With the decline of store-front retailers across the country becoming more apparent, Canadian mall owners are looking to change their approach to business.
The 2015 closure of Target stores nationwide as well as the recent liquidation of all Sears locations has left Canadian malls with large spaces to fill, but they may not be looking for new stores to do that. As the real estate market in Canada’s largest cities continues to heat up more developers are now considering replacing shopping centre space with residential units.
Many commercial real estate investors such as Riocan, the owner of Oakville Place Shopping Centre, are increasingly considering this as the demand for retail space dwindles. With the closure of the Oakville Sears location imminent the vacant space could be turned into condominiums, an approach being taken by many similar mall owners. Cadillac Fairview for example has recently committed $2 billion to add residential units to four of its mall locations.
Some plans have been set for the replacement of the Oakville Place Sears, but with an ever increasing demand for housing in the GTA, a condo development in the mall’s next renovation plans may not be out of the question.
Photo Courtesy of Mike Kalasnik