Ottawa Retail Market Report

Government restraint creates near-term challenges. Ottawa’s retail sector faces a softer economic backdrop as federal workforce reductions and broader efficiency measures weigh on employment and consumer spending. The impact will be most pronounced downtown, where retailers already contend with weaker daytime foot traffic due to hybrid work. However, return-to-office mandates from the federal government and the City of Ottawa could provide an important offset. If implementation remains firm, increased weekday office attendance should restore some pedestrian activity and spending downtown, helping cushion the impact of public-sector downsizing.