Buyers have been found for four properties that used to be home to Hudson's Bay department stores.

Court records filed this week show the defunct retailer and its ex-property partner RioCan Real Estate Investment Trust have takers for their downtown Calgary, Ottawa and Vancouver sites, as well as a location at Devonshire Mall in Windsor, Ont.

Astra Real Estate Corp. wants the 8th Avenue location in Calgary, a numbered company linked to Claridge Homes is after the Ottawa site on Rideau Street and Onni Development Capital Corp. is eyeing the former store on Granville Street in Vancouver. Meanwhile, Circle Retail Properties LP wants the Devonshire Mall site on Howard Street.

A receiver, which was appointed to take control of the HBC and RioCan joint venture last year, says it will ask a court next week to approve the Ottawa sale and seek permission for the other transactions soon.

Court filings do not show what the buyers have offered to pay for the properties, nor what they will do with them.

The filings were made around the same time as Brookfield Properties and Larco Investments applied to the City of Toronto to turn the upper floors of a former HBC site on Bloor Street East into a self-storage facility. HBC closed its property at that location years before the retailer filed for creditor protection in March 2025.

This report by The Canadian Press was first published May 1, 2026.

Anthem Properties Group Ltd. is moving forward with its Glenmore Yards development in Calgary, four years after acquiring the 95-acre brownfield site from Prudential Steel ULC.

The first phase includes 438,300 square feet of industrial space across three buildings on 20.8 acres in partnership with Vernon-based Arrowleaf Real Estate Holdings Ltd.

Two buildings will feature small-format bays of 7,400 to 11,000 square feet, touted as ideal for businesses requiring showroom space with retail exposure, while a third building will provide medium-format warehouse space with bays of 14,300 square feet designed to serve a wide range of operational needs.

“Calgary has long had consistent demand for modern, small‑ to mid‑format industrial space, but supply at meaningful scale has been limited,” said Sean Day, vice-president, Industrial, with Anthem Properties Group.

A key barrier of such projects is a higher cost relative to large-format developments, which is where the partnership with Arrowleaf provides valuable support. The two companies have an existing partnership to develop Arthur, a 254-unit multi-family rental project adjacent to Mount Ruoyal University in southwest Calgary. The experience to date gave Anthem the confidence to invite Arrowleaf to partner on the current project.

“Anthem regularly partners on development and income‑producing assets to diversify capital, reduce risk, and expand across markets,” Day said. “Anthem and Arrowleaf share investment goals, entrepreneurial culture, and Western Canadian roots, making this a natural and, more importantly, valued repeat partnership.”

Arrowleaf, which is seeking to diversify its portfolio beyond retail-oriented assets, was game. It saw an opportunity to redeploy capital from recent asset sales towards a larger project in a growth market.

“Industrial fundamentals in Calgary remain compelling, but the margin for error is tighter than it’s been in years,” said Arrowleaf chief operating officer Robert Harrison. “That makes trusted partnerships essential. Working alongside Anthem allows us to combine local market insight, development expertise, and a shared long-term perspective to manage risk thoughtfully and deliver high-quality space where demand is real and durable.”

Both projects with Anthem are set to complete next year, promising a quick turnaround with a view to cash flow in the near term alongside long-term market growth.

While pre-leasing at Glenmore Yards has begun, no deals have been signed. The strategic location of the site at the intersection of Glenmore Trail and Barlow Trail makes it ideal for what Day called “showcase industrial.”

“Tile and flooring, granite, furniture, appliances, plumbing and HVAC equipment,” he explained. “You’ll have a showroom in the front where your product is displayed, and then it’s warehoused and distributed in the back.”

The development is also a short distance from the proposed South Hill transit station on Calgary’s planned Green Line LRT, which will bring the area within the ambit of workers.

One of the largest industrial land parcels in southeast Calgary, the site was formerly home to a plant producing welded steel pipes for the energy sector. Prudential Steel closed the plant in 2020 citing capital budget cuts in the oil and gas sector, foreign competition and the economic downturn flowing from pandemic-era restrictions.

Glenmore Yards will be built out in four phases totalling 1.7 million square feet of warehouse, flex office/industrial space and ancillary retail.

The development will nearly double Anthem’s existing industrial portfolio in Western Canada of 1.8 million square feet.

The first phase will also boost Arrowleaf’s existing industrial base of 1.3 million square feet. Arrowleaf has not committed to partnering with Anthem on future phases, but is open to doing so in line with market conditions and other factors.

In addition to the venture with Anthem and its own holdings, Arrowleaf partnered with Upfield Capital Management Ltd. last year on the acquisition of a 206,0000-square-foot Home Depot distribution centre with 7.5 acres of vacant industrial land in Edmonton’s Acheson industrial area for $55.15 million.

TORONTO —

As Toys "R" Us Canada prepares to ask a court for permission to put the business up for sale, it's closing at least two more stores.

The chain has notified the landlords at the St. Laurent Centre in Ottawa and Woodgate Plaza in St. John's, N.L., that its stores there will soon close, its chief restructuring officer Neil Taylor said in court documents filed this week.

The filings show Toys "R" Us Canada will hand back both of those properties to landlords as well as two more locations it already closed at the Niagara Pen Centre in Ontario and in Vaudreuil-Dorion, Que.

The closures are part of the retailer's creditor protection process, which began earlier this year when it was having trouble coping with its mounting debt and lawsuits from suppliers and landlords.

A judge gave the company permission last month to conduct liquidation sales at some of its remaining 22 stores. In the two years leading up to its creditor protection application, it closed 53 stores across Canada.

The retailer will head back to court next month to get permission to launch a sales process for the business.

An affidavit from Taylor argued that sales process is "the best available option to maximize" what value is left in the company for stakeholders. It said the company will continue to operate like normal while marketing itself to buyers.

If a court gives the go-ahead, filings show anyone interested in buying the business or its assets will make bids in May before Toys "R" Us Canada will choose one or more buyers in June.

It will aim to close on any deals it reaches by July 13 — the same date the company will ask a court next week to extend its reprieve from creditors until.

A Toys "R" Us Canada spokesperson and several lawyers representing the firm did not respond to a request for comment about the new filings.

The retailer has been owned by Putman Investments since 2021, when the Ancaster, Ont.-based company bought Toys "R" Us from Fairfax Financial Holdings Ltd.

Fairfax paid $300 million to rescue the company and Babies "R" Us Canada in 2018, when it filed for creditor protection after the separately-run American arm of Toys "R" Us sought bankruptcy protection.

Putman also owns retailers HMV, Sunrise Records, Ricki's, Cleo and Northern Reflections and previously operated a chain of home goods stores called Rooms + Spaces and many T. Kettle tea shops. Rooms + Spaces and T. Kettle have closed all their stories.

This report by The Canadian Press was first published March 27, 2026.

As cities across North America continue to deal with office space made surplus when remote work arrangements became mainstream during the pandemic, the concept of converting office buildings into other uses has been much discussed. In reality, however, office conversions have only taken off in a few small pockets.

Return-to-office is still being sorted out but a bifurcation in the office market is clear. Upper tier space (Class AAA and A) remain strong, while and lower Class B and C space is bearing the brunt of the struggles in most markets.

As one example, vacancy rates in AAA, A, B and C buildings in Vancouver were all just below 5 per cent in the third quarter of 2019, according to data published by commercial real estate services firm Avison Young in mid-January. Following the fourth quarter of 2025, the vacancy rate of AAA and A buildings are both around 9 per cent, while the vacancy rate of B and C buildings have shot up to 12 per cent and 16 per cent, respectively.

This is the so-called “flight to quality” and it’s a trend that can be seen in most of the major office markets in Western Canada in varying degrees. The question for office landlords, then, is what to do with those B and C buildings.

CALGARY

Calgary is ground zero for office conversions, not just in Canada, but across North America, with about 2.7 million square feet of space across 21 office buildings converted or in the process of being converted. Calgary had a head start, however, as its office market slumped along with the energy sector in 2015, with office vacancy peaking at over 30 per cent. In response, the City of Calgary created a suite of downtown conversion incentives, offering $75 per square foot of office space converted.

“We’re actually seeing conversions across the entire downtown market,” said Walsh Mannas, principal with Avison Young’s capital markets group in Calgary. “We have some very obsolete buildings that are natural conversions, but if the opportunity presents itself with a building like Chevron [Plaza] that’s a higher-quality building but ended up in a scenario with 100 per cent vacancy, that is also being looked at by converters.”

