Article
Saskatoon Retail Construction Shows Untapped Potential in Growing City
January 21, 2025 3 Minute Read
Saskatoon is having a major growth spurt. The city welcomed nearly 15,000 new residents between October 2022 and October 2023, pushing the Saskatoon Metropolitan Area population over 350,000. The city is increasingly popular thanks to Saskatchewan’s low cost of living, abundant job opportunities and a strong economy driven by agriculture, potash and uranium.
This population boom is having knock-on effects on real estate, especially on Saskatoon’s east side. Over the last few years the area has seen infrastructure, housing and retail projects spring up. Citylife Market, Saskatoon’s newest retail power centre, is the latest evidence of this transformation. The centre, spanning 177,610 sq. ft., is shadow-anchored by Saskatoon’s second Costco.
CBRE Saskatoon’s Ben Kelley represented both the vendor and the purchaser in the Citylife Market land transaction, which closed in late 2024.
“It’s a big deal for Saskatoon,” says Kelley. “Our retail market is tight, with vacancy currently at 3% because high construction costs have had the effect of limiting expansion. Citylife Market will help provide retailers with a new option and satisfy some pent-up demand.”
The new shopping centre will border high-income neighbourhoods such as Rosewood and Holmwood, where new residential projects are under development. Citylife Market will also connect to major highways and arteries, making it appealing to prospective retail tenants.
“It will give retailers an opportunity to establish their business in a fast-developing market,” says Kelley. “It’s on track to become one of the marquee power centres in the province.”
Spotting an Opportunity
The original vision for the project was a three-part retail development, but the third phase went in a different direction than expected.
Phase 1 was occupied by Costco in 2016. Phase 2, named Meadows Market, spans over 160,000 sq. ft. and was developed over the past 5 years. Kelley and his team were charged with selling and leasing the premises. Today, tenants include Marshall’s, Saskatoon Co-op Liquor, Sephora and Scotiabank. Less than 30,000 sq. ft. remains available for lease.
The developer, Arbutus Properties, set its sights on building Phase 3, a 177,610 sq. ft. power centre adjacent to Phases 1 and 2. “Arbutus is a boutique developer now focusing on multifamily and single-family residential and they had their hands full with other projects in the area. We saw an opportunity to find a group better suited to take on the project,” says Kelley.
Arbutus agreed to sell the project if Kelley could find a buyer quickly.
Sealing the Deal
It didn’t take long for Kelley to find the ideal client. Citylife Investment Corp., a local real estate holding firm with experience developing and operating retail properties, expressed interest in the site.
But there was a catch: Kelley had 90 days to secure an anchor tenant. “They didn’t want to buy 17 acres of raw land without anyone committed,” he says. “Not only did we have to put together the sale transaction for the land, but we had a short timeline to secure an anchor.”
Thankfully the land was already zoned for retail uses, a rare opportunity within the local market. This enabled the team to secure a national grocer as an anchor, taking over roughly 100,000 sq. ft. in Phase 3. As a result, Kelley was able to finalize the land deal between Arbutus and Citylife. The project is slated for delivery in 2025.
“This deal and development should serve as a reminder that Saskatoon is a city that shouldn’t be overlooked,” says Kelley. “It’s growing quickly and as more families move here, we’ll see retail opportunities increase. The key for real estate advisors is knowing where to look, aligning interests of various parties and ensuring the conditions are in place to help developments come to life.”
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