Business Valuation Kelowna Defined

In 2026, Kelowna has evolved into a "High-Velocity Tech & Tourism Hybrid." While Vancouver struggles with a "Stagnant Reset" and Calgary balances energy diversification, Kelowna differentiates itself through "Strategic Mid-Sized Scalability."

1. The "Gateway" Multiple: YLW Phase 1 Completion

The single most significant infrastructure driver in 2026 is the completion of Phase 1 of the $108M Kelowna International Airport (YLW) Terminal Expansion (January 2026).

• Connectivity Alpha: As the second busiest airport in BC, the expansion—including the new departures lounge and high-tech security screening—has shifted Kelowna from a "seasonal destination" to a year-round national business hub.
• Valuation Impact: Businesses in logistics, hospitality, and aviation-service sectors are commanding a "Connectivity Premium." The airport's economic impact now exceeds $2 Billion, and any business tied to the airport campus must include a higher "Terminal Value" (TV) due to the 103% increase in jobs supported by the hub since 2014.

2. Tech: The "Fastest-Growing" Multiplier

By 2026, the Okanagan tech sector contributes over $4.98 Billion annually to the local economy.

• Kelowna vs. Vancouver: While Vancouver is the "Head Office" hub, Kelowna is the "Innovation Hub." With 787+ tech companies and a 58% profitability rate among firms, valuations here are less about "burn rates" and more about sustainable growth.
• The "Retention Moat": 65% of Kelowna tech companies are expanding in 2026. Because of the Kelowna Innovation Centre, businesses are valued with a "Collaboration Premium"—the density of startups and post-secondary R&D (UBCO/Okanagan College) creates a labor stability that is harder to find in the high-churn Vancouver market.

3. Real Estate: The "Bifurcated" Risk Profile

In 2026, Kelowna's real estate is more volatile than Calgary's but offers higher upside than Vancouver's.

• Industrial Scarcity: While Calgary has seen a massive influx of industrial supply, Kelowna's industrial market is rebounding sharply in 2026. New projects like the 144,000 sq. ft. Beedie development at Pier Mac Way are being absorbed quickly.
• The "Stopover" Shift: Kelowna industrial assets are no longer viewed as a "stop between Calgary and Vancouver"—they are valued as strategic distribution points for the interior.
• Residential Caution: Unlike Calgary's relatively balanced market, Kelowna remains at high risk for a "correction" in 2026. When I value a local retail or service firm, I apply a higher "Sensitivity Analysis" to discretionary spending lines, as mortgage-rate fatigue continues to weigh on local household budgets.

4. Fiscal Stability: The "4.37%" Efficiency

Kelowna City Council approved a 4.37% tax increase for 2026, one of the lowest in British Columbia.

• Comparison: While Vancouver and other major centres deal with double-digit pressures or massive infrastructure deficits, Kelowna's budget is surgically focused on Public Safety and Transportation.
• Valuation Impact: This low municipal tax rate provides a "Margin Cushion." In a DCF (Discounted Cash Flow) model, Kelowna businesses show better Operating Leverage than Vancouver firms, where municipal costs and commercial property taxes are significantly more aggressive.