Tapping the Red Maple

McKellar’s spending spree was aided by the weak U.S. dollar, which is attracting more Canadian vacationers and property shoppers.

"They want to benefit from that market right now and all the opportunities," says Alain Forget, head of the regional division of Royal Bank of Canada, which has five branches in Naples, Bonita Springs and Fort Myers.

Canadians who already have been making the 24-hour drive or taking one of the direct daily flights here are reaping the benefits of Southwest Florida’s housing market slump. McKellar and her husband, Archie, who have an industrial electrical contracting company in Ottawa and a part-time home in TwinEagles, are building a home in another Bonita Bay Group community, Mediterra.

"When our dollar got stronger and some incentives from Bonita Bay [came available], Mediterra became a possibility," Theresa says.

The Canadian contingent is gaining the attention of builders, developers, real estate agents, bankers and hoteliers. Earlier this year, Bonita Bay Group hosted a party for Canadian residents and guests. Royal Canada Bank entered the market this spring, converting previous Community Bank of Naples branches that it acquired last year. Hotels such as Embassy Suites are joining county and state marketing initiatives to showcase Florida or the region to Canadians.

"[Canada] may have been the ninth-best place to find business. Now they’ve jumped up to the fourth or the second," says Dan Sullivan, director of sales at Embassy Suites Fort Myers-Estero, a 150-bed hostelry that celebrated its second anniversary in June.

No figures were available, but Sullivan says he’s noticed quite a few visitors with Canadian addresses this past year. They’re staying longer than normal and shopping at nearby spots such as Miromar Outlets.

Toward the end of 2007, Bonita Bay Group noticed a small influx of Canadian buyers, heard reports from builders and sales associates about increased visits, and had more hits on its Web site from Canadian provinces. Through focus groups, it learned that Canadians were coming to Southwest Florida and finding Bonita Bay communities largely through word-of-mouth.

"It was really at that point that we decided we wanted to develop a strategy to target or pursue the Canadian market," says Jennifer Laderer, director of marketing for Bonita Bay Group.

The strategy relies heavily on resident referrals. About 70 people—residents from five communities and their friends—attended a party in March at Mediterra Beach Club in Naples.

Bonita Bay Group plans to establish relationships with Canadian brokers to market to people on their home turf and may visit its residents in Canada to provide information sessions. Another piece of the strategy is partnering with a recognizable brand, Royal Bank of Canada.

Results from its initial efforts are already visible, says Laderer. From first quarter 2007 to first quarter 2008, sales to Canadians in Bonita Bay properties tripled. At its Verandah community, for example, 13 percent of buyers in the first quarter were Canadians.

In Collier County last year, Canadians accounted for the largest contingent of foreign homebuyers, with 218 sales, according to Sunshine Multiple Listing Service provided by the Naples Area Board of Realtors.

Coldwell Banker real estate agent Doug Grant has seen a shift, with Canadians placing offers on properties priced $500,000 and up. He sold a $1.5 million condo to a Canadian this winter.

"They’re out there, and they’re definitely emboldened to make offers," says Grant, who has worked in the market for 20 years. "I’ve seen them really emerge here recently where I hadn’t seen them for years."

Grant hopes more doors will open for him in August at a retreat for Coldwell Banker top producers in Toronto.

Businesses seeking to attract the market should understand some of the issues that Canadians may bring up in purchasing decisions, such as tax and estate issues involved with buying homes, cars and other items, says Forget, a Canadian citizen who has lived in the U.S. for eight years. "For a lot of Canadians, sometimes it’s a drawback because they’re afraid to, not necessarily knowing the ballgame, rules, regulations," he says.

Entertaining and educating Canadians is a way to build their confidence, and, as Bonita Bay Group notably demonstrates, it’s a key to sealing deals.