Market Report
Southwestern Ontario Retail Market Report
2025 Investment Forecast
Retail Benefits From University Presence,
Tourist Attractions and Job Prospects
Diversity aids retail outlook. Southwestern Ontario’s retail property sector has benefitted from the metro’s lower cost of living driving intraprovincial migration and its vast university network fuelling a surge in foreign students. The market’s vacancy rate fell from roughly 3.0 per cent in 2019 to 1.1 per cent at the end of 2024. While recent changes to Canada’s immigration policies are set to curb the inflow of international students – poising some risk to the local retail sector – the long-term outlook remains optimistic. Not only has property supply growth been limited, but the metro also boosts a diverse economy with a strong footing in manufacturing, technology, health care and life sciences. Adding to this, recent incentives from the federal government are transforming the region into a key stop in the global supply chain of electric vehicle battery manufacturing. As a result, less restrictive interest rates are likely to spur job creation, aiding consumer spending and retail space demand in the latter half of 2025. Additionally, Southwestern Ontario is also home to a host of tourist attractions. A more friendly monetary environment will encourage discretionary spending, supporting retail performance – especially in the restaurant and food-related segment.
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