The Value of Investing in Canadian Downtowns - International ...

Office Development
Private office space downtown has grown 6% (121,273 sf) between 2005
and 2010. The Discovery Plaza (2009) development reportedly sparked
renewed interest in building office space downtown, 6 with several office
buildings proposed.
Downtown Saskatoon also benefits from accommodating the head offices
for some large mining and engineering companies. For example, the
Potash Corporation of Saskatchewan has its Canadian Headquarters in
downtown Saskatoon, and in May 2011 BHP Billiton announced that they
are moving their Canadian headquarters to downtown Saskatoon. It is
important that the downtown be able to benefit from these major new
investments from the natural resource sector.
Private office space has increased
by 121,473 sf or
6%
51%
of downtown office space is
occupied by the public sector and
NGOs
Retail Development
Since 2005, retail growth in the downtown has been proportionally slower than growth in the suburban areas of the
city. Changing vacancy rates suggest downtown retail growth has been accommodated by existing spaces.
According to one interviewee, the less expensive retail space offered by the downtown was a key factor to increased
absorption and investment in the core over the past decade, as retailers have moved back to the downtown from
suburban locations to minimize rental expenses. Yet it appears the downtown has been so successful at attracting
new retail growth, that demand is exceeding availability. In 2010, retail vacancy was 2.2%, but in 2008 vacancies
dropped to a low of 0.2%.
Left: Side Walk Sale, Downtown Saskatoon
Below: 21 st Street Cross Walk (Midtown Plaza in
background)
6
Colliers International (2011). Marketing Report. Retrieved from:
http://www.collierscanada.com/en/~/media/Files/Research/2011/Saskatoon%20Office%20Real%20Estate%20Report%202011%20Q2.ashx. Accessed 2012
January 16.
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