Shopping Centers Today

NOV 2018

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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N O V E M B E R 2 0 1 8 / S C T 49 where our phones would not stop ringing and a majority of the calls were from cannabis groups." The 420 Premium Market game plan is to pursue the 15 percent maximum market share Alberta allows. "There was a lot of strategy and effort put into the application process by our team as far back as a year ago, since the market is saturated and certain areas are high- ly desirable for multiple organizations, said Ryan Kaye, 420 Premium Market's vice president of operations.… Among site restrictions imposed by provinces and cities, Thompson says: there must be at least 30 meters (about 100 feet) between adjacent cannabis stores; stores must be located at least 100 meters away from schools; and none are to share a common boundary with any liquor store. In Edmonton, cannabis stores must be at least 100 meters from a park. Some companies have pursued applications in shopping malls — such as CF Chinook Centre, one of the busiest in Calgary — but 420 Premium Markets chose not to do that, says Kaye. "Being located in the mall could go against some of the outlined munic- ipal and federal restrictions, which is not a situation we would like to put our organization in," he said. Instead, the company's units tend to locate primarily in outdoor strip malls and boutique shopping areas. Calgary-based NewLeaf Cannabis, formed last year, intends to have 25 stores operating in Alberta. That prov- ince wants to prevent any mere handful of major players from dominating the market, so no company is permitted to hold more than 15 percent of the total retail licenses there. "You would have to get to 37 stores to get to 15 percent," said Angus Taylor, NewLeaf 's chief adminis- trative officer. "There are few enterprises shooting for that amount. But it's tricky, because each municipality has its own rules about location. Our intent is to have a minimum of 15 stores ready by October 17, and then 25 by the end of the year. We will be in eight locations throughout the province." NewLeaf did try for a presence in Saskatchewan as well, Taylor says, but that province has a lottery system for licensees, and NewLeaf failed to luck out. The company is considering locations in Ontario and British Columbia, the latter being a place that wishes to keep the market competitive, so no single operator is permitted to operate more than eight stores. The typical NewLeaf format measures about 1,500 square feet, though 420 Premium and some oth- ers say they plan to go larger — in the 2,500-to-3,000-square-foot range. As for where the Canadian cannabis market is likely to be in two years' time, "there is no question that when larger organizations move into the [Canadian] space, they will gobble up market share, up to provincial limits," said Rowland. "However, if we look at Colorado as an example, that will take time to happen." What cannabis operators anticipate, observed Abdelkader, "is that in two to three years, landlords will treat the concept the same way as liquor stores, which have become anchors in many shopping centers." Canada's legalization of recreational marijuana will spur a retail real estate gold rush, boosting demand and rent, predicts Edward Sonshine, CEO of mall landlord RioCan Real Estate Investment Trust. This will come, he noted, as retailers start "looking to stake a claim at the best locations, many of which we own." Q Calgary-based NewLeaf Cannabis, formed early last year, intends to open stores in Alberta alone 25

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