Cherry Lane Mall, a long-standing retail hub in Penticton, British Columbia, has officially been listed for sale. The shopping center, built in 1975, covers 21.5 acres and has served the South Okanagan and Similkameen Valley communities for decades. It is now seeking a new owner following the recent closure of its former flagship tenant, Hudson’s Bay.
The former department store, which occupied the largest unit in the mall at 94,643 square feet, closed its doors after reportedly failing to meet payment obligations. Its departure has opened the door for new investment and possible redevelopment.
Despite the closure of Hudson’s Bay, Cherry Lane Mall remains a strong performer in the region’s commercial property market. Excluding the now-vacant anchor space, the mall retains a solid occupancy rate of 90.7%. More than 62% of its base rental income comes from reliable anchor tenants such as Save-On-Foods, London Drugs, Valley First Credit Union, Angry Otter Liquor, and CIBC.
JLL Capital Markets, a well-established real estate advisory firm, is managing the sale. Kevin Douglas, an executive vice president at JLL, described the opportunity as rare and valuable. In a public post, he highlighted the chance to either repurpose or redevelop the large vacant space formerly held by Hudson’s Bay.
Douglas emphasized that the mall’s existing income, combined with its growth potential, offers a compelling value for prospective buyers. With the departure of the Bay, investors have the flexibility to redesign the space in a way that suits changing retail trends or expand into mixed-use development.
The property was most recently assessed at $68.76 million by BC Assessment, based on a valuation conducted on July 1, 2024. This figure reflects both the land’s value and the mall’s income-generating capacity, even in its current transitional state.
Cherry Lane Mall has been a key commercial and social destination for local residents since the 1970s. Its strategic location and strong tenant mix have kept it relevant even as retail landscapes across Canada shift toward online shopping and smaller, specialized storefronts.
The listing comes at a time when many traditional malls are being reimagined. Developers are now looking to blend shopping, services, residential space, and entertainment to meet evolving consumer needs. Cherry Lane Mall could be a candidate for this type of transformation, especially with a large vacant anchor space available for redesign.
In recent years, mid-sized Canadian cities like Penticton have seen renewed interest from investors. Factors like population growth, lifestyle appeal, and lower development costs compared to larger urban centers are attracting new buyers. As such, Cherry Lane Mall may appeal to both local and national developers interested in retail, mixed-use, or even residential projects.
The sale process is still in its early stages. Interested parties can contact JLL Capital Markets for further information and to explore development possibilities. The site’s size, location, tenant base, and vacant anchor space offer a wide range of options for creative investors.
Whether Cherry Lane Mall will continue as a retail center or evolve into something new remains to be seen. For now, the property’s future depends on who steps in next.
