Ottawa's downtown core may be on the verge of a major transformation, with an exclusive report revealing that buyers have been found for Hudson's Bay Company's flagship buildings in Vancouver, Calgary, and Ottawa — marking a significant milestone in the retailer's prolonged wind-down process.
The scoop, published by real estate journalist Howard Chai on Substack, indicates that deals have been struck for the properties in all three cities, though details on the buyers and the terms of those agreements have not yet been made public.
A Landmark in Limbo
For generations of Ottawans, the Hudson's Bay store on Rideau Street has been more than just a department store — it's been a fixture of the downtown shopping experience. The building sits at one of the city's most trafficked retail corridors, steps from the Rideau Centre and the historic ByWard Market.
When HBC announced it was seeking creditor protection earlier in 2025, the fate of its large-format stores across Canada quickly became a focal point for city planners, developers, and commercial real estate watchers. Large anchor spaces like the Bay's are notoriously difficult to repurpose — they were designed around a retail model that has all but collapsed in the face of e-commerce.
What Could Come Next?
While no buyer has been officially named for the Ottawa property, the range of possibilities is wide. Similar anchor conversions across North America have produced mixed-use developments, post-secondary satellite campuses, municipal office space, and even residential towers.
Ottawa city planners have previously expressed interest in seeing downtown real estate put to uses that increase foot traffic and housing density. A well-designed redevelopment of the Bay's Rideau Street footprint could be a meaningful piece of the puzzle in revitalizing a stretch of downtown that has seen some retailers struggle in recent years.
Local commercial real estate observers will be watching closely to see whether the buyer has a retail, residential, or institutional vision for the space.
Part of a National Story
Ottawa's situation mirrors what's unfolding in Vancouver and Calgary, where HBC properties are also reportedly under contract. Across Canada, the fall of the Bay has left a string of large vacant or transitional retail spaces in prime urban locations — representing both a challenge and an opportunity for city-builders.
For Ottawa specifically, the outcome will matter beyond just Rideau Street. The health of the surrounding retail ecosystem, including the Rideau Centre mall, depends in part on whether the Bay site attracts visitors or becomes another gap in the streetscape.
What Ottawans Are Watching
Until buyers are formally announced and development plans filed with the city, residents and business owners in the area are left reading the tea leaves. But the news that a deal is reportedly in place is at least a signal that the property won't sit vacant indefinitely — a concern that has loomed over the space since HBC began closing locations.
Keep an eye on Howard Chai's Substack and City of Ottawa development applications for the next update on this story.
Source: Howard Chai | Substack (exclusive report via Google News Ottawa RE RSS feed)
