Trend 5: Data (finally) Creates Value • Mobile marketing and point of sale interaction have revolutionized real-time consumer data collection • Major retailers will invest in turning their vast supply of consumer data into actionable strategy • Because each mobile device is unique, retailers will be able to track the patronage patterns of consumers in their stores • Near Field Communication between mobile devices and in-store signage in displays will reveal customer navigation patterns and product interests • Mobile payment technology will make it possible for consumers to provide feedback within seconds of a store visit
Combined, these five trends create a perfect storm of change: an environment where everything we knew about the sales and marketing of just about everything needs to be rethought. As consumers, this makes our lives more exciting in many ways.
The Power of Social Media • Social media is the number one activity on the web • Generations Y and Z consider email passé • The fastest growing segment on Facebook is 55 to 65 year old women
The Power of Social Media • 14% of people say they trust ads, while 78% trust social media peers • There are more than 200 million blogs, and more than half tweet or post content daily • 25% of Americans watched a short video on their phone last month • We no longer search for news – news finds us • Soon, products will find us too
10 Fundamental Trends that don’t change with economic uncertainty
1. Right now there are hundreds of thousands of new products, markets, industries and ideas being built and explored. The future isn’t over – its arrival has just been slowed down.
2. People want to talk about innovation, change, and the future
3. Green initiatives and energy maximization will have more daily significance (OIL is not the future)
4. Consumers want genuine engagement
5. Technology will continue to hyper- innovate… it’s the new fashion
6. Agility and flexibility will dominate and win the game Be PROACTIVE rather than REACTIVE!
7. The Internet continues to have a PROFOUND IMPACT on EVERYTHING we do !!!
8. BOOMERS are so NOT ready to retire… especially given the status of their RRSP’s
9. In a fast world, things happen faster! Innovation will drive us out of this faster than we expect!
10. BIG change comes from BIG ideas, sponsored by those who lead with BIG dreams We are living in Transformative Times
One day in the not- too-distant future, a headline will read:
ECONOMIC GROWTH RETURNS!
…JUST NOT IN THE WAY ANYONE EXPECTED!
ANTHONY COM RUSSELL INC
State of the Union
Four Horsemen of the Real Estate Apocalypse 2008 - 2009 Dropping Rental Rates ► Climbing Vacancies ► Rising Cap Rates ► Falling Loan to Value Ratios ► 92
Four Horsemen of the Real Estate Apocalypse 2010 Rising Rental Rates ► Dropping Vacancies ► Dropping Cap Rates ► Abundant Equity/Debt for Retail Investment ► 93
Calgary Retail Market Highlights Retail is alive and well! – Thriving ► Current market vacancy rate: 1.44% (October 2010) ► October 2009 vacancy rate: 1.71% ► October 2009 streetfront vacancy rate: 3.83% ► Current streetfront vacancy rate: 1.75% (October 2010) ► Inventory added in 2010 YTD: 487,407 sq. ft. ► Retail under construction: 615,300 sq. ft. ► Proposed retail to be developed: 8,069,500 sq. ft. over 19 ► projects 94
Calgary Retail Market Highlights 2010 annual retail stales in Alberta are projected to increase ► 0.6% Retail sales in Calgary are expected to increase 3.9% in 2010, ► and a further 7% in 2011 Monthly (July) retail sales in Alberta exceeded BC by ► $133,000,000 – annualized: $1.59 Billion Alberta has 810,000 fewer residents than BC ► 95
Per Capita Monthly (July) Retail Trade by Province 96
97 Streetfront Vacancy Rates
98 Calgary Retail Vacancy Rates
Rental Rates Relatively stable for the most part in Strip Centre (under 50,000 ► sq. ft.), and Neighbourhood Centre (50,000 – 100,000 sq. ft.). Increasing 3% to 12% across the board for the most part in ► Community Centres (100,000 sq. ft.+) and Regional Shopping Centres. Streetfront rental rates have dropped as much as 20% in 2009, ► however we are seeing the drop stabilize with notable streetfront projects seeing an increase. Tenant inducements (allowance/free rent) have decreased as ► rents increase 99
Proposed Retail Projects 19 projects currently proposed in Calgary ► Combined area of 8,069,500 square feet ► Summary by quadrant: ► NE = 2,750,000 sq. ft. SE = 2,593,000 sq. ft. ► ► NW = 2,325,000 sq. ft. SW = 401,000 sq. ft. ► ► 100
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