THE ASK
We need to define our niche in an ever-changing marketplace before launching a new project.
Our client, an international real estate developer, was in the pre-launch phase of a new development in the downtown core of Calgary. Given the rapidly changing real estate market and the unprecedented economic impacts of a global pandemic, a deep-dive into the Calgary market data was needed to analysis the current state, prior to launch.
Market Analysis: An in-depth analysis of relevant market data to get an understanding of the risk vs opportunity for a new development in downtown Calgary. This analysis will help to define:
1. Whether there is economic evidence that this is a viable project with a strong chance of success
2. Who the relevant target audiences are, and what their appetite is for a project of this nature
3. Subsequent brand positioning and brand messaging, based on the results of the above; with the end result of determining which niche this development is best targeted toward and how to engage with that audience segment.
Data Analysis of the following areas:
1. Calgary Statistics & Market Mood – Calgary Economic Development Report
2. Calgary | Economic Summary | Pre-COVID
3. Calgary | Economic Summary | COVID
4. Calgary | Historic Benchmark Price
5. Calgary | Year over Year and Historic Rental Values
6. Calgary | New Real Estate Reality
7. Calgary Purpose Built Rental Projects Concrete in the Core
8. Past 24 Months Lease Start to Stabilized
9. Calgary Rental Market Active Projects; Current State Analysis:
- Total Rental Market in Calgary – ACTIVE ALL MARKETS & TYPES
- Comparable Active Projects In the Core (competition)
- Summary for Amenities & PPSF
- Unit Matrix
Calgary | New Real Estate Reality
- 5 years of real estate sales volume and price decline
- Buyer confidence is eroded
- Rental demand is increasing as new elevated service level are established (SoDo)
- Renters, primarily millennials, see the ability to get what they want without the financial risk of ownership
Awareness Spring 2021 (COVID has changed lifestyle values):
- Safe & healthy lifestyle
- Proximity/convenience to essential services
- Small and contained communities / the creation/maintenance of a “social bubble”
- Spending more time within your home
- Cooking for yourself
- Working from home
- Online services (delivery, etc) very important.
Findings / Insights
- Limited high-end concrete rental opportunities in Calgary
- Very few comparable developments that offer the combination of location, amenities, size and professional marketing/leasing
- Size of units in planned development are significantly larger than the rest of the options on the market
- COVID has made the need for a ‘livable space’ more important than a lifestyle of urban proximity
- Urban essentials, such as grocery, liquor, walkability and self-sustainability are core values in the COVID era
