Vancouver retail insight - Fall 2022
Retail leasing in Vancouver continues to be robust with vacancies continuing to trend downwards.
- Heli Brecailo
- Sharu Thulasi
The expectations for the second half of 2022 continue to stay strong, as the retail market has been resilient throughout the summer months.
Asking retail rents have stabilized over the summer but are expected to slightly rise over the following months. Due to the current tenant demand we are seeing, net rents are expected to feel slight upward pressure while vacancy rates decline even further.
The retail space has become even tighter as availability further drops from the previous quarter and developers postpone construction due to an increase in construction costs.
Food services and bars have made a tremendous comeback over the summer and sales have been trending upwards.
Enclosed malls are continuing to thrive with increased consumer confidence and a desire to be in a more social setting.
Mixed-use developments with retail components are occurring in the suburbs because of land shortages and the high prices in the city.
The trend to move in remains stronger than the trend to move out, as tenants are thoroughly searching for old and new vacant spaces to start their businesses.
Interest rates are having a negative impact on construction as developers have put a pause on their development plans.
Demand for more talented employees is also leading to rising labour costs.
EV continues to increase its retail locations in the region. Automobile makers are finding innovative ways to market their product in order to differentiate themselves from their competitors.
Increasing inflation, rising interest rates, labour shortages, and the war in Ukraine are all adding to consumer uncertainty.
The summer in Vancouver didn’t call for much concern regarding COVID-19.
Tourism that has been helping the downtown core of Vancouver for many years has finally seen a rebound after 2 years of decreased travel due to COVID-19.
Downtown foot traffic has not fully returned to pre-pandemic numbers; however, they have started to see an increase.