SW Ontario Retail Market Report

Supply measures a key driver in retail property performance. Due to potential concerns surrounding e-commerce adoption, retail property supply growth in Southwestern Ontario has largely been trending down over the past decade. At the same time, the region saw its population expand by nearly 10 per cent over the past five years. A large share of this growth has been driven by intraprovincial migration, as many households from the neighbouring Greater Toronto Area moved to the metro due its lower cost of living. In order to give these new residents continued access to Toronto-based jobs, mixed-use developments surrounding suburban train lines have been growing in popularity. Not only does this allow for greater connectivity within Southwestern Ontario, but it further limits retail supply growth. Combining these factors, Southwestern Ontario now finds itself with a shortage of new, high-quality retail supply, facilitating a positive long-term outlook for the sector.