The Value of Investing in Canadian Downtowns - International ...

PROSPERITY
Is the downtown’s economy robust and innovative?
Halifax Shipyards was awarded a $25 billion federal
government contract in October 2011. While the ship
building yards are not located downtown, this
announcement will bolster the economy of Halifax
and Nova Scotia for years to come. New apartments
and homes will be needed to accommodate new
employees and older homes are expected to rise in
value. Office, industrial and retail markets will also
receive a boost, with new and growing suppliers
supporting the Halifax Shipyards and its employees. 4
Residential Development
Increasing residential density in the business district
is crucial to instilling vibrancy in downtown Halifax. 5
This densification began in the past decade, and the
number of dwellings downtown grew by almost a
quarter between 1996 and 2006, compared to 18%
citywide.
Office Development
Office development in downtown Halifax has been
relatively slow; between 2004-2010 office space grew
by 3% compared to 9% growth citywide. As a result of
strong growth in suburban office space, the portion of
downtown office space has declined from 48% in
2004 to 46% in 2010. This decline will need to be
reversed if downtown Halifax wishes to retain its
dominant position as the commercial centre of HRM.
Retail Development
There are several ‘high streets’ in downtown Halifax
that offer a range of retailing experiences. Granville
Mall is a pedestrian mall, Barrington Street is a
historic retailing strip, and Spring Garden Road also
serves as a popular location for retail.
4
Colliers International. (2011). Real Estate Report: Halifax, Nova Scotia.
Retrieved from::
http://www.collierscanada.com/~/media/Files/Research/2011/Halifax%20
Office%20Real%20Estate%20Report%202011%20Q3.ashx. Accessed
2012 January 16.
5
Taylor, R. (2011). Wanted: Downtown Dwellers. Retrieved from:
http://thechronicleherald.ca/business/33223-wanted-downtown-dwellers.
Accessed 2012 January 16.
39
Educational Institutions
HRM is home to many highly regarded educational
institutions. Northumberland College is located in the
downtown study area, as well as Nova Scotia
Community College and the Nova Scotia College of
Art & Design. Unfortunately the latter institution is
experiencing financial difficulty and may not continue
in its present form. Notable neighbours to downtown
Halifax include Dalhousie University, one of Canada’s
leading comprehensive research and teaching
universities, which serves 15,000 students.
Municipal Tax Base
In 2010, the downtown generated $40M in tax
revenue, which equates to approximately 8% of the
City’s property tax base. This proportion has
remained relatively steady since 2006, when the
downtown generated 7% of total property tax
revenue. The tax base downtown has grown at a
stronger rate each year than the tax base for the
HRM. More specifically, property tax generated by the
downtown grew 32% compared to 22% city wide from
2006 to 2010 indicating the high levels of growth
being achieved downtown.
Jobs
Downtown Halifax
has 29,360 jobs or
15% of HRM’s
total. Household
income downtown
is generally lower
than city-wide
despite higher
rates of post
secondary
education, which
likely reflects the
large student
population.
The no. of dwellings grew
22%
from 1996-2006, compared to 18%
more dwellings citywide.
Downtown has
46%
of office floor space
(4,427,078 sf)
Downtown has
29,360
jobs