect local restaurants to continue
issued in the City of Regina with a total of 51 licenses
to look at Downtown Regina as a viable option.
throughout the province of Saskatchewan. The
privatization of liquor stores is also in full swing
H&M’s first Regina location opened in March 2018 at the
throughout Saskatchewan. The Saskatchewan Liquor and
Cornwall Centre. At the end of December 2018, however,
Gaming Authority retail outlets are slowly coming to
three national tenants at the Cornwall Centre, Roots, The
tender and being placed on the market for sale. The
Gap & Gap Kids announced closures. The trendy
impact of Sears’ Canadian bankruptcy last year, totaling
Cathedral Village neighbourhood centred on 13th Avenue
266,000 vacant square feet in Regina, is still impacting
remains stable and consistent for long-time businesses.
the retail market, though space is slowly being absorbed.
New in Cathedral for 2018 was a small outlet for 33 1/3
The overall vacancy rate rose to 5.01% in 2018 however
Coffee Roasters and With These Hands, a new handmade
Colliers is optimistic we will see a reduction over the next
goods store. Leasable spaces that come to market in the
year.
neighbourhood are very popular and tend not to remain
on the market for long. Elsewhere in Central Regina two
Central Regina cannabis retailers have opened, The Cannabis Co. YQR
Retail located in Regina’s central core can typically be
Inventory & Vacancy Historical Performance and Forecast
Inventory Vacancy
TOTAL (SQ. FT.) VACANT (SQ. FT.)
4,500,000 11,500,000 6.00%
4,000,000 11,250,000
5.00%
3,500,000 11,000,000
3,000,000 4.00%
10,750,000
2,500,000
10,500,000 3.00%
2,000,000
10,250,000
1,500,000 2.00%
1,000,000 10,000,000
1.00%
500,000 9,750,000
0 9,500,000 0.00%
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Central Northwest North East South
2 Research & Forecast Report | Fourth Quarter 2018 | Regina Retail | Colliers International
4
1
Victoria Avenue
Albert Street
Ar
co
la
Av
en
ue
3 5 6
2
Sobey’s Liquor at Southland Mall
and the national chain Tweed. In 2019 we expect two Notable Lease
new cannabis retailers, Lucid Cannabis and Avana to also
open in the area. Notable Lease Transactions
APPROXIMATE SIZE
ADDRESS TENANT
(SF)
South Regina 1. 2055 Prince of Wales Drive Games Workshop 801
South Regina’s retail consists of Albert Street and the 2. 4025 Albert Street Affinity Credit Union 3,422
newer Grasslands area in Harbour Landing west of 3. 3751 Chuka Boulevard McDonalds 4,307
Lewvan Drive. South Regina continues to remain strong 4. 3698 Victoria Avenue The Rostisserie 5,540
at only 2.19% vacant, down slightly from last year. 5. 3751 Chuka Boulevard Metro Liquor 7,175
6. 3751 Chuka Boulevard Save-on-Foods 37,060
The former location of The Nest on south Albert Street
has been filled by Has Beans Cafe, a combination pub and
coffee shop. Wiid Boutique, a Cannabis retailer has
located in a new strip on south Albert. Sobeys Liquor
opened its doors in June 2018 on a pad site at
Strathallen’s Southland Shopping Centre and Orange
Theory Fitness is expected to open nearby in early 2019.
One trend we expect to continue see across the city is
non-retail users presented with additional options to
locate in enclosed malls, alongside retail users.
Affinity Credit Union will be relocating its Hill Avenue LEASED
location to South Albert in 2019, moving to the former 3698 Victoria Avenue
CODA location at Royal Square. The Golden Mile
Shopping Centre, recently purchased by SmartCentres,
saw the opening Booster Juice, Fatburger, Dollarama and At Harvard’s Grasslands in Harbour Landing, Regina saw
Good Earth Coffeehouse in 2018 and Urban Cellars, a the opening of new national tenants such as Lindt,
liquor store, is expected in 2019. Across the street, a Starbucks, Gong Cha, Popeyes along with other local
nearly two-acre lot, the site of a former Esso gas station, tenants in 2018. The only existing vacancies in
was purchased and the deal will be finalized in 2019. The Grasslands are small bay retail. New food tenants such as
new development project will likely house a mixed-use The Meating Room and Meltwich are scheduled to open in
property to maximize the site. Future tenants will enjoy a 2019. Dream Development’s Harbour Landing Commercial
high visible location with high vehicular and foot traffic.
3 Research & Forecast Report | Fourth Quarter 2018 | Regina Retail | Colliers International
Campus completed Phase One in 2018 which provides additional 75,000 square feet is expected to commence in
flex space that may appeal to users who require a the next 12 months at the adjacent Forster Harvard-
substantial warehouse component alongside their retail owned development. At Acre21, 90,000 square feet out of
operation. a planned 200,000 square feet of retail is currently open
to shoppers and another 26,800 is expected in 2019.
