Marcus & Millichap

Vancouver Retail Market Report

Vancouver, Second Quarter 2017

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Household Growth Spurring Retail Expansion; Investors Compress First-Year Returns

Retailers in the Greater Vancouver Area continue to announce expansions within the city of Vancouver and the suburbs to serve a growing number of households. Smaller. Smaller footprints in dense urban hubs, luxury shopping and cross-channel branding will dominate the area’s retail trends in 2017.

• Robust employment gains and housing starts will drive the Greater Vancouver Area economy to expand 3.3 percent in 2017. As consumption is a driver of economic growth, retailers’ expansions will occur near new high-density condos and apartments within mixed-use development.

• Grocery competition will heat up as international chains including Aldi, Whole Foods  and Wal-Mart look for new locations. Upscale retailers, including COS, Filson and Herschel, are also filling space within Vancouver’s Gastown and other popular spots throughout the area.

• Retailers who improve cross-channel and incorporate the “last mile” concept will appear to retain the ability to keep a brick-and-mortar presence. Success has come to retailers who provide the broadest product selection, fastest service, and most convenience within their fulfillment models. Whether through fast one day delivery, reserves in store, or brick-and-mortar checkout, retailers who offer the greatest combination of cross-channel convenience will gain market share.


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