Toronto Retail Market Report

Retail investors adapt to new opportunities. Toronto’s retail property sector is buoyed by a diverse and growing population, as well as a solid employment base offering high income potential. These factors aid consumer spending across a broad range of products and underpin the demand for physical retail space. Combined with muted supply growth, Toronto’s retail sector is well-positioned for long-term gains. Notably, there has recently been a change in consumer preferences, causing retailers and property owners to adapt to a new environment. E-commerce has grown significantly since 2019, prompting stakeholders to increasingly invest in technology in order to integrate online and offline sales channels. Experiential shopping is also growing in popularity due to this e-commerce competition, as well as younger generations prioritizing experiences over material goods. Retail property owners are now redesigning spaces and investing in technologies as well as leveraging data and analytics to adapt to this evolving trend.