The latest development, The Runway, is taking place on Tenants at Acre21 include Save-on-Foods, Shopper’s
the north side of Parliament Avenue. Sherwood Co-op is Drug Mart, Metro Liquor, McDonald’s, Boston Pizza and
currently under construction on a new grocery store. The Dairy Queen. Across the street, Revera completed
entire development calls for up to 100,000 square feet of construction in 2018 with service sector uses opening
strip and pad sites and the first phase should commence shortly thereafter. Future development will take place at
in 2019. South Regina will remain a strong option for Tower Crossing and Dream’s Eastbrook retail site.
retailers due to continued residential growth and strong
demographics. North Regina
North Regina, primarily on the north end of Albert Street,
East Regina continues to lag behind other areas in the city. Limited
The east side of Regina remained the largest focus for tenant activity and rent erosion continue to trouble
retailers throughout 2018. The year-end vacancy rate for landlords as demographic changes deter many national
east Regina sat at 4.27% which was a slight drop from retailers. Nevertheless, there are opportunities for tenants
2017. We expect the area to see a further reduction in
vacancy as the former Sears Home location is leased.
The former Home Outfitters added vacancy to the market
however Marshalls has taken the bulk of the space leaving
8,000 square feet available. The Victoria Square Mall
continues to see signification vacancy with just over
21,000 square feet available, accounting for 17% of the
overall vacancy in the east.
159 Albert Street
Choice REIT’s Superstore development added new
tenants in 2018, leaving only one small vacancy on the
main floor of the Eastgate Alliance Centre. Two large needing good access and high visibility. Properties such
absorptions took place on Quance Street, with the first of as 302 Albert Street and 159 Albert Street, provide open
two Urban Cellars, taking the space vacated by JYSK in development sites for strip centres, pad sites or drive
2016. Second, Nutrien Ag Solutions leased the bulk of the thru opportunities.
space at 3735 Quance St, which demonstrates the influx
of non-retail users into vacant space. Regina’s second Despite these challenges, North Regina has around
Tweed location is also set to open nearby in 2019. 46,000 vacant square feet and an overall vacancy rate of
3.97%. Of that space, Northgate Mall accounts for 21% of
Regina’s new Costco opened at Aurora in November, the vacancy. North Regina is a relatively stable and will
welcoming Regina shoppers to a larger store with an likely continue to remain so over the next few years.
abundance of parking and numerous gas pumps. An Established residential neighbourhoods in the area will
Sector Vacancies and Inventory
CENTRAL NORTH NORTHWEST EAST SOUTH
Vacant SF 331,444 45,985 20,639 128,023 49,157
Total SF 3,695,963 1,158,645 1,422,339 2,995,754 2,247,912
Vacancy 9.09% 3.97% 1.45% 4.27% 2.19%
New Inventory SF 0 0 5,000 269,086 0
4 Research & Forecast Report | Fourth Quarter 2018 | Regina Retail | Colliers International
Boulevard, which has undergone significant servicing
work but no other tenant announcements at this time.
Dream Centres continues to plan for a new grocery
anchored 67,000 square foot site along Courtney Street
in Coopertown. It is expected that as new residential
construction is underway in the next few years new
retailers will taken advantage of the growth. Elsewhere,
Forster Harvard’s Horizons retail area is a 675,000
square foot site set to service the west end of the city in
the Westerra subdivision. Here, Co-op opened a new gas
bar in 2018 and another 7,000 square feet of retail is
scheduled for completion in 2019.
Revera
3850 Green Falls Drive Conclusions and Forecast
Despite the closure of the Sears locations in 2017, 2018
saw good traction with larger spaces throughout the city.
We expect the trend of service-sector users and
experiential retail to be the important factors in helping
absorb excess space on the market. Overall the retail
market in Regina is healthy and rates in new construction
continue to be robust. New, quality spaces and locations
that are well maintained remain attractive to potential
tenants and typically do not remain vacant for long. There
is, however, contraction in lower quality space. In these
instances, landlords are forced to offer inducements to
3735 Quance Street encourage leasing activity.
continue to patronize existing retailers but the lack of Colliers is forecasting Regina’s retail market to remain
growth means that most new developments will look to strong with relatively low vacancy and stable rental rates
other areas in the city first. in the short term. Residents of Regina and area, with a
growing population of almost a quarter of a million, will
see noteworthy openings of food service brands and
Northwest Regina national retailers in 2019.
Northwest Regina continues to have the lowest vacancy
in Regina, a title it has held for many years. Vacancy in
2018 increased to 1.45%, primarily due to a flight to
quality property along Rochdale Boulevard. Nevertheless,
the vacancy rate remains low and will likely continue to
be so with limited speculative construction occurring.
On the whole, little development look place in the
Northwest in 2018. A new location for the Bank of
Montreal, will see two existing locations consolidated into
one, alongside a new Co-op gas bar which started
construction in 2018. Both new developments are in
Capital Crossing, at the eastern edge of Rochdale
5 Research & Forecast Report | Fourth Quarter 2018 | Regina Retail | Colliers International
413 offices in MARKET CONTACT:
Richard Jankowski
69 countries on Managing Director | Saskatchewan Brokerage
+1 306 664 1644
richard.jankowski@colliers.com
6 continents CONTRIBUTORS:
United States: 145 Robert Porter | Operations Manager| Research
Canada: 28 Coordinator
Joni Gaudette | Administration Coordinator
Latin America: 23 Marita Clark | Marketing Coordinator
Asia Pacific: 86
Colliers International | Regina
EMEA: 131 200 - 2505 11th Avenue
Regina, SK | Canada
+1 306 789 8300
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