Given Calgary's high level of disposable income based on the strength of the oil/gas industry as well as diversified economic base, the retail area is strong. Tenant demand for space is high even though 2,000,000 sq.ft. have been brought to market in the past several years. In terms of trends, regional and enclosed malls continue to change marketing strategy incorporating "big box" stores. Overall vacancy rates approximate 4.5% based on an inventory of over 18,000,000 sq.ft. in 122 buildings throughout the city.

A detailed breakdown of retail vacancy to April 2000 by shopping centre type follows:

Strip	Neighbourhood	Community	Enclosed Community	Regional	Total
4.9%	3.7%	1.5%	7.6%	6.6%	4.6%

Annual net rent rates by shopping centre type follows:

Of interest are what are considered Calgary's newest retail locations, those being South Trail Crossing in the south, the Sunridge lands in the north along with the redevelopment of North Hill Mall as well as Richmond Square. It is expected with this city's continued growth, vacancy rates will fall below 4% by the end of 2000.

FORECASTE

Calgary's retail market is expected to sustain positive growth during the next six months, with the continued strength of the local economy. The consistently low vacancy rate, combined with a shortage of prime development land, will likely result in continued upward pressure on lease rates in quality centres. Tenant inducements such as free rent and cash allowances are expected to be reduced in the newer centres, but will continue in older secondary centres.

Statistical Source: Colliers International April 2000 Retail Update.