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Home Real Estate

The Impact of Walkability on Real Estate Development in Canada’s Urban Centers

September 16, 2024
in Real Estate
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The Impact of Walkability on Real Estate Development in Canada’s Urban Centers
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Walkability: it sounds like a straightforward concept, but when you consider the diverse landscape within major Canadian cities, it’s not quite an apples-to-apples comparison.

Francesca Johnson, a realtor with Century 21 based in Calgary (which has a Walk Score* of 39), grew up in Manitoba. The difference between the two cities when it comes to defining walkability is indicative of each area’s respective urban areas — despite Winnipeg technically having a higher Walk Score (of 48).

“It takes half an hour to an hour to even get to the city from where a lot of people live because it’s very agricultural,” Johnson explains about Winnipeg.

She compares walkability to her current experience living and working in Calgary:

“I would break it open to three pieces: amenities, accessibility and safety,” she comments. “Are they taking good care of the sidewalks in the winter time, or are you going to be terrified that you’ll break your back on the way to work because they haven’t started it or they haven’t travelled it?”

Place-making and pedestrianization in Vancouver

On the West Coast, Vancouver (with a Walk Score of 80) is addressing its own questions about walkability with the City’s launch of the Water Street Pedestrian Zone pilot project over the summer in the popular Gastown area. The pilot converted a section of the street, formerly open to vehicle traffic, into a pedestrian-only area with public seating, market stalls and a free bike valet.

Nathan Hawkins, an urban planning student at the University of British Columbia, is involved with Vision Zero Vancouver, a non-profit organization that advocates for transportation systems that put safety first. He closely watched the pilot project in Gastown unfold throughout July and August.

“I love it,” Hawkins shares. “I think any change of use and pedestrianization of streets is fantastic from a safety and place-making perspective.”

Some businesses dissatisfied but pilot & walkability factor could help — not hinder — sales

Not everyone shares his sentiments, however. Some local businesses affected by the project have expressed their dissatisfaction with the changes, citing negative impacts on sales.

Having previous experience as a real estate project manager for a retail start-up in Canada, Hawkins takes an analytical approach in assessing any brick-and-mortar business’ sales success. This involves metrics such as month-over-month revenue, daily revenue, year-over-year revenue and basket size per sale/transaction. He believes that the pilot project, and subsequent walkability factor that comes with it, should actually help, not hinder, these businesses.

“No business has the resources to be able to say this specific pedestrian pilot accounted for 80 per cent of their loss of sales this month versus last month. There’s just no way,” he adds.

Toronto: ‘So hard to get downtown’ and every commute minute matters

Adam Jacobs, PhD, the national head of research with Colliers, adds his insights into how walkability impacts the real estate market in Toronto (which has a Walk Score of 61), where he’s based:

“It’s so hard to get downtown here,” comments Jacobs. “It’s a difficult commute, there’s a lot of construction, there’s a lot of traffic and it’s getting harder and harder to get employees downtown.”

For businesses with offices in downtown Toronto, every minute matters. A Q1 2024 report from Colliers indicated that “an average lower commute time of 10 minutes is correlated to a two-percentage point lower market vacancy.”

So how do these businesses decide on their next office space?

“(They think,) ‘Let’s make this as frictionless and easy as possible. I’ll pay top dollar to rent the building right next to the main train station’,” Jacobs explains.

Walkability impacting the market: A ‘wholly Canadian issue’

Whether you’re in Calgary, Winnipeg, Vancouver or Toronto, walkability plays a key factor in the real estate market. And while there are differences between each city, Hawkins sees this as a wholly Canadian issue.

“We as a country are very unwilling to invest deeply and make bold moves. Canada as a whole really approaches governance as, ‘We need to see somebody else do it successfully for 10 years and then we’ll do a milder version of what they did,’ and that’s exactly what’s happened with the Gastown pedestrian pilot,” he points out.

“I don’t think the City went far enough with it. They’re very averse to taking risks and doing things boldly, the way that other cities, like Paris, are willing to really invest in public spaces.”

Montreal: A potential source of inspiration

Widely known as one of the most walkable cities in Canada, garnering comparisons to other European cities like Paris, Montreal may be poised to serve as an inspiration point for the rest of the country.

With a Walk Score of 65 — lower than Vancouver’s —…



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Tags: CanadasCentersDevelopmentestateImpactrealUrbanWalkability
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