CBRE anticipates vacancy will remain low into the foreseeable future and rental rates for quality properties will continue to appreciate at a modest rate.
CBRE said retail sentiment is positive, the market remains supply-constrained, and there is tenant demand in almost all sectors, particularly in grocery, restaurants, QSRs and those associated with general service-based uses, health and wellness, and fitness.
Food halls are growing in popularity in Canadian cities, highlighting their appeal as curated, community-focused spaces that offer diverse local cuisine and social experiences.
The report forecasts changes in Canadian retail driven by shifting consumer behaviour, prompting innovation among retailers. Despite economic challenges, steady retail spending preferences for in-person shopping suggest a positive outlook in 2024, says Arlin Markowitz.
Experts discussed the Canadian retail industry at the recent Vancouver Strategy and Leasing, highlighting a strong market as well as potential challenges ahead as consumers struggle.
The Competition Bureau is considering banning exclusive use clauses in commercial leases for grocery stores to increase competition and lower food prices, but experts disagree.
A variety of complicated factors are at play as Calgary retail space sees demand given market growth, while new supply is limited due to factors such as construction costs.
The report reveals a complex picture of the Canadian retail landscape, with some positive trends despite economic challenges such as inflation and interest rates.
Alex Edmison of CBRE says that a lack of new retail space is contributing to an upward trend in some markets with some asset classes in particular being strong.
The popular and rapidly expanding outerwear and fashion brand is relocating to a glossy new downtown development in one of the biggest office transactions in the city since the start of the pandemic.
The mix of retail, office and residential space will provide a centre of community and according to a broker will be "the single most exciting development project in Canadian history".