Toronto’s retail real estate market is becoming more balanced as demand
increases despite high interest rates and a decrease in net absorption, says a new
JLL report.

The commercial real estate service firm anticipates that landlords should be
able to maintain stable occupancy rates as low construction completions create
more competition for new retail space.

Despite experiencing ongoing challenges, the downtown office market is having
a positive effect on retail as more workers return to the workplace instead of
working from home. New office amenities, designed to maintain rent levels, and
a flight to quality are also aiding the retail property sector.

Retail real estate market stability is also being driven by transit and
infrastructure projects, local governments’ focus on new high-density,
multi-family housing and the province’s emphasis on high-density developments
in strategic growth areas, said JLL in a separate
July report.