Toronto Retail Market Report

Investors to watch urban versus suburban trends. Since 2021, suburban submarkets within the Greater Toronto Area have benefitted from hybrid work, a lower cost of living and historic immigration. During this time, retail spending grew, and space demand for neighbourhood and strip centres increased. In contrast, less foot traffic downtown caused the submarket’s vacancy rate to sit above the metrowide rate despite improving over 2024. Looking ahead, limited property supply and recent population gains will likely sustain an optimistic long-term outlook across most regions and formats. A larger manufacturing presence in suburban cities like Oshawa, Brampton and Mississauga could, however, impact retail performance amid looming tariff threats. That said, diversification and more service-related employment downtown that is less export-dependent may mitigate some trade risks, supporting a more stable retail performance.