Vacant Hudson’s Bay stores could spark interest — if landlords are willing to get creative

Apartments, health centres and even pickleball courts may be coming to your local mall after Hudson's Bay departs. 

Apartments, health centres and even pickleball courts may be coming to your local mall after Hudson’s Bay departs.

Retail and real estate experts say the closure of most of the 355-year-old company’s department stores offers a chance to reimagine the country’s most sought-after and high-traffic spaces in malls.

“I think it’s a massive opportunity for landlords to reinvent,” said Kate Camenzuli, vice-president of retail at commercial real estate company CBRE.

“It may take a bit of time, but I think it’s a huge positive because this is the last large-format piece of space that will be and is available in the Canadian marketplace.”

The 74 Hudson’s Bay, two Saks Fifth Avenue and 13 Saks Off 5th stores set to be vacant as Canada’s oldest retailer closes all but six sites typically cover about 120,000 square feet apiece.

Some locations like the Toronto flagship on Yonge Street are enormous: Hudson’s Bay takes over 675,700 square feet there and the adjoining Saks another 175,000 square feet, court documents say.

The retailer’s stores tend to be in Canada’s busiest shopping corridors, making them prime for a reinvention some landlords have quietly been thinking about for years.

“In my landlord days, we had plans on … resetting the Bays for pretty well, I don’t know, 15 or 20 years, for sure,” said Toran Eggert, who advised landlords before becoming managing partner at Toronto-based real estate brokerage Urban Reform Realty.