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Retailers face tougher search for space as construction drops to 10-year low: JLL
JLL said rising building costs and redevelopment are limiting new retail space, leaving retailers with fewer rental options as leasing weakens.
- Retail construction starts in major Canadian markets fell to a 10-year low, with commercial real estate firm JLL reporting 1.5 million square feet in the first half of this year.
- JLL senior vice-president of retail Paul Ferreira attributed the decline to rising building costs, redevelopment of existing retail space, and cancellation of residential projects with ground-floor stores.
- Leasing activity has also declined, making it more challenging for retailers to find space than 10 years ago. Ferreira said, "First and foremost, there isn't space to move into."
- Landlords are prioritizing supermarkets to anchor developments, with 96 percent of new properties built since 2022 featuring grocery tenants. This reflects grocer stability post-COVID.
- Dining establishments account for 33 percent of new openings, but Ferreira questioned sustainability, saying, "I think we'll start to see the market respond to that.
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"There are no spaces available to install," explains JLL's Senior Vice President.
·Montreal, Canada
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The Toronto Star+10 Reposted by 10 other sources
Retailers face tougher search for space as construction drops to 10-year low: JLL
Retail construction starts amounted to 1.5 million square feet in the first half of this year, commercial real estate firm JLL said in a new report.
·Toronto, Canada
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Total News Sources12
Leaning Left6Leaning Right1Center4Last UpdatedBias Distribution55% Left
Bias Distribution
- 55% of the sources lean Left
55% Left
L 55%
C 36%
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