According to Mannas, any office building with a significant vacancy is being examined for conversion. In recent years, large institutions have been selling their office assets in Calgary, creating a “generational opportunity” for smaller private firms to snatch up assets they may not have ever been able to touch if not for the current market dynamics. A small handful of groups have homed in on conversions, but there is a decreasing number of available assets as a result of elevated transaction levels in recent years.

“There’s been a flight to quality for years, so those higher-quality AA or A buildings that have been greatly improved are seeing greater success,” said Mannas. “And more often than not, those landlords are willing to build out turnkey spaces for these tenants, and that is what you need to compete in the financial core office market. There is still demand in the West End, where 90 per cent of our conversions are taking place, but the story is a bit different there. Those tenants are smaller, they can be private firms, they’re 2,000 to 8,000 square feet – they’re not building out the same quality of space and the same quality of amenities, but you are still improving that space.”

Municipal elections were held in October, and a few cracks emerged after some councillors voiced opposition to the incentive program, with concern about whether it is the best use of taxpayer dollars, although newly elected Mayor Jeromy Farkas voiced support for it and downtown revitalization.

EDMONTON

In fall 2023, facing an office vacancy that was rising past 20 per cent, Edmonton began exploring its own office conversion incentive program. An incentive program offering $100 per square foot was discussed, but ultimately did not come to fruition after the city was unable to find funding for the program.

There are still a few conversions happening, such as the partial conversion of the Phipps McKinnon building and Standard Life Centre by Josan Properties and Leder Investments, respectively. Most office landlords have not been able to fall back on conversion as a repositioning strategy, however.

“Ultimately, I think the reason these investors aren’t going ahead with conversions at the same pace as Calgary developers are is just the high cost,” said Reed Newnham, principal with Avison Young’s capital markets group in Edmonton. “There’s large risks with these ’60s and ’70s vintage buildings.”

Considerations include the floor plate and the right configuration of mechanical systems, plumbing, HVAC – all of which can easily cause the cost of development to spiral far beyond the original budget.

“That’s why we’re seeing most of our investors look to just reposition, add amenity space, and increase the ability of that building to compete,” he added, noting that show suites – units that are fitted out and turnkey – have been a strategy landlords have used in both Edmonton and Calgary. “There’s a lot of options on the market, so any tenant who’s cost-conscious and looking in the Class B and C inventory – as a landlord you need to find a way to differentiate your space and your offering.”

Discussions of an incentive program have died down, but it’s worth noting that Edmonton’s local election in October saw Andrew Knack elected as mayor, and Knack was the councillor who led the push for the incentive program two years ago.

REGINA AND VANCOUVER

Two other notable Western Canada markets are Regina and Vancouver, and they’re notable for the same reason: both have remained relatively stable, albeit on drastically different scales.

“Pre-pandemic to today, there hasn’t been a whole lot of change,” said Linely Schaefer, Avison Young’s managing director in Regina. “We’ve always had vacancy in our market. We’re a government-driven town, so all of our A space is basically occupied by the government and various other privates. Our vacancy is in the mid-teens, with a healthy market being around 9 per cent. Do we have a ways to go? Sure. Do we have huge blocks just sitting there? Other than one or two, there’s not … We’re Saskatchewan: no peaks, no valleys. Just steady going.”

Regina actually has an office-to-residential conversion incentive program of its own, offering the same $75 per square foot that Calgary offers, but Schaefer said little to no conversions are happening because few of the buildings are suitable for conversion and the cost of constructing a brand new building is not as high as it is in other markets.

Vancouver is a significantly larger market and its vacancy rate has risen in recent years, but its vacancy rate remains one of the lowest in North America. There’s been some flight to quality, but the gap between the upper echelon and lower echelon of office buildings is not as drastic as it is in some other markets.

“One important aspect to bear in mind in the Vancouver market is that although a lot of tenants would like to fly to quality, we don’t necessarily have enough A and AAA space to accommodate them,” said Avison Young’s Michael Emmott. “This market in some ways is short on that very upper echelon of office building, which I think is part of the reason why we’re not seeing some of the B and C buildings empty as fast as perhaps in other markets. There’s still demand for B and C buildings. Not everyone is willing or able to afford the rents and operating costs for the highest-standard office.”

As there have been much less vacancy to work with, Vancouver has seen very few office-to-residential conversions in recent years. What Vancouver has seen, however, as the municipal government pushes for more hotel rooms, is some office-to-hotel conversions, such as Reliance Properties and Germain Hotels’ conversion of 1111 West Hastings.

“Pure residential conversions have not, at this stage, been encouraged,” said Emmott. “We’re also not long on vacant buildings yet, and it does take a significant amount of time to empty an office building. Unless you have a single tenant expiry, you would probably have to live through several years of vacancy in your building as tenants empty one by one, and that can be a very expensive process.”

Office conversions are therefore largely dependent on local market conditions, and a function of necessity rather than choice. And as 2026 unfolds, Avison Young’s experts all see stability and upside for their respective markets, with flight to quality persisting and landlords continuing to find ways to reposition their buildings, with or without conversions.

Four days before Christmas, shoppers lined up around the Bay Centre in Victoria, B.C., where a corner of the mall had been transformed into a scene reminiscent of a London high street.

In the windows, animatronic bears and groundhogs in aprons and chef's hats toddled around. Inside, Santa rode in a hot-air balloon hanging from the ceiling while an old-timey train display offered a rainbow of sweets and other delicacies and shoppers perused toys under a canopy of foliage.

"We put great effort into creating the magic," recalled Ryan Townsend, whose new department store Sabayons was responsible for the holiday whimsy.

The business has been breathing new life into a property that just a year ago was on the verge of being dark and empty.

Canada's oldest company Hudson's Bay filed for creditor protection on March 7, 2025, under the weight of $1.1 billion in debt. The move kick-started a complex legal process that's still ongoing as the 355-year-old business winds down, and resulted in the closure of its 80 stores and 16 more under its sister Saks banners.

A year later, a Canadian Press analysis has found the vast majority — at least 73 former Hudson's Bay or Saks stores — are still empty, though a few of those have tenants preparing to move in. Some of those sites were once among the country's most prized shopping properties — along the stretch leading up to Toronto's Eaton Centre, by the ByWard Market in Ottawa and in the hearts of downtown Vancouver, Montreal and Calgary.

Other properties have already sprung back to life because of newcomers like Sabayons or mall regulars taking advantage of HBC's demise to spur their own growth.

The Canadian Press counted 14 former HBC and Saks properties taken over by YM Inc. brands Urban Behaviour and Urban Planet, three now home to Continental discount clothing stores and three hosting Designer Depots.

A Zellers reboot has moved into part of the ex-HBC space at Londonderry Mall in Edmonton and Goodwill has replaced Saks Off Fifth on the Queensway in Toronto. Furniture stores Nuevo and Accents@Home have each taken over one property in Quebec and Alberta, respectively.

The patchwork of tenants is a reminder that there isn't a one-size-fits-all solution for these massive, complex spaces that have rarely hosted anything other than a department store since their inception.

With the traditional department store model waning as more people shop online and brands increasingly open their own stores to sell directly to consumers, landlords now have the unenviable task of luring in the few businesses still wanting mammoth properties or reimagining the properties completely.

That many of the properties are still vacant doesn't indicate a lack of effort on the part of landlords, said Don Gregor, an executive vice-president at Aurora Retail Group.

"When I'm talking to people like Oxford, Cadillac Fairview, Primaris, for example, they're still working on logistics, on how to use or break up the space," he said. "I think they're going to have some serious ideas by the end of the month ... but it's not going to be easy."

The largest HBC and Saks locations are mostly stand-alone, downtown properties that take up full city blocks with square footages around 600,000, but even some of the smaller properties will be hard for a single tenant to fill. HBC and Saks were often anchor tenants at malls, meaning they got prime, multi-level real estate and low rent fees in exchange for drawing foot traffic.

A January report from real estate firm JLL said the average mall lease in Canada sits at roughly 3,700 square feet. On average, HBC used 152,000 square feet per store, or roughly 40 times the space of your average shop.

Exacerbating the search is the fact that anyone who has wanted a property of HBC's size has had no shortage of options. The collapses of Sears, Target, Nordstrom and now Toys "R" Us in Canada have left many massive properties in prime shopping districts available even years after the retailers' departures.

