As retail space construction across Canada slows due to rising building costs, higher interest rates and general economic uncertainty, one Montreal developer has found that expanding existing properties offers a way to meet increasing demand from growing retailers and turn a profit.
New store builds can be lucrative if retail space is added at existing malls and centres, argued Dean Mendel, cofounder of Montreal-based Forum Group.
Adding store space at established properties enables developers such as Forum to avoid potential bureaucratic roadblocks during the permitting process because zoning permissions are usually already included, Mendel said.
The developer described the process of obtaining municipal permits to create new retail projects as “incredibly brutal.”
“Typically, when the stores are on existing properties, you already have the city on board in terms of what you’re trying to accomplish,” Mendel said. “It is still very difficult to get approvals for a new site, but when you’re just adding onto an existing facility, it tends to be much less painful.”
Read the full article that was published in Costar