Michael Kehoe, broker of record at Fairfield Commercial Real Estate, offers a 50-year perspective on the evolution of Canada’s commercial real estate industry, highlighting key retail trends, structural shifts, and the enduring importance of relationships.
Kehoe traces his career back to 1975, beginning in marketing roles at Southcentre Mall before moving into management and leasing with major developers. He describes the 1980s as a period of rapid expansion in Alberta’s shopping centre sector, followed by a pivotal shift in the mid-1990s when institutional investors, including pension funds and REITs, transformed ownership structures. According to Kehoe, the industry is now seeing a partial return to entrepreneurial ownership as institutions divest non-core assets.
A major theme in Kehoe’s outlook is the constant evolution of shopping centres. He notes that while malls have become more standardized with national and international brands, there is growing pressure to differentiate through local tenants and unique experiences. He points to the rise of non-traditional uses—such as fitness, healthcare, and recreational amenities—as evidence of how landlords are repurposing space to match changing consumer behaviour.
Despite the growth of e-commerce, Kehoe emphasizes the resilience of brick-and-mortar retail. He views physical stores as a critical component of an omnichannel strategy, offering tactile and social experiences that online platforms cannot replicate. At the same time, he acknowledges that technology, including AI, is accelerating change across the sector.
Kehoe also addresses challenges in downtown retail, particularly around public safety and shifting traffic patterns, but remains optimistic about long-term recovery driven by urban revitalization efforts.
Throughout the conversation, he underscores that commercial real estate remains fundamentally a relationship-driven business, where in-person interaction, market insight, and trust continue to be essential for success.
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