Retailers Face Tougher Search for Space as Construction Drops to 10-year Low: JLL
Store owners might be having a harder time finding rental property as the amount of retail space under construction in major Canadian markets dropped to its lowest level in a decade. 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.
The amount of new retail space under construction in Canada has fallen to its lowest point in ten years. In the first half of this year, construction starts measured 1.5 million square feet, a significant decrease from previous years. Factors contributing to this decline include increased building expenses, the repurposing of existing retail areas, and the cancellation of some mixed-use residential projects.
- Retail construction starts in major Canadian markets have reached a decade low.
- In the first half of this year, 1.5 million square feet of retail space started construction.
- This figure is down from 2.7 million square feet in the same period last year and 5.3 million square feet in the first half of 2016.
- Rising building costs, redevelopment of existing retail spaces, and cancelled residential projects with ground-floor retail are cited as reasons for the decline.
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