Victoria Retail Figures | Q4, 2023

‒ During Q4 2023, the Greater Victoria retail market recorded 457,000 sq. ft. of space available, representing a 1.0% increase quarter-over-quarter. ‒ The average asking rate dropped 1.4% quarter-over-quarter to $28.72 per sq. ft., with the outlier average rate of $54.38 per sq. ft. reported along the High Streets. ‒ Elevated interest rates have put pressure on landlords, causing them to consider absorbing longer free-rent periods to minimize tenant inducement allowances and conserve their cash position. ‒ The retail sector saw an influx of new entrants, relocations and expansions of existing occupiers over Q4 2023. This was particularly observed in the increased demand for space from quick-service restaurants, fitness groups, and daycare operators. ‒ In the downtown core, new retail space is predominantly driven by new mixed-use residential buildings with ground-floor commercial components. Currently, there is 39,000 sq. ft. of ground floor commercial space under construction and over 104,000 sq. ft. proposed in the Downtown Core over the next two years.