When Hudson’s Bay Co. ULC entered creditor protection last Friday some real estate observers quickly wondered: What will happen to the department store’s flagship building in downtown Vancouver?
The company is expected to close about half of its 80 stores, The Canadian Press reported Monday. It is unclear whether the downtown Â鶹´«Ã½Ó³»flagship at 674 Granville St. will be retained, sold or redeveloped.
HBC spokesperson Tiffany Bourré said in an email no decisions have been finalized at this time.
“It’s one of the best sites in Vancouver, it’s a fantastic piece of property,” said Sherman Scott, a Vancouver-based vice president with Colliers Canada.
He said the seven-storey building’s current configuration wouldn’t work for many retailers today, with low ceilings and tricky loading, for example. The property was initially built in 1913. Given the ascension of online retail, foot traffic may not be what it used to be.
“I would think there would be a lot of demand for that space from retailers, but it definitely needs a major renovation, a re-do,” said Scott.
He said today’s market conditions may not be conducive for a conversion into condos or office, but that such uses could be profitable over a longer horizon.
“The current demand isn’t there for condos or office, given the state of the market, but certainly long-term that could be there, or potentially hotel. There’s lots of different [potential] uses for that site,” he said.
Streetworks Development, HBC’s real estate arm, did not respond to BIV. Streetworks’ website is still online, but its news section has not been updated since December 2023.
The building is co-owned by RioCan Real Estate Investment Trust, as are a number of other HBC stores in Canada. RioCan did not respond to a request for comment. HBC said in a March 7 press release that an initial 10-day stay of proceedings is also extended to HBC's real estate joint venture with RioCan.
HBC is currently undergoing a restructuring under creditor protection, under the supervision of monitor Alvarez & Marsal Holdings, LLC.
HBC president and CEO Liz Rodbell said in a March 7 statement the company is exploring potential solutions to preserve and strengthen its business.
“Our goal is to re-establish our foothold and ensure the company’s long-term place in the evolving Canadian retail market,” she said.
The HBC store in downtown Â鶹´«Ã½Ó³»is currently assessed at $194,674,000 but is considered much more valuable. A conditional agreement was signed in 2018 with an offshore buyer to sell the historic site for $675 million, but the .
Former HBC president Wayne Drummond told the Retail Insider news outlet in February 2022 that the flagship property to contain a smaller, new-format department store, new food and beverage offerings, a new office building atop the heritage base, and a new transit interchange.
When HBC withdrew from Vancouver’s reimagined Oakridge Park development in November 2024, the retailer said it for the redevelopment of its flagship location on Granville Street.
Those plans have been scrapped, apparently in a hurry.
“I walked by the site yesterday and I still see their development permit application [sign] up on the building,” Colliers' Scott said.