"The very last of the Target locations was probably just leased in the last year," Gregor said, referencing the U.S. business that left Canada in 2015.

And many of them were in much better condition than HBC's sites, which were sorely in need of repairs to roofs, elevators and escalators, washrooms and heating, ventilation and air conditioning systems, court documents have said.

Much of that work couldn't start the moment HBC filed for creditor protection on the brink of March break because the company was still trying to find a Hail Mary solution that would keep six stores open and when it failed, its locations didn't close until June. Even when they did shutter, they still had to be emptied of fixtures and furniture and HBC had to renounce their leases before landlords could let anyone else move in.

At some sites, those tasks were completed within a few months, but it took longer at many others because HBC hung onto dozens of its leases in hopes of selling them to recover some of the $1.1 billion it owed creditors.

Billionaire Ruby Liu bought three leases in B.C. malls she owns for $6 million in June, and YM scooped up five for $5.03 million in July, when Ivanhoe Realties Inc. bought back one of the leases its parent company owns for $20,000.

But perhaps the biggest delay came from HBC's bid to sell Liu's company Central Walk 25 other leases for $69.1 million. The deal announced in May left stores empty all summer while the retailer battled landlords arguing Liu was ill-prepared to deliver on her plan to open self-named department stores with entertaining and dining spaces in their malls. It wasn't until October that a court blocked the sale, prompting HBC to start turning those properties back over to landlords in November.

Liu has yet to open stores in the ex-HBC and Saks properties at her three malls, despite once claiming she could have 20 operating within 180 days of buying leases. Spokespeople for Liu's company Central Walk did not respond to requests for comment on whether she still plans to open her own chain of department stores.

Central Walk's Mae Wang said in an email to The Canadian Press that the company is "working on plans for the space and have received strong interest from a number of well-known brands." She did not say whether Liu still plans to open her own chain of department stores.

Ryan Townsend, who also owns seed-purveyor-turned-boutique-grocer Market Garden, never doubted he'd make good on the ambitions he'd been harbouring for years before HBC collapsed and he opened Sabayons.

But by the time he pitched HBC about taking over the top floor for a gourmet food hall, the company was on the eve of filing for creditor protection.

Anxious not to let the opportunity pass him buy, Townsend bought truck trailers, shelving, lights and just about any fixtures he could get from HBC while trying to convince the Bay Centre to let him move in.

In late August, while he roamed Europe for merchandise, it became official: He had a lease for HBC's ground floor.

Townsend got to work: a blacksmith made trees for the toy department forest, an electrician crafted the train and animatronics were ordered from France. Massive gift boxes meant to block out the escalators and ballerinas made out of HBC's old yoga mannequins and crepe paper were also constructed and installed.

Everything came together just in time for Sabayons to open in the home stretch of the holidays

"In four days, I think we had it was over 25,000 people that went through the store, and we wiped out over half my inventory," Townsend said.

While his shelves were emptying, RioCan Real Estate Investment Trust signed a lease that will see Nations Experience move its grocery store, food hall and entertainment space into the former HBC location at Oakville Place, west of Toronto, by early 2027.

At the Shops at Pickering City Centre, Splitsville Bowl is due to move into the ex-Saks Off Fifth space by fall 2026 — and the company's managing director hinted that might not be the last Saks it takes over.

"We've got a number of different opportunities that we're currently looking at across Canada where previous Saks and Hudson Bay's sites have been that we've been offered by landlords," Andy Johnson said. "Hopefully, we can make some of those work."

JLL has predicted 65 per cent of HBC's vacant retail space will be committed to new retail tenants within two years but says the majority of the units will take multiple tenants to fill. Twenty-two per cent will likely be redeveloped, perhaps into the condos, offices and community hubs landlords mused about while fighting Liu's push to move into their properties.

One of the most dramatic reimaginings could come in Montreal. Cree organization the James Bay Eeyou Corp. and real estate developer JHD Immobilier want to spend nearly $400 million turning HBC's former Ste-Catherine Street store into a fur trade museum, Indigenous cultural centre and a hotel complex opening by 2029.

"We see this project as a way to give the building new life while preserving its soul," said Henry Gull, president of the James Bay Eeyou Corporation, in a September statement.

Townsend feels the same about Sabayons. In fact, its name is a blend of the retailers — Saba Bros., Eaton's and The Bay — operating on the Bay Centre land before his store.

He's not aiming to recreate those businesses, but he's proud he re-energized their former home so much that he recently had to take a 28-day buying trip to Europe to scoop up enough product to satiate demand.

While he doesn't imagine opening more Sabayons stores in former HBC properties, he's not completely ruling out opening another store under a different name by his East Coast shipping hub.

"For logistics it would make a lot of sense to have a representation out on that side of the country, but definitely nothing in the near future," Townsend said.

This report by The Canadian Press was first published March 6, 2026.

Despite a weak Canadian dollar, rising unemployment and a shrinking national GDP, B.C.’s hotel industry appears to be showing a level of collective resilience not seen this decade.

CBRE Ltd. senior vice-president Nicole Nguyen with the brokerage’s valuation and advisory services group told Western Investor that B.C. markets across the Okanagan and Interior, along with Vancouver Island, saw high occupancy and transaction rates over the summer on par with pre-COVID-19 levels.

“We're back to or beyond, in many cases, 2019’s peak industry performance from both the top line and, most importantly, on the bottom-line standpoint,” Nguyen said.

The metrics used to gauge the hotel industry’s pulse include occupancy and capacity rates, overall revenue, revenue per available room (RevPAR) and average daily rate (ADR), among others.

CBRE’s 2026 Hotels Outlook report issued Sept. 15 indicates that B.C.’s hotel sector is outpacing every other region in the country.

Province-wide occupancy levels have consistently sat around 70 per cent since 2023, while ADR numbers were pegged at $252 million – a significant jump from 2019’s five-year low of $192 million. B.C.’s RevPAR numbers also reached a five-year high: $178 million this year compared to $136 million in 2019.

Ontario and Quebec’s occupancy rates hovered between 66 and 67 per cent; ADR numbers were at $210 and $233 million respectively; and RevPAR stats place Ontario at $141 million and Quebec at $153 million.

Nguyen said two major factors are driving the provincial sector’s recent success: fewer domestic travellers headed to the U.S. and less wildfire disruption.

While the 2025 wildfire season was vast in scope, its impacts didn’t include widespread displacement or trip cancellations. Tofino, Victoria and southern Vancouver Island, Kamloops and Kelowna and the Rocky Mountain region straddling the B.C.-Alberta border all performed well, Nguyen said.

The Metro Vancouver-wide snapshot was somewhat sluggish on the transaction side largely due to the nature of the owners. As Nguyen explains, those assets are often held by large, private investors or long-term owners such as pension funds.

New builds in major metro markets are also hampered by land, input and labour costs, along with the time it takes to get to market, and investor risk. When activity in those major markets see an uptick, it’s most often the purchase of existing properties rather than new builds.

“It's incredibly difficult to get an asset in Vancouver and it's the same in Toronto,” Nguyen said. “Once you have [a hotel property], it's rare that they transact and that's just because of the style of ownership.”

Macdonald Commercial Real Estate Services Ltd.’s Nick Goulet is the only commercial agent based on the west coast of Vancouver Island. As of mid-September, Goulet’s firm was overseeing the sale of the Tofino Motel Harbourview, a 13-room motel at the entrance to Tofino with an asking price of $6.2 million.

“Buyer activity in the hospitality market, especially with boutique hotels and motels like the Tofino Motel Harbourview, has been noticeably strong,” Goulet said. “I continue to see steady interest from groups both on and off the Island, and I’m speaking with buyers on a regular basis about opportunities here.”

Goulet has seen considerable uptick from lifestyle buyers wanting income properties in coastal locations who are largely unbothered by the geopolitical unease between Canada and the U.S.  

“I've experienced a notable amount of interest from U.S. investors on various investments,” Goulet said. “The buyers I’m dealing with are focused more on the long-term appeal of the Island.”

Further south down the Island, JBW Commercial broker Harry Jones recently helped close a deal on Victoria’s iconic Bedford Regency Hotel. The purchaser paid $8.9 million, and Jones said plans are to maintain the property as a hotel operation.

Jones’ sense of the Capital Region market isn’t as bullish as his west coast counterpart – instead, Jones views the trends as “active, but selective.”

