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Must-have goods like groceries will keep retail real estate on good footing into 2024: Colliers

Shops in neighbourhood or open-air centres expect a profitable year in 2024 despite economic pressures on households
Stores that sell necessity-based items are expected to excel over the next two years, according to a new Colliers report. | BIV file photo

High inflation isn’t ideal for getting shoppers to open their wallets. But experts predict inflation isn’t exactly going to hurt retail real estate going into next year.

Vacancy rates at retail spaces in strip malls, neighbourhood centres and big box stores are set to decline one to two per cent over the next two years.

That’s according to a Dec. 6 report from Colliers Canada that attributes the expected success of these open-air locations to people shopping for necessities.

Stephanie Hannon, senior vice-president and national lead with Colliers Canada, says these spots are providing must-have goods like groceries and personal care.

“Necessity-based retail, despite low consumer confidence, is much more stable than retail overall,” said Hannon who works in retail services and real estate management services with Colliers.

Looking back on 2023, 42 per cent of open-air retailers say it has been profitable year, with 65 per cent predicting that 2024 will be profitable as well, according to the Colliers report.

More to come… 

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