Apple Store Coming to Conestoga Mall
The latest commercial real estate news is the soon-to-be Apple Store in Conestoga Mall.
Benefit for Area Businesses
What are the implications for businesses in the area?
Yesterday we noted the positive effect that Apple in Conestoga Mall will have on adjacent businesses:
Having Apple as a destination tenant at Conestoga Mall is great news for all the other stores in the area – except maybe Future Shops’s Apple department – because people will head to the mall to check out the new toys at Apple, and they’ll inevitably browse around and grab food at adjacent businesses.
Also, it can be a negative for an authorized retailer, who now has to compete with the real deal
What does it mean for competing retailers like Carbon Computing? When Apple has come into similar communities, it has been hard for independent authorized retailers to stay in business and maintain a valuable point of differentiation.
Benefit for Landlord
What does it mean for the owner of Conestoga Mall, Ivanhoe Cambridge?
As we reported yesterday (in Apple Store coming to Conestoga Mall in Waterloo) there was a “$75 million investment into Conestoga Mall over the past few years.”
Does having an Apple Store in Conestoga Mall increase it’s value?
If a recent sale in Montreal is any indication, the answer is YES.
Montreal’s 9,007 sq ft Apple Store at 1321 Ste. Catherine Street West recently traded at $15,750,000 (or $1748.64 a sq ft)
To give you some reference for how expensive that valuation is, the Vaurdreuil Shopping Centre near Montreal recently sold for $25,400,000, and its a 118,330 sq ft new format shopping centre with a Canadian Tire, Staples (Bureau en Gros), Golf Town and more. This traded at $214.65 a square foot.
Bringing Apple to Conestoga Mall will increase sales of other stores in the mall, will attract even better tenants to the mall as space become available, and increases the desirability and prestige of the asset if Ivanhoe Cambridge decided to sell it.
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