SW Ontario Retail Market Report

Demand to moderate amid uncertainties. With a 3.2 per cent increase in population in 2024, Southwestern Ontario’s retail sector has continued to benefit from robust consumer demand, driving the vacancy rate down to 1.1 per cent – the lowest among major Canadian metros. Complementing this demand boost, limited supply growth further tightened market conditions, making quality spaces harder to find. In 2025, however, market conditions are adjusting to evolving demand and supply dynamics. The tightening of Canada’s immigration policy is expected to have a more significant impact on Southwestern Ontario, where post-pandemic population growth has been largely driven by an influx of temporary residents. Additionally, trade tensions may disproportionately affect the metro area due to its manufacturing- and trade-driven economy. The job market in Southwestern Ontario could face mounting pressure as a result, impacting consumer budgets and softening demand for retail space this year.