Encouraging to see this item on a day a WalMart opens...
Downtown's near-zero vacancy rate mixed blessing
Darren Bernhardt, The StarPhoenix
Published: Wednesday, January 24, 2007
A near-zero vacancy rate for retail space in Saskatoon's downtown core is posing a challenge for companies wanting to set up shop.
On the other hand, the demand means a quick turnover for properties that do become vacant, such as the former Pacific Cinemas building on 22nd Street. A "sold" sign was recently posted on the four-plex, which might have sat empty in a cooler market, said Tom McClocklin, president of Colliers McClocklin Real Estate Corp., which handled the sale.
"Old movie theatre buildings are hard to deal with because they are built for a single purpose and have sloped floors," he said.
The building went on the market in September and garnered much interest, which surprised McClocklin. He couldn't identify the purchasers because a third party acted on their behalf. He's not sure what the plan is for the building, but he's confident "there's going to be a lot of investment.
"They paid a pretty good price for (it) and you don't do that to have it empty for long," he said. "That (turnaround) says a lot about our community."
"Downtown is tight as a drum right now. You can drive around and you won't find anything available," said Phill Elenko, president and managing partner of ICR Brokerage Inc. and vice-president of ICR Property Management lnc.
"I have clients who want to move to the core, but there's just nothing there. Without a healthy supply of space they'll go elsewhere."
There are still some holes left to fill, adjacent to the Galaxy Cinemas and next door to the Clinkskill Manor on 19th Street, which is presently a parking lot. The latter came as a package deal when the land known as Block 146, where the Galaxy sits, was purchased.
The owners of the property are coming to Saskatoon this week. They have suggested they want to build retail space along Second Avenue beside Galaxy. Elenko intends to meet with them "to find out if they're going to do it or not."
He's also trying to find a new downtown location for Canada Post, which is vacating its massive building at 23rd Street and Fourth Avenue. It sold the site to Vecima Networks Inc., a designer and manufacturer of communications products.
Officially, the retail vacancy rate in downtown is 0.9 per cent.
Demand is only part of the reason for the drop from 1.5 per cent in 2005. Retail spaces also vanished through the demolition of the former Extra Foods building on Third Avenue and the absorption by the provincial government of 14,000 square feet previously belonging to Tramp's books and music. The parking space that takes up the space left by the Extra Foods building is tentatively earmarked for a future office building, said Elenko, noting office space vacancy has also dwindled to about five per cent in the core.
Another former parking lot is being transformed into the new Affinity Credit Union, while a long-standing gap between Empire Theatre and GMG Jewellers is being filled with new construction.
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Originally Posted by article
The parking space that takes up the space left by the Extra Foods building is tentatively earmarked for a future office building, said Elenko, noting office space vacancy has also dwindled to about five per cent in the core.
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That's a new one. Until now it had been reported a boutique hotel or condo was the plan in that space. The plot unfolds.
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