Montreal Retail Market Report

Consumer health to underpin a stable outlook. Montreal’s retail sector prospects for 2026 are broadly positive, supported by steady consumer spending growth and improving economic conditions. Lower interest rates are expected to ease borrowing costs, while the city’s relatively modest household debt levels and elevated savings rate will help sustain purchasing power. These factors should underpin retail sales momentum through the year. However, much of this spending strength may be absorbed by existing retail formats rather than translating into significant new leasing activity. Lingering trade tensions and a softer manufacturing sector could continue to weigh on job creation, while a slowdown in immigration is likely to limit the expansion of the consumer base. As a result, many retailers may remain cautious and could delay expansion plans until greater clarity emerges on these fronts. On the supply side, development activity continues to be disciplined, with most upcoming projects concentrated in suburban areas as part of larger mixed-use communities. This controlled pipeline should help maintain market stability through 2026.