Former Hudson’s Bay buildings across Canada are being reimagined as owners search for new ways to repurpose massive retail spaces following the company’s bankruptcy last year.
In Calgary, a historic Stephen Avenue location could soon be transformed into residential units after a purchase agreement by locally based Astra Real Estate Corp.
A real estate experts say the downtown location makes the building well-suited for housing, particularly as Calgary’s population continues to grow, though success will depend on how the project is executed.
“It has some vibrancy. There’s the shops, the retail, the restaurants and some nightlife as well,” said Calgary realtor Julie Dempsey.
“If you can do something that offers a unique aspect and it’s priced affordably that’s kind of the winning combination.”
Retail analyst Bruce Winder said Calgary’s growth makes residential conversion a strong option in this case, but in other parts of the country — particularly where markets are more saturated — owners are having to take a more creative approach to repurposing large retail spaces.
“It’s just sort of a symptom of how retail has changed,” Winder said. “More is being bought online. When it comes to brick and mortar, consumers either go to discounters like Walmart or Dollarama or they buy online.”
He said in prime locations, developers may divide large properties into smaller retail units, while in other markets they may turn to residential, mixed-use or even unconventional uses.
In Ottawa, the future of a former Hudson’s Bay building in the ByWard Market remains uncertain after a numbered company tied to Claridge Homes reached a deal to purchase the site.
In Toronto, a proposal has been put forward to convert much of a long-vacant former Bay location at Yonge and Bloor streets into a self-storage facility — a plan that has drawn mixed reactions.
Industry observers say adapting these buildings can be difficult due to market conditions, the decline of large-format retail and constraints tied to the structures themselves.
“Department stores have ‘sunsetted’ and we just don’t need the same space anymore,” Winder said.