“The market isn't what it was a handful of years ago when things were flying off the shelf,” Jones said. “But we're still seeing a strong, strong amount of activity on the investment sale side of things.”

Jones’ tempered approach is shared by Nguyen as she looks forward to the rest of 2025 and into 2026.

Nguyen points to several precursors that could interrupt the travel and hotel sectors moving forward: the national GDP shrinking by 1.6 per cent in the second quarter and a rise in both unemployment and core inflation.

“Generally bookings are made 60 to 70 days out when most people make their decision about where they're going,” Nguyen said. “As the economic data starts continuing to shift, if the unemployment continues to rise and we continue to see really poor output out of the economy, the hotel industry will catch up fast. I can tell you that from other downturns, the tap turns off really quick in those situations.”

Over the past 365 days, Alberta’s hotel real estate market has seen diverse activity across a range of rural and urban communities. At least 158 hotel properties were recorded, with 58 active, 58 sold, 37 expired, and 5 terminated listings.

Hotel prices spanned from as low as $7,000 to nearly $9.5 million, with the average listing priced around $1.5 million. Most properties fell within the $500,000 to $1.5 million range, with budget-friendly opportunities still available under $500,000, particularly in smaller towns like Hardisty, Delia, and Innisfree.

Active listings averaged 210 days on the market (DOM), while sold properties averaged 197 days, suggesting a moderately paced market. Notably, expired listings had a much higher average DOM of 288 days, indicating that overpricing or limited buyer interest remains a challenge in some regions.

Cities like Red Deer, Medicine Hat, and Stettler stood out for having multiple transactions across all listing categories. High-value sales were observed in Lethbridge, Red Deer, and Taber, with several properties exceeding $3 million. Meanwhile, opportunities under $1 million remain strong in smaller rural areas, often featuring older yet functional buildings.

Buyers seeking quicker returns may benefit from focusing on active listings with low DOM and mid-range prices, while sellers should remain cautious about overpricing, especially in slower rural markets.

🔹 1. Overview by Hotel Listing Status

🔹 2. Price Distribution (All Listings)

• Under $500K: 33 properties

• $500K–$999K: 44 properties

• $1M–$2.99M: 36 properties

• $3M–$5.99M: 21 properties

• $6M and above: 6 properties

🔹 3. Market Activity Insights

Top 3 Most Expensive Active Listings

1. Lethbridge – $7,850,000 | 41,084 sqft

2. Fort McMurray – $4,900,000 | 33,957 sqft

3. Banff – $3,350,000 | 5,221 sqft (historic building, 1908)

Top 3 Sold Listings

1. Taber – $3,700,000 | 20,396 sqft

2. Red Deer – $3,340,000 | 27,803 sqft

3. Lethbridge – $2,500,000 | 37,200 sqft

🔹 4. Average Metrics by Status

🔹 5. Notable Trends

• Red Deer, Medicine Hat, and Stettler were high-activity hubs with multiple listings across all status types.

• Older buildings (pre-1950) are still active in rural areas and often priced under $1M.

• Larger and newer hotels (post-1990, 20,000+ sqft) often occupy the $2M+ range, especially in cities like Lethbridge and Slave Lake.

• Long DOM listings (over 500 days) tend to be in small rural markets or require substantial renovation.

🔹 6. Recommendations for Investors

• Quick sales (<100 DOM) are clustered around $300K–$1.3M, ideal for budget-conscious investors.

• Look out for expired listings with long DOM—they may offer negotiation leverage if re-listed.

• Active properties with low DOM (under 50 days) include Hardisty, Delia, and St. Paul – potential hot spots.

Overall, Alberta’s hotel sector offers a wide range of investment options—from entry-level motels to high-capacity urban properties—positioning the province as a strong yet balanced market for commercial real estate investors in 2025.

✅ 1. Mobile Car Detailing Service

• Why It Works: Calgary’s long winters and busy commuters create strong demand for mobile services.

• Startup Costs: $10,000–$25,000

• Needs: Van or car, pressure washer, cleaning supplies, marketing

• Bonus: Can operate year-round with heated garages or enclosed tents.

✅ 2. Home Cleaning or Airbnb Turnover Service

• Why It Works: High rental turnover and busy professionals in the city.

• Startup Costs: $5,000–$10,000

• Needs: Cleaning supplies, liability insurance, website or booking system

• Target: Residential homes, condos, short-term rentals

✅ 3. Niche Food Stall or Ghost Kitchen

• Why It Works: Calgary’s growing interest in diverse food options and delivery.

• Startup Costs: $20,000–$40,000

• Examples: Bubble tea, ethnic snacks, keto meals, hot dog stand

• Bonus: Operate from commercial shared kitchens to avoid high rent.

✅ 4. Pet Services (Grooming, Walking, Sitting)

• Why It Works: Pet ownership in Calgary is high, and many services are underserved.

• Startup Costs: $3,000–$15,000

• Options: Mobile grooming, dog walking, in-home sitting, pet taxi

• Flexibility: Home-based and scalable

✅ 5. Landscaping and Snow Removal

• Why It Works: Seasonal demand is high, especially in residential suburbs.

• Startup Costs: $10,000–$30,000

• Equipment: Lawn mowers, snow blowers, trailer, shovels

• Clients: Homeowners, townhouses, and small business buildings

✅ 6. Digital Marketing or Social Media Agency

• Why It Works: Many small businesses in Calgary lack in-house digital marketing expertise.

• Startup Costs: $2,000–$8,000

• Skills: SEO, Facebook/Google Ads, branding, content creation

• Work from: Home or coworking spaces

✅ 7. Personal Fitness Trainer or Yoga Coach

• Why It Works: Increasing wellness trend and flexible, low-cost operations.

• Startup Costs: $2,000–$10,000

• Setup: Rent studio hours or offer in-home/online classes

• Certifications: Preferred but not always mandatory

✅ 8. Custom Printing & Embroidery (Apparel or Promo Items)

• Why It Works: Demand from local schools, sports teams, businesses

• Startup Costs: $15,000–$40,000

• Tools: Heat press, vinyl cutter, DTG or embroidery machine (basic)

• Sales: Online store, event booths, or business contracts

✅ 9. Tutoring or Educational Services

• Why It Works: High demand for academic and language support for children and immigrants.

• Startup Costs: $1,000–$5,000

• Subjects: Math, science, ESL, university prep

• Mode: Home-based or virtual

✅ 10. Specialty Reselling or Thrift Flipping

• Why It Works: Low barrier to entry, trendy among younger buyers

• Startup Costs: $500–$5,000

• Platforms: Facebook Marketplace, Etsy, eBay

• Items: Vintage clothing, collectibles, electronics, refurbished furniture

Alberta could run out of federally funded for-profit child-care spaces by this summer and, in anticipation, says it is limiting which new spaces receive the remaining dollars.

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Industry members were told this on Thursday via a letter signed by Jobs, Economy and Trade Minister Matt Jones, who would be switched in a cabinet shuffle the next day.

Under the Canada-Alberta Canada-Wide Early Learning and Child Care Agreement (CACWELCC), which the province signed in November 2021 and is set to expire on March 31, 2026, a cap of 26,200 child-care spaces are eligible for federal funding.

In the letter, Jones said Alberta’s requests for more flexibility have been denied, leaving the provincial government with the “difficult” decision about how to “best use” the remaining funding.

Effective May 15, affordability funding will be given first to existing for-profit programs that are creating space to meet a proven demand, as well as new private spaces in Grande Prairie, Red Deer, Lethbridge, Fort McMurray and Canmore/Banff, where there are long waitlists. The operators must be in the final stage of the licensing process and open on or before Sept. 30, unless they have a different timeline outlined in a Space Creation Grant Agreement with the province.

The change is necessary “to address the immediate pressure caused by the federal cap,” Jones’ letter read.

But an operator who planned to open a second daycare this fall says it jeopardizes quality care for families who have been waiting and the livelihoods of those who invested in starting a new business.

“What can you say to parents who are expecting affordable care, but now we can’t provide it?” asked Rhesa Palaypay, one of the founders of Trinity Early Learning Academy.

Palaypay plans to still open the new location in St. Albert, but isn’t yet sure how she is going to make that happen. She estimated she has invested $750,000 since January 2024 into the new business, which she said she started because her first facility, Klarvatten Daycare, couldn’t keep up with demand.

