Pandemic’s Effects on Retail Weigh on Commercial Real Estate
Wave of bankruptcies expected with another lockdown
News Analysis
As lockdowns and curfews ramp up across Canada, the retail sector’s struggles to adapt to the pandemic are playing a crucial role in determining what works and what doesn’t in commercial real estate.
Commercial real estate faces an assortment of challenges across the country, including high office vacancy rates in Calgary and demand for large industrial spaces for distribution centres in Vancouver, as reported by the regional managing directors of real estate services firm CBRE.
“Grocery-anchored retail with long-term leases and strong demographic continue to hold up well, while everything else is challenged,” said Jon Ramscar, CBRE Toronto managing director in his 2021 outlook.