Ottawa's decision to close the Canadian Consulate in Buffalo having an impact on the city's real estate market.

With the decision to close the consulate, the federal government is also selling six of the seven  properties it owns where staff and diplomats lived and stayed.

Arlene White with the Bi-National Tourism and Economic Alliance tells 610 CKTB's Tim Denis, the Canadian government also leased two floors in the HSBC tower building in downtown Buffalo.

She says a law firm with four floors in the tower is also moving out which is causing a lot of concern within the real estate market.

White adds there are also concerns that bi-national tourism and trade opportunities will be put in jeopardy because of the lack of a Canadian presence in Western New York

Ottawa decided to close the consulate for a number of reasons including changes to immigration law and the fact we also have a consulate in New York City.