“It is quite an investment and a lot of risk for us – and not only me. To all child-care operators.”

The chair of the Alberta chapter of the Association of Childcare Entrepreneurs says this latest development only makes the rollout of the provincial-federal program a larger mess.

She called the program’s design around space quotas and targets, rather than program quality and operator support, a fatal flaw.

“It makes it really hard to even want to be in this space. It’s expensive, it’s risky, and your partner in it … the federal government, the provincial government, nobody communicates with each other,” Krystal Churcher told CTV News Edmonton on Wednesday.

“I think that we’re going to see a disaster in our child-care system over the next few years, where if we don’t correct it now, we’re going to have child care that is really declining in quality (and) we’re going to have children that are put in situations where there’s risk because the operators are brand new to this the field, and there’s not enough support.”

Alberta’s new education and childcare minister, Demetrios Nicolaides, on Wednesday reiterated the province needs to address the pressure caused by the federal cap, but said he’d be gathering feedback.

“I’ve been minister of childcare for maybe about three, four days, so one of the first things that I’ll be doing very shortly here is reaching out to many of those operators, advocacy organizations, umbrella groups, and chatting with them in a little more detail to try and get the best possible understanding of the pain points, challenges, concerns that we can work together to address them,” Nicolaides told reporters.

The province says licensed for-profit programs that don’t receive affordability funding can apply for wage top-up, professional development, and other kinds of funding for certified early childhood educators from the Alberta government.

New for-profit spaces that don’t meet this criteria won’t be eligible and parents who choose an ineligible program won’t see their fees reduced.

The change does not affect the non-profit program stream, nor the process and criteria for licensing. It also does not affect existing programs with an Affordability Grant or Space Creation Grant.

Alberta has not yet signed onto an extension of the CACWELCC.

Nicolaides said he wanted to have more robust discussions about Alberta’s needs during the renegotiation.

“I would suggest to operators, to parents, to the ministry, let’s not worry necessarily about reworking the program we’re in right now. We’re stuck here until March. Let’s make sure that we’re actually engaging with stakeholders and creating a really solid program and plan for April 1, because people are making business decisions right now,” Churcher said.

With files from CTV News Edmonton’s Chelan Skulski

By Alex Antoneshyn, CTV News, May 21, 2025

Benefits of Listing on HotelForSale.ca

1. Targeted Audience – The website likely attracts investors, hotel buyers, and sellers actively searching for hospitality properties, increasing your chances of finding the right buyer.

2. Higher Visibility – Your listing can reach a larger audience compared to traditional real estate listings, potentially resulting in faster sales.

3. Industry Expertise – Many of these platforms provide support, valuation insights, and exposure to industry professionals, helping you navigate the selling process efficiently.

4. SEO & Online Traffic – A dedicated hotel sales website often ranks well on search engines, making it easier for potential buyers to find your property.

5. Lead Generation & Inquiries – Listing on a specialized platform ensures that inquiries come from serious buyers, saving you time and effort in filtering out non-serious prospects.

Key Metrics from the Document

1. Total Event Views (568,673)

   • This likely represents the total number of tracked interactions (or events) on the website over the year.

   • Events could include actions like page views, clicks, form submissions, searches, and user engagements.

2. Total Users (38,561)

   • This represents the number of unique visitors to the website over the year.

   • A significant portion of these users likely engaged with property listings, which means strong visibility for sellers.

What This Means for a Seller or Buyer

• High Traffic Exposure: With over 568K event views, listings on this website receive significant engagement, which can increase the likelihood of a sale.

• User Engagement: Since there are 38K+ unique users, this suggests that the platform has a dedicated audience of potential buyers and investors.

• Marketing Potential: If you're listing a property, these metrics indicate that the website has strong activity, which can help in attracting serious buyers.

How much is my business worth? Please submit here.

As of 2025, Calgary has emerged as one of the most dynamic cities in Western Canada for entrepreneurship. With a diversified economy, a rapidly growing tech ecosystem, and strong government support, the city offers a fertile environment for launching new businesses. Below is a list of the top businesses to consider opening in Calgary in 2025, covering a variety of industries and suitable for different backgrounds and startup budgets.

1. Digital Services and Remote Work

Online Education & Tutoring

With continued growth in remote learning, online tutoring remains in high demand. Subjects like English, French, coding, and music are especially popular among children and adult learners. These businesses have low startup costs and can scale quickly using platforms like Zoom or Google Meet.

Social Media Management

As small businesses increase their digital presence, many seek professionals to manage their social media accounts. If you understand algorithms, trends, and content creation, you can build a profitable business with minimal overhead.

Virtual Assistant Services

Remote work has created a growing need for virtual administrative support. Services like scheduling, data entry, email management, and bookkeeping can be offered flexibly and profitably by individuals with strong organizational skills.

2. Health, Wellness & Fitness

Personal Training

With greater awareness of physical health, personal trainers are in demand. Whether it's in-home sessions, virtual training, or mobile fitness, this business offers flexibility and a strong income potential for certified trainers.

Personalized Meal Prep

Busy professionals and health-conscious families are looking for convenient, healthy meal solutions. Starting a personalized meal prep service or small catering operation is a viable option, especially if you offer delivery or pickup.

3. Pet and Household Services

Pet Services

Dog walking, grooming, pet sitting, and boarding are popular services in a pet-loving city like Calgary. These businesses are relatively easy to start with low upfront investment and appeal to animal lovers.

Home Cleaning & Handyman Services

With busy schedules and an aging population, demand for home services like cleaning, yard work, painting, and minor repairs is on the rise. These services offer steady cash flow and repeat customers.

4. Green Economy & Sustainability

Clean Energy Consulting

As Calgary transitions toward a greener economy, there's growing demand for solar panel installation, energy efficiency audits, and EV charging station consulting. Entrepreneurs with an environmental or technical background are well-positioned here.

Eco-Friendly Product Retail

Sustainable products such as zero-waste home goods, reusable containers, or plastic-free packaging solutions are increasingly popular. You can sell online or through local markets with a clear eco-conscious brand message.

5. Tech & Innovation

Software Development & IT Support

Custom app development, website design, and IT services for small businesses are in high demand. Calgary’s growing startup and tech scene offers opportunities to collaborate and scale.

Cybersecurity Consulting

As cyber threats increase, so does the need for cybersecurity services. Small and medium-sized businesses need protection against data breaches, and cybersecurity specialists can offer assessments, software, and ongoing support.

6. Creative & Cultural Businesses

Local Artisan & Handmade Goods

Support local artisans by selling handmade crafts, art, jewelry, and decor through pop-up shops, Etsy, or physical storefronts. Calgary’s creative community and tourism market support this type of business well.

Language & Cultural Exchange Services

With Calgary’s diverse population, there is demand for ESL programs, translation services, and cultural workshops. This type of business is ideal for bilingual or multicultural entrepreneurs.

7. Real Estate & Urban Development

PropTech Solutions

There’s growing interest in tools that simplify property transactions—like virtual tours, online contract signing, and listing platforms. Launching a real estate tech startup could be a promising path.

Short-Term Rental Management

As tourism rebounds, property owners increasingly need help managing Airbnb and other short-term rentals. Services like check-in coordination, cleaning, and guest communication are in high demand.

Calgary's 2025 business landscape is diverse and full of opportunity. Whether you're tech-savvy, passionate about wellness, love pets, or want to promote sustainability, there's a business niche for you. Align your strengths and passions with market demand, and you'll be well-positioned to succeed in this thriving entrepreneurial hub.

Margins remain tight as wages rise even as other costs fall

Alberta hotel markets are shining bright, according to speakers at the Western Canadian Lodging Conference in Vancouver on Oct. 30.

Calgary will lead the West in revenue growth next year, with revenue per available room (RevPAR) forecast to grow 7.1 per cent to $123, on top of 6.1 per cent growth this year.

“With the opening of the new BMO Centre and some good convention and event activity, along with economic growth in Calgary I think next year we’ll see almost 7 per cent, a large portion driven by occupancy,” Carrie Russell, senior managing partner, HVS Canada, said in her review of hotel performance across the region.

However, additional rooms are needed.

“BMO is now a Class A convention centre; unfortunately, they need a minimum of a 300-room hotel,” said co-presenter Greg Kwong, managing director in Calgary for CBRE Ltd. “They’re having very good success attracting [events] of 1,000, 1,500 people or less but to get to 2,000, every event organizer says, ‘No, ain’t coming.’”

