Hillhurst / Kensington North Commercial Real Estate
Calgary's premier inner-city NW village commercial district. Independent retail, café culture, arts and professional services along 10th Street NW. Bow River corridor multifamily and office. No provincial income tax.
Hillhurst / Kensington North Commercial Real Estate Market Overview
Hillhurst and Kensington North form one of Calgary's most sought-after inner-city NW commercial precincts. The 10th Street NW and Kensington Road corridor anchors a walkable village that has maintained consistently low retail vacancy even as broader Calgary experienced market softening. Independent retailers, destination restaurants, specialty food purveyors, and professional services firms compete vigorously for limited street-front space.
The Bow River fringe along Memorial Drive NW provides a secondary commercial layer of professional office space in heritage and purpose-built buildings, complemented by purpose-built rental multifamily. Proximity to downtown Calgary (less than 2 km), transit access, and strong demographics — the area skews to high-income young professionals and established families — underpin values across all asset classes.
Mill rate stands at $17.18 per $1,000 of assessed value and Alberta levies no provincial income tax, materially improving after-tax yields for investors compared with most Canadian cities. Multifamily cap rates of 4.0–5.0% reflect the exceptional desirability of the Hillhurst address.
2025 Cap Rate & Rent Reference — Hillhurst / Kensington North
| Asset Class | Lease Rate | Sale Cap Rate | Typical Size | Key Drivers |
|---|---|---|---|---|
| 10th St NW Village Retail | $30–45/sf net | 5.5–6.5% | 500–3,000 sf | Village traffic, independent tenants, low vacancy |
| Kensington Rd Retail | $26–38/sf net | 5.5–7.0% | 800–4,000 sf | Café row, boutique, pedestrian district |
| Above-Retail Office | $18–26/sf gross | 6.5–8.0% | 500–5,000 sf | Professional, creative, medical |
| Heritage Office Conversion | $20–28/sf gross | 6.5–7.5% | 1,000–8,000 sf | Character space, boutique tenants |
| Walk-Up Multifamily | Market rent | 4.0–5.0% | 6–30 units | Inner-city demand, low vacancy, Bow River |
| Purpose-Built Rental | Market rent | 4.0–4.75% | 20–80 units | High absorption, proximity to downtown |
| Mixed-Use Freehold | Varies | 5.0–6.5% | 2,000–12,000 sf | Retail + residential combination |
Frequently Asked Questions — Hillhurst / Kensington North Commercial Real Estate
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