Ottawa Retail Market Report

Leasing options rise as employment cools. Ottawa’s retail sector softened modestly over the past year as vacancy moved higher amid new supply, tenant closures, and a weakening economic backdrop. Deliveries hit a recent high over the past 12 months, while the closure of Hudson’s Bay weighed on absorption. The metro’s economy has also begun to cool as federal spending restraints and workforce reductions dampen employment growth in the public administration sector, a key pillar of Ottawa’s economy. Slower population growth and moderating consumer spending have also tempered retail space demand, contributing to softer leasing — particularly in the downtown, where vacancy remains above suburban levels due to hybrid work dynamics.