Two projects totalling 377 rooms are on the go, including a conversion of the former Canadian Centre office block at 833 4 Avenue SW to an Elements Hotel by Westin by PBA Group under the city’s Downtown Calgary Development Incentive Program. They’ll be added to the inventory by 2026, but in the meantime a massive conference of 30,000 Rotarians next spring will max out existing room capacity.

An hour west, the Banff market is also establishing new benchmarks.

While average occupancy softened marginally to 65 per cent in the first nine months of this year, guests saw the average daily rate climb 11 per cent to $410 while RevPAR increased 7.8 per cent to $266.

“Banff is a little superstar in this country,” Russell said. “Demand didn’t quite keep pace with [new supply] … but the ADR growth is phenomenal – 11 per cent growth, translating to RevPAR being up almost 8 per cent.”

That’s set to continue, with Kwong challenging his audience to try booking a room in Banff for the holidays.

“Just for fun, and to instil a little envy in all you hotel owners, call and try to book a room at Christmastime, the Banff Springs or any of the other hotels, and take a picture of your face,” he said.

“Hoteliers know better than to go to Banff; they’re going to Canmore,” Russell quipped, but investors have shown an appetite for local properties.

InnVest made its third purchase in Banff this past June with the $43 million acquisition of the 101-room Banff Inn. It followed the 2022 purchase of a leasehold interest in the 99-room Royal Canadian Lodge and 65-room Charltons Banff

Oxford Property Group also spent $170 million on its purchase of the 330-room Rimrock Resort Hotel, citing its confidence in Canada’s luxury resort hotel market.

CoStar data bears this out, according to data Ingrid Jarrett, CEO of the BC Hotel Association, presented.

While consumer bemoan higher rates, luxury hotels are seeing some of the best performance right now.

“The luxury sector is leading profitability in Canada right now,” she said

While rate and revenue growth in Banff will pull back to 4 per cent next year, it remains respectable while pointing to limited room to run for top-end rates.

Victoria, described as B.C.’s answer to Banff, has also seen significant growth in rates, up 7.5 per cent this year to $262 a night, while RevPAR has soared 13.4 per cent to $191.

But that’s unsustainable, Russell said.

“Much like Banff, Victoria has had a really strong growth year,” Russell said. “I don’t think we can sustain that pace of growth in 2025.”

Projections call for rate growth slowing to 3.5 per cent in 2025 while revenue growth will fall to 4.5 per cent.

But the revenue is needed. While consumers don’t want to pay more, workers are asking to be paid more after the pandemic put the brakes on traffic and wage increases.

“We need the topline to be growing in hotels, because we’re seeing significant increases in labour. It’s time to pay the piper in terms of labour rates,” Russell said.

This means that slower revenue growth will serve to cover higher costs rather than boosting margins.

While other costs are coming down, many operators at the conference said they’re continuing to look for savings on labour, property taxes and other costs.

Some budgets are eyeing a two or three per cent reduction in staffing costs, for example, through measures like autonomous vacuums.

Strong job growth, new construction bearing fruit

The largest capital investment in the history of McCain Foods Ltd. is attracting new businesses and residents to Lethbridge, but the city’s industrial and office markets continue to chart their own course as conditions normalize following the upheavals of the past four years.

“Lethbridge sits at the heart of what we call Canada’s premier food corridor,” said Trevor Lewington, CEO with Economic Development Lethbridge. "Recent investments in the region like the $600 million expansion by McCain as well as the $220 million investment by NewCold underscore the importance of agrifood to our city as well as the bright prospects driving growth for the future.”

NewCold, a company from Europe that specializes in frozen storage and logistics, represents international diversification in a region whose manufacturing base also includes a Pratt & Whitney jet engine plant and Kawneer Co. Canada Ltd. aluminum plant among other ventures.

The breadth of activity has helped push unemployment down to five per cent even as the workforce has expanded by 15,000 people over the past two years.

“We’ve seen both the participation rate increase and total employment increase,” he said. “We’ve been able to absorb those 15,000 workers into the economy.”

There remain about 4,000 job vacancies in the region, primarily in the skilled trades.

While the 14,000 students at the University of Lethbridge and Fairview College fill most of the service-sector jobs, many leave on graduation as entry-level roles for graduates are rare.

Yet skilled workers are most in demand to keep the economy humming – instrumentation trades, electricians and heavy equipment operators.

They’ll be even more in need as industrial development ramps up after a lull following the sharp rise in construction and financing costs in 2021-22.

An owner-user has purchased two of the three lots available at Northpointe, a venture of Lethbridge-based Sumus Property Group within the 350-acre Sherring Business and Industrial Park, and will soon commence a 250,000-square-foot development.

Yet high servicing costs within the city have focused Sumus itself on 63 acres it acquired earlier this year in Frontier Business Park, a few minutes away in Lethbridge County.

Most of the space will likely be built to order for tenants with lower site servicing requirements attracted by the tax incentives in the county.

Stabilizing demand and a lower volume of industrial construction is narrowing the gap in price for serviced and unserviced industrial land in the Calgary market.

While overall prices per acre have risen, the gap between serviced and unserviced industrial land as closed in the past four years, commercial brokerage Avison Young reported on August 16.

Serviced industrial land is currently trading at approximately $650,000 an acre, up from $500,000 in mid 2021.

Unserviced industrial land, located primarily outside city limits, is approaching $600,000 an acre, up from $400,000 an acre in mid 2021.

Demand for industrial land is high in the Calgary market, with the majority of supply located northeast of the city in Balzac in Rocky View County as well as surrounding county lands on Calgary’s eastern flank.

Strong demand from owner-occupiers for properties to meet their outside storage needs, including oil service and manufacturing as well as trucking companies, have helped narrow the gap, Avison Young.

“We anticipate the price gap will further narrow as more users absorb more space and as servicing costs continue to increase, pointing to the desirability of both serviced and unserviced land,” Avison Young said.

Constraints on Calgary’s industrial land supply are underscored by Avison Young’s second-quarter report on the city’s industrial market, which indicates that just 65 industrial land sales with an aggregate value of $185 million occurred in the first half of the year.

Barring the pandemic year 2020, this was the lowest tally in a decade.

Yet the demand for industrial space, serviced or unserviced, is underscored by a recent report for brokerage JLL.

JLL data indicates Calgary bucked the trend of rising vacancies seen in many markets this year as the pace of new construction slowed.

“Construction deliveries significantly reduced to 179,967 square feet compared to 2.2 million square feet in Q1 2024,” JLL reported August 8. “Steady demand and a reduction of new vacant space delivered to the market in Q2 resulted in downward pressure on vacancy.”

Vacancies marketwide averaged 3.5 per cent in the second quarter, while availability sat at 5.3 per cent.

Balzac continues to have the highest vacancy rate of 5.5 per cent due to significant recent deliveries. The situation is likely to remain unchanged for the foreseeable future as 64 per cent of the 2.7 million square feet under construction in the Calgary market is happening in the Balzac submarket.

However, the volume of industrial space under construction in Calgary has declined by more than 60 per cent over the past year, promising better times ahead as deliveries decline and demand stabilizes.

“Demand remains strongest among mid and small bay users and developers are expected to respond with more projects geared towards these users,” JLL reported.

