Many questioned the future of the bricks-and-mortar retail outlets when local shops were closed or restricted to delivery or curbside pickup. The conversion to e-commerce or online shopping during the pandemic was rapid.
Would they ever be viable again because shoppers had permanently made the shift to online? Or would we see a renaissance in in-person shopping?
Well, the indicators suggest the latter has some momentum. We’ve seen e-commerce activity decline while visits to the store are rising. There’s further evidence of this return to the mall in leasing activity.
A new report by ICR in Saskatoon shows retail space absorption is rising as more retailers sign on for addition square footage, something they note is part of a national trend back to in-person shopping.
All other segments of commercial real estate are seeing similar traction with every element – office space, both downtown and in suburban areas, as well industrial and retail – saw declining vacancy rates. In fact, industrial set a new record low on vacancies as buyers and tenants appear unconcerned about rising interest rates.
