Retail real estate continues to be surprisingly robust, given the growth of online sales in recent years, according to the RE/MAX 2023 Commercial Real Estate Report. RE/MAX examined 12 commercial real estate markets from coast to coast, and found almost 92 per cent of markets (11/12) reported solid activity in retail nodes and shopping centres.
From storefront on major arteries to strip plazas and shopping malls, the bricks and mortar experience is resonating with today’s consumers. Investment dollars have been pouring into major shopping malls across the country as landlords seek to enhance the shopping experience.
Retail nodes are vibrant. Present examples include Bloor West Village and Queen Street West in Toronto, 4th Avenue, Alberni and Gastown in Vancouver. Yet, the future is in mixed-use development, as older buildings are demolished to make way on major arteries.
Malls are re-inventing themselves with a strong residential component to complement their retail operations. Lot of investment is being poured into these malls to improve choice, including more high-end restaurants, specialty shops, gyms, high-end/specialty grocery stores, etc. New construction primarily consists of purpose-built rentals and condominiums, with the odd office building
Landlords are also cashing in on the “Live-Work-Shop” phenomenon, with the number of residential applications on commercially zoned property growing across the country.
