This Kelowna Project Set A New Rent Standard
Sopa Square has set a new precedent for retail lease rates in Kelowna, says Colliers' Meghan O’Mara (pictured here with her beloved pooch Benny). A new mixed-use development in the South Pandosy boutique submarket—with 38k SF of retail space, offices, and about 100 residential units planned—Sopa Square has pushed retail rates beyond $30/SF for neighbourhood centres. “It’s the first time we’ve seen inline CRU rents established in the $35 to $39 or even $40/SF range,” Meghan tells us. “It's turning heads."
The development is currently in receivership, with the receiver, Ernst & Young, acting as landlord as it seeks a new owner (Aquilini Development and Construction has reportedly put in a bid to buy and finish it). But Meghan stresses the complex is “open for business from a leasing perspective.” And tenants are coming. Two retailers have opened to date (Silent Noise Jewellery, and trü Frozen Yogurt Bar). Canadian Brewhouse just signed a deal for a 7,470 SF space at Sopa Square and Famoso Pizzeria opens next spring. Kelowna’s retail vacancy rate has increased to 6.97%, up from 4.5% in Q4 2013, due in part to this new product in the market place, Megan notes.