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5 Takeaways From CBRE’s New Retail Rent Survey
September 21, 2026 5 Minute Read
No matter what we do or where we live, we’re all shoppers.
What’s happening in the world of Canadian retail? According to CBRE’s new H1 2026 Retail Rent Survey, the sector is broadly healthy with vacancy remaining stable across key retail formats, supported by sustained population growth in select cities and consistent leasing demand from brands.
“While trade issues will impact Canadian consumer sentiment, the long-term trajectory for our retail sector is strong,” says CBRE Senior Vice President Alex Edmison.
Here are five takeaways from the report.
1. Health And Wellness Take The Lead
Demand is high in the health, wellness and medical sectors as providers seek strategically located real estate to improve patient access and the global wellness economy continues to surge.
Medtech firms are recognizing the importance of physical space for research and collaboration, creating environments that enhance customer engagement, clinical partnerships and growth opportunities.
Fitness and beauty services continue to perform well. Both premium and discount gyms, especially in Ontario and Western Canada.
2. Everyday Needs
Businesses that serve everyday needs are driving a significant share of leasing activity, including grocery, pharmacy, childcare, medical, pet care, wellness and convenience stores.
Less susceptible to short-term economic fluctuations, these categories provide operators and investors with confidence to expand in uncertain environments, as well as provide natural foot traffic to other retailers in the area.
Loblaw Cos. has announced 75 new store openings across Canada in 2026 and have already opened 38 stores and pharmacies in the first half of the year. Waterloo city council has approved zoning for three new grocery stores, adding 130,000 sq. ft. of new grocery space, while Calgary is seeing a noticeable uptick in grocery-anchored retail centres in suburban areas.
3. Luxury Pulls Back, Athleisure Steps Forward
Canada’s luxury and apparel sector is undergoing a notable shift in composition. Traditional luxury groups have pulled back on new leasing activity amid economic uncertainty among aspirational shoppers.
On the other hand, mid-tier contemporary fashion and athleisure brands are capturing premium retail space in top corridors, competing for flagship locations in urban markets. Toronto’s Yorkville neighbourhood – known primarily as a hub for luxury brands – is now home to the likes of Alo Yoga, Arc’teryx and Aritzia.
Japanese apparel brand UNIQLO is slated to open in Conestoga Mall in Waterloo this year, part of a larger expansion for the retailer, which plans to open five stores across Canada this fall.
4. QSR Restaurants Expand
Quick-service restaurants are performing well, particularly with the use of menu innovation and loyalty programs. Notable activity includes recent brand acquisitions by Happy Belly and Foodtastic, as well as expansion from McDonald’s, Tim Hortons, Shake Shack and Jersey Mike’s.
Halifax is seeing activity from quick-service restaurants in highly visible locations, with Rosie’s Burgers opening their first Atlantic Canada location right next to the Halifax Convention Centre. In Winnipeg a new mixed-use site just north of city limits is already generating regional draw with an operational McDonald’s.
5. Suburban Retail Markets Thrive
Suburban fundamentals excellent in key retail formats, especially grocery-anchored centres, supported by population growth in select cities and consistent tenant demand.
This trend is especially pronounced in Calgary, which has one of the strongest suburban retail markets in Canada. Vacancy in many growth corridors is full as retailers pursue rapidly growing trade areas.
Edmonton’s suburban retail market continues to thrive, fueled by population growth and new development across the region, while Montreal’s suburban nodes are benefitting from all-time low vacancy for quality space.
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