温哥华的酒店入住率在6月下降，但客房价位继续上涨，使大温区域连续第二个月成为加拿大最昂贵的酒店房间市场。

根据全球房地产新数据，6月的温哥华酒店房间平均价格为$336.53，比2023年6月的$318.92上涨了5.5%以上。这是大温地区有史以来第三高的平均每晚酒店房价，仅比9月份的$336.78低0.25加元，后者是大温地区第二高的酒店房价。温哥华在去年7月创下的$347.15加元的平均每晚房价是该地区历史最高纪录，也是加拿大任何大都市在任何月份的历史最高纪录。

高昂的酒店房价可能会阻碍潜在游客的到来。

与去年一样，蒙特利尔在6月成为加拿大第二贵的酒店市场，仅次于温哥华，超过了排名第三的多伦多。蒙特利尔游客在6月每晚支付了$304.14加元，比2023年6月的$302.71价元上涨了不到0.5%。而选择在Hogtown（多伦多）住宿的游客则每晚支付$286.44加元，比一年前相同月份的$288.44下降了不到0.7%。

6月酒店房价涨幅最大的城市是阿尔伯塔省会Edmonton，这可能与动态定价以及对国家冰球联盟埃德蒙顿Oilers的兴趣有关，该队在该月进行了四场主场比赛。随后在Florida洲的Stanley Cup决赛第七场比赛中输给了Florida美洲豹队。

然而，埃德蒙顿的游客仍然享受了相对便宜的房价，整个月的房价平均为$150.68，是加拿大主要大都市中最低的。不过，这比2023年6月游客支付的$136.76上涨了10.2%。

如果将市中心区域单独比较，温哥华的市中心酒店房间价格在6月以$407.46加元位居加拿大之首，超过了多伦多的$388.29加元。温哥华的价格比2023年6月上涨了4.7%，而多伦多市中心的酒店房价则比去年6月的$390.82下降了0.6%。

对于温哥华旅游业来说，令人欣慰的是6月的酒店房间供应量比2023年6月有所增加。2024年上半年与2023年同期相比情况也是如此。

今年前六个月，我们看到大温哥华地区的供应增加了1.5%，而需求下降了1.4%（以总住宿晚数计算），所以总体来看，这导致了不到3%的入住率下降。然而，在6月份，大温哥华地区的酒店入住率下降幅度更大：从2023年6月的89%下降了5.4个百分点，降至83.6%。

在大温区域中，对区域酒店入住率影响最大的是温哥华机场的子区域。该区域围绕温哥华国际机场，包括了Fairmont Vancouver Airport hotel以及许多位于列治文的酒店。

其中的388间房的Radisson Blu Vancouver Airport hotel就在这一组酒店中，它在2023年6月进行了翻修。Radisson hotel在去年7月重新开业，并保持开放，这意味着今年该子区域的酒店房间数量明显比去年更多。与此同时，当地还有40余酒店工人罢工，这可能使一些潜在客人不愿预订这家大型酒店。因此，温哥华机场酒店区域在6月的入住率比2023年6月下降了12.4%。

Fraser Valley的酒店入住率趋势与温哥华机场酒店子市场类似，6月份同比下降了12.4个百分点。68间房的Holiday Inn Express & Suites Chilliwack East今年开放，而去年没有对外开放。

与2023年6月相比，游客在6月购买的大温区域酒店房晚减少的一个原因是疫情后的强烈旅行需求趋势已经消退。这种现象，也就是有人称之为‘报复性旅行’的趋势，现在正在减退。 现在的情况正好相反，在过去几年里，很多人花了很多钱用于旅行，因此当人们开始收紧开支时，他们不得不重新调整优先级，减少了旅行支出。

Alberta is expected to lead Canada's growth this year, according to TD Economics, which is forecasting an increase of 1.9 per cent in the province’s economy this year.

This is the largest of any province in Western Canada, exceeding last year’s tepid growth rate of 1.5 per cent.

A slowdown in the construction sector due to uncertain economic conditions and high costs contributed to last year’s slow growth, as well as contraction in the agricultural sector linked to drought.

“An expected surge of activity in the oil patch this year will return Alberta to the upper end of provincial growth charts, counteracting early signs of a flagging household sector,” TD Economics forecasted. “Oil output is on pace to record its strongest year since 2018 as the Trans Mountain Pipeline completion boosts overall capacity.”

High costs will continue to dog the construction sector, but real estate investment is on the upswing, particularly in the multifamily sector as the province continues to record strong in-migration.

However, TD says this is also driving up the province’s unemployment rate because hiring simply isn’t expanding fast enough to find places for all those workers.

“The unemployment rate has jumped to 7.2 per cent, the highest in nearly three years,” TD reported. “Population growth at current rates [is] unsustainable and will likely slow over the coming quarters, helping to ease pressure on the unemployment rate.”

It will also ease pressure on the housing supply, though the province continues to see strong growth in rents due to a constrained supply of units.

High interest rates are also keeping some buyers in rented accommodation for longer.

TD’s positive outlook is consistent with the latest quarterly update from ATB Financial, released June 18.

ATB Financial is more bullish than TD, forecasting real GDP growth for the province of 2.5 per cent in 2024 and 2.7 per cent in 2025, outpacing the national growth rates of 1.2 per cent and 1.8 per cent, respectively.

Similar to other observers, ATB Financial believes 2024 will be a “breakout year” for the province’s energy sector after a decade of challenges.

“Oil producers finally have additional pipeline egress as the Trans Mountain Pipeline Expansion (TMX) entered commercial operations in May,” it reported. “Coastal GasLink provides egress for natural gas producers. We see significant improvements to energy production over the next two years, propelling GDP growth.”

A shift towards lower interest rates will also support investment and economic growth, it said, benefitting the province’s housing supply.

“The resurgence in home construction stands as a pivotal driver of Alberta's economic improvement in 2024,” the forecast noted.

The breadth of economic drivers points to the diversification and maturation of the provincial economy into a better-rounded creature than in the past, it noted.

“Despite recent challenges, the provincial economy has been resilient,” ATB Financial chief economist Mark Parsons said. “Looking ahead, Alberta's growth is expected to improve over the next two years, driven by improved market access for energy, increased construction activity, and a broadening economic base.”

Steady job growth and strong in-migration have made Alberta among the most robust of Western Canada’s economies, but the impacts on real estate have been mixed.

Downtown office vacancies are stuck in the high double digits despite marked improvement relative to the rest of Canada. While broad tenant demand is strong, the right-sizing of space requirements to the hybrid work environment means older space will take time to lease up.

On the industrial side, a flight to quality has meant a rise in industrial vacancy rates as tenants move from older lease space into purpose-built facilities. While demand for space is steady, the uptick in vacancies points to a shift in the market.

Calgary saw industrial vacancies hit 3.5 per cent in the first quarter, nearly double the 1.8 per cent seen a year earlier, according to Colliers Canada statistics. In Edmonton, 15 quarters of positive absorption hasn’t stopped vacancies from rising to 4.5 per cent over the past year from 3.8 per cent a year ago.

A good example of how things have shifted is Amazon Canada, which recently capped a wave of construction with the opening of YYC 4, its new fulfilment centre in Calgary’s East Shepard industrial area.

Robotics play a central role at the 2.8 million-square-foot facility, where more than 1,500 staff work alongside automated systems to ship upwards of 950,000 units a day.

The facility follows on the February 2023 opening of YEG 2 in Edmonton’s Acheson industrial precinct. Then the company’s largest fulfilment centre in Western Canada at 635,000 square feet, it employed 1,000 workers alongside a reported 5,000 robots.

The new Calgary centre trumps it, the culmination of more than $40 billion worth of investments Amazon has made in Canada since 2010. (The cost of the new Calgary facility was reportedly $400 million, or 1 per cent of the total.)

“[It] allows us to ramp up our overall operations in Alberta, and obviously that supports the Canadian network as a whole,” Sushant Jha, general manager of YYC 4, told Western Investor.

The new Calgary facility incorporates roles from YYC 1, which Jha said continues to employ about 500 staff as it enters a retrofit period. Approximately 500 employees still work there.

“That facility has outlived the technology,” Jha said. “They’re going to go back inside it, retrofit and then go from there.”

The retrofit complete by the holiday shipping season, limiting any disruption to Amazon’s fulfilment operations.

Amazon currently operates two fulfilment centres in Calgary and three fulfilment centres in Edmonton, as well as five delivery stations and a sortation centre. Calgary is also home to a datacentre for Amazon Web Services.

Calgary’s workforce is an asset to the company, which has plans to grow employment in the province to 6,000 from 4,000 a year ago, but its location is also ideal for serving destinations across Western Canada.

“Having this facility in Calgary, it allows us to serve first and foremost the city of Calgary and within the province of Alberta but then extend … that speed logistically to B.C. and the Prairies overall,” Jha said.

While YYC 4 is the final new project of the current wave of construction, Amazon continues to invest in its facilities top keep pace with industrial space requirements.

“While the retrofit [at YYC1] is happening, Amazon as a business is also looking at what else the customer needs in the geographical location and how best to support that,” Jha said.

Canmore is set to be one of the best markets in Western Canada for price appreciation this year when it comes to recreational properties, thanks in part to steady demand that’s outstripping supply.

Re/Max Canada’s annual cottage report, released April 30, forecasts a 10 per cent increase in the average price of recreational properties in Canmore to an average of $1,144,464, placing it firmly ahead of all other recreational markets surveyed except for Whistler.

