how does their exit impact the canadian retail market?€¦ · retail vacancy rate to remain below...

FOR MORE INFORMATIONRoss MooreDirector, National Research604.662.5101ross.moore@cbre.com

Missing the Target.How does their exit impact the Canadian retail market?

Why did Target fail to connect in Canada?

What’s the impact on landlords/REITs?

Who will want Target’s space?

What does this mean for foreign retailers

considering Canadian locations?

Misunderstood Canadian shoppersLocation & product supply-chain issuesFiercer-than-anticipated competitionE-Commerce savvy CanadiansPhysical store constraintsIn-store and brand experience not the same, compared to US stores

Retail vacancy rate to remain below 5.0% in most Canadian cities

New opportunities for retailers to adjust their placement and for others to enter Canada

No reason for panic – burden is shared by multiple landlords

Target accounts for a small portion of REIT operating incomes

This decision says more about Target than it does the Canadian retail market

Canadian retail fundamentals remain relatively solid

Opportunities in a market that has offered infrequent openings in the past

Read CBRE’s Canadian Market Outlook 2015www.cbre.ca/marketoutlookcanada2015