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Special Report

Canada Retail National Report

3Q 2022

Strong Consumer Base Serves as a Backbone;
Macro Conditions Overshadow Near-Term Outlook

Robust recovery led by healthy retail demand. Solid employment growth, excess household savings, the removal of pandemic-related restrictions, an uptick in immigration and a further improvement in tourism have worked in tandem this year to aid a consumer-led recovery in the retail market. This has propelled leasing activity to remain elevated after a strong rebound last year. The vacancy rate declined steadily to 2.0 per cent as a result, which is 10 basis points below the 2019 level. Out of the six major metros, Vancouver remained the tightest market with its ultra-low vacancy rate of 1.2 per cent, which was partly driven by the return of tourism. Edmonton saw the largest yearly drop in availability of 150 basis points, with local net absorption far outpacing completions. Across all major markets, tenant demand for space improved at a solid pace in the suburban areas while remaining relatively subdued in the downtown core, mainly due to continued delays in a broad-based return-to-office movement.
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