CoStar sees Canada retail vacancy holding near 2.5% as Hudson’s Bay closures ripple through malls - CSGP News | RalliesCoStar sees Canada retail vacancy holding near 2.5% as Hudson’s Bay closures ripple through malls
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CSGP• Canada retail vacancy and mall softness
- CoStar forecast sees Canada retail vacancy holding near 2.5% over the next year as Hudson’s Bay closures continue to reverberate.
- Mall vacancy jumped to 8% from 3% in Q2 2025; net absorption totaled -5 million square feet.
- Retail construction remained subdued; starts stayed below 1 million square feet per quarter since Q3 2025.
- Rent growth slowed to just above 2% in Q2 2026 from about 4% in Q1 2025; projected near 0% by Q2 2027.
- Forecast calls for rent growth to rebound to about 3% by end-2028 as absorption strengthens; risks include tariffs, fuel costs, population decline.