“Buyer demand has dropped from the pandemic,” said Richard Greaves, owner and managing broker at Re/Max Alpine Realty in Canmore, but the town remains just an hour’s drive from Calgary and its international airport, and minutes from ski hills and trails within provincial and national parks.

This has supported buyer demand, which hasn’t diminished even as listings have dwindled and high construction costs have limited new supply.

“We have a lot of demand and it just doesn’t seem to be waning at all,” Greaves said. “We don’t have a lot of buildings to increase that supply any time soon. … The lack of supply is what’s keeping prices high.”

Buyers have shown a willingness to pay higher prices.

Canmore saw its most expensive residential transaction ever in mid-April with the $7.5 million sale of 147 Cairns Landing, a six-bedroom home on a half-acre lot in the Three Sisters Mountain Village area.

“We’ve never seen prices like that,” Greaves said.

It easily trumped the previous record, set in December, when one of the agents in Greaves’ office sold a four-bedroom home at 113 Spring Creek Lane for $6.2 million. The previous record of $5.5 million was also set last year, underscoring the importance of top-end buyers in keeping Canmore’s recreational market moving.

Canmore’s strength stands in contrast to other Alberta markets, which generally outpaced it last year.

Re/Max reported that Canmore prices gained just 8 per cent last year, well below destinations such as Edmonton Lakes (up 22.7 per cent to $477,104) and Sylvan Lake (up 14.9 per cent to $666,949). Both markets will see increases of just 5 per cent this year, and at much more affordable price levels.

Canmore’s lead in pricing is cemented by a drop in the second priciest market outside Whistler, Tofino, where waterfront properties are set to decline 10 per cent to $901,004 thanks to limits on short-term rentals.

Ucluelet will see prices appreciate by 10 per cent on par with Canmore but off a lower base that will see prices end the year in the range of $744,373.

Re/Max doesn’t provide a forecast for Whistler, noting that “market conditions evolve throughout the year based on a variety of factors.” However, similar to Canmore, top-end buyers remain active there, with the resort municipality reporting its most expensive condo sale ever March 20 with the $9.3 million sale of a 3.5-bedroom corner unit at the Four Seasons Private Residences.

Despite concerns about the impact of federal policies, including the ongoing moratorium on foreign purchases as well as changes to the capital gains threshold, Greaves doesn’t see things changing much this year.

Buyers are primarily from Alberta, with an uptick in interest from Ontario buyers.

Vendors are primarily those who haven’t been using their properties as much as in the past, especially older owners who are now thinking about downsizing.

Canmore has a large short-term rental market, but the post-pandemic revival in international tourism has meant that those units are once again generating healthy cash flows that offset concerns about changes to capital gains exemptions announced in last month’s federal budget and expected to take effect in June.

“We’ve had a few calls,” Greaves said of the changes to capital gains exemptions. “Some people have probably brought their timeline up to sell who were already thinking about selling this year, but we haven’t seen an influx of inventory.”

That lack of additional inventory means that capital gains are likely to continue on second homes in the Canmore market for the foreseeable future.

DEAL | Boardwalk REIT closed its purchase of The Circle, a 295-suite multifamily rental property in Calgary, Alberta on Jan. 24 for $77.8 million. The property has multiple addresses: 1100-1122, 1074-1096, 1126, 1130, and 1134 Seton Circle SE. The price works out to $263,729 per door.  A conditional agreement for the property was struck in May 2022, and an agreement for the transaction announced Dec. 14, 2023. The property is strategically located near two existing Boardwalk properties, The Level and Auburn Landing, providing operational efficiencies. The Circle is approximately 85% occupied.

PRICE | $77,800,000

CALGARY — No community anywhere would willingly choose to have a nearly 30 per cent office vacancy rate in its downtown core. 

But faced with that problem, one Canadian city came up with a plan that is now being held up as a model for the rest of the country amid an ongoing national housing crisis.

Calgary has been busily working to convert underused office towers to residential housing, thanks to the city's one-of-a-kind incentive program for developers.

In just two years, the program has resulted in the approval of 13 office-to-residential conversion projects, with four more still under review.

The first project, the $38-million conversion of an underused 10-storey office building into 112 residential apartment units, is nearly complete and expected to open early this year. Several more projects are currently under construction.

Proponents say the early success of the program has shown that office-to-residential conversions can work, and that the idea can be part of the solution in a country facing a massive shortfall in housing inventory.

“I think this can work in any major city. Especially any major Canadian city, because in my point of view, we’re all struggling with providing enough homes," said Walsh Mannas, a principal with commercial real estate firm Avison Young, of Calgary's downtown development incentive program.

"Any market where municipalities are going to incentivize residential development, I think could have success with this in various degrees."

Calgary's downtown development incentive program, which offers $75 per square foot to building owners willing to convert underused office space to residential apartments, is unique to North America.

It was launched in 2021, at a time when the city — home to more corporate head offices per capita than anywhere else in Canada — was reeling in the wake of an extended downturn in oil prices and the COVID-19 pandemic. 

Commercial property values in the city's core had collapsed due to a wave of energy sector layoffs and consolidation that had left close to a third of Calgary's downtown office space empty. 

Desperate to fill nearly 13.5 million square feet of unoccupied space and boost its dwindling tax base, Calgary launched the incentive program with the goal of removing six million square feet of empty offices from the city's downtown by 2031.

Sheryl McMullen, who manages the program for the City of Calgary, said it was unclear at the time what the reception would be.

But the program turned out to be so popular that in October 2023, the city was forced to press pause after reaching its $253-million funding threshold.

"When we launched the program, we didn't know if we were going to get one application or 10," she said.

"We ended up getting 15 in just the first round. So we knew we'd done something right when we had that number of building owners interested."

Canada is in the midst of a housing crisis. One estimate from the Canada Mortgage and Housing Corp. suggests an additional 3.5 million new units must be built by the end of the decade to supply affordable housing to the people who need it.

Office-to-residential conversions aren't a silver bullet, said Greg Kwong, Alberta managing director for commercial real estate firm CBRE, but they can be a piece of the puzzle.

He pointed out many cities are grappling with an excess of downtown office space in the wake of the pandemic and the work-from-home trend.

"It's not the overall panacea, it's just one of the many levers that we have to be pulling to get our downtown cores more vibrant and alive again," Kwong said.

"This is a problem that will affect more cities than just Calgary."

In the third quarter of 2023, Avison Young statistics show Vancouver and Toronto both had downtown commercial vacancy rates of 12.5 per cent, while Ottawa had a downtown vacancy rate of 14.7 per cent. 

In both Edmonton and Montreal, more than 20 per cent of available downtown office space sits empty.

"The office market in Toronto, Vancouver and Montreal is still in a much better place than Calgary, but these cities are also struggling through the post-COVID office market," Mannas said.

"I think it will take time to work through what the new reality of vacancies is, and depending on how much those vacancies grow, office-to-residential becomes an even better opportunity."

Ken Toews is senior vice-president of development with Calgary-based Strategic Group, a developer that has previously completed three office-to-residential projects in Alberta without the help of an incentive program. 

While he is an unequivocal fan of the model, Toews said most prospective conversion projects require some kind of government support to make financial sense.

"Office buildings were never intended to be developed into apartments," said Toews, whose company is now in the process of converting an empty heritage office tower in Calgary called the Barron Building into residential rental suites. 

"There are a lot of design issues, and a lot of developers won't touch them because they're just too challenging."

Turning an office tower into an apartment building requires getting creative and finding solutions for oddly shaped floorplates, unusually situated elevators and in some cases, a lack of windows, Toews said. 

But while these complications can make office conversions costly, they still take far less time than constructing a new building from the ground up. 

Toews added they also have a far smaller carbon footprint than new builds, and have the added benefit of bringing new life and vibrancy to tired downtown areas.

As more conversions are completed and developers and architects get more experience, a wider variety of buildings will become viable candidates, Toews said. 

He said he's already been approached by developers from across Canada who are looking to take lessons from Calgary's experience.

"We know this is part of the solution for the housing crisis, and it can probably work in any city if the city is willing to put in an incentive," Toews said.

"We have a big challenge in this country with housing and you know, I think we have to really dig in and make sure we get as many people working on it as possible and be creative with our solutions."

This report by The Canadian Press was first published Jan. 7, 2024.

Amanda Stephenson, The Canadian Press