Vancouver's enclosed retail sector is undergoing a boom with a dozen malls across the region either being built or expanding.
Retail analysts say that it has been a long time since there has been so much activity in the enclosed mall retail sector but that the renaissance in new space does not necessarily mean that there will be a glut of retail space or that current retailers will suffer lost sales.
New malls, such as the outlet-style mall that the Vancouver International Airport Authority and McArthurGlen Group are planning to build near Vancouver International Airport, target a new niche and lure shoppers that might normally have shopped at a conventional regional mall, said Thomas Consultants managing principal and retail consultant Michael Penalosa.
"They're creating a new destination," he said. "Sure, there's more retail, but they're trying to grab a new type of customer segment- one which is looking for specific goods at a specific price point."
He pointed to Colliers International statistics released earlier this year showing that Vancouver has comparatively little enclosed retail square footage per capita compared to Toronto. The study showed that Toronto has 24.11 square feet of mall and power centre retail space per person. In Vancouver, there is only 13.73 square feet of mall or power centre retail space per person.
Much new square footage is also planned around rapid transit.
TransLink recently confirmed that there will be an Evergreen Line station at Coquitlam Centre. That prompted Morguard Investments Ltd. and Pension Fund Realty Ltd. to confirm plans to get approval to build an extra 100,000 square feet of retail space at Coquitlam Centre.
Morguard has yet to declare plans to expand its Burquitlam Plaza, which will also be next to a future Evergreen Line station.
Expansions at malls that are close to rapid transit also include projects at Lougheed Town Centre, Aberdeen Square, Brentwood Town Centre and Oakridge Town Centre.
Oakridge already has city approval to add 350,000 square feet of retail space, but owner Ivanhoe Cambridge wants to transform the mall's 11.5-hectare site into more of a community.
Vancouver city council recently approved Ivanhoe Cambridge's ability to move to public consultation with a proposal for significant expansion that would include new condominiums, office space, a library, parks and bike paths. "If there's no growth in population and no growth in income, then technically existing stores will have lower sales," Penalosa warned. "Presumably, consumers will be shopping at the new places, which will be capturing dollars that used to go to conventional shopping centres."
Oakridge Town Centre
Owner: Ivanhoe Cambridge
Address: 650 West 41st Ave., Vancouver
New sq. ft.: 350,000 confirmed but proposing more
Completion: In phases until 2019
Investment: More than $100 million
Major tenants: Crate and Barrel
Park Royal Village
Owner/developer: Park Royal Shopping Centre Holdings Ltd.
Address: corner of Marine Drive and Taylor Way, West Vancouver
New sq. ft.: 120,000
Completion: Fall 2013
Investment: Undisclosed
Major tenants: Undisclosed
Tsawwassen Mills
Owner: Ivanhoe Cambridge and the Tsawwassen First Nation
Address: Near Highway 17 and 52nd Street
New sq. ft.: 1.2 million
Completion: 2015
Investment: Undisclosed
Major tenants: Undisclosed
Tsawwassen Commons
Owner: Property Development Group
Address: Highway 17 and 52nd Street
New sq. ft.: 550,000
Completion: 2015
Investment: $130 million
Major tenants: Undisclosed
Richmond Centre
Owner: Cadillac Fairview Corp. and Ivanhoe Cambridge
Address: 6551 No. 3 Road, Richmond
New sq. ft.: No new sq. ft. but renovating 75,000 sq. ft.
Completion: Mid-2013
Value: $30 million
Major tenants: Undisclosed
McArthurGlen Group outlet mall
Owner: Vancouver International Airport Authority and McArthurGlen Group
Address: Will be off Russ Baker Way on Sea Island
New sq. ft.: 340,000
Completion: 2014
Investment: Undisclosed
Major tenants: Undisclosed
Aberdeen Square
Owner: Aberdeen Project Thirteen Ltd.
Address: 4000 No. 3 Road, Richmond
New sq. ft.: 250,000
Completion: End of 2012
Investment: $100 million
Major tenants: Royal Bank of Canada
To see the full list of malls, visit biv. com.
