Market Report
Ottawa Retail Market Report
2025 Investment Forecast
Various Developments and Public
Sector Mandates to Stimulate Urban Recovery
Downtown revitalization underway. Despite rising unemployment and a pullback in spending, Ottawa’s retail vacancy rate ended 2024 under 2.0 per cent. This resilience was largely seen in the suburban submarkets, which benefitted from robust population gains, hybrid work and muted property supply growth. In contrast, the metro’s downtown saw a sharp rise in vacancy to nearly 300 basis points above the citywide rate, as returns to the office have been slower than expected. Looking ahead, however, various efforts are underway to revitalize Ottawa’s downtown. Not only will the federal government’s returnto- work mandate increase foot traffic and consumer spending, but various large-scale projects – such as the LeBreton Flats redevelopment and the Zibi master-planned community – will bring more residents to the city core over the long term. Additionally, the Ottawa Senators recently announced they will build and relocate to a new downtown arena, while Live Nation will open a new music and entertainment venue late this year. Combined with falling borrowing costs, these factors will likely drive foot traffic in the area and support the metro’s retail property sector in the coming years.
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