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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

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