Some businesses have been struggling to survive this year, especially brick-and-mortar stores with no online storefronts. Ecommerce has been booming, but that doesn’t mean that retail is dead. Retail space is still needed worldwide, including Canada, where demand for retail space continues to increase.
No online store can provide the same customer experience as a physical store. Online stores are convenient, especially now in times of the pandemic, but they don’t have the necessary human factor.
Within any retail space, people can communicate and connect. They can have a personalized, compelling, and memorable experience that entice them to keep coming back. Brands and customers can form meaningful, long-term relationships, each learning more about one another.
What’s more, people prefer a hands-on shopping experience, which isn’t exactly possible online. When they can engage with products in-store, they can have a much better experience.
That’s precisely why retail will survive the pandemic and definitely thrive beyond it.
The pandemic doesn’t seem to hurt the retail commercial real estate market in Canada to a great extent. Although there have been drops in retail sales across the country, retail CRE investors are still investing in retail space.
They still see massive potential in Canadian retail CRE assets, as numerous market reports have shown promising future figures. After all, the market has been steadily growing for years.
And precisely because of people’s need for in-store shopping experiences, more and more investors keep turning to Canadian retail CRE despite the pandemic.
One of the most significant projects at the moment is the redevelopment of the St. Lawrence Market Complex in Toronto. The city’s valuable historical site will feature retail space, an area for events, a café, a farmers’ market, a seniors’ centre, provincial courts, and an underground parking garage.
The completion of the St. Lawrence Market North building was scheduled for 2020, however due to the pandemic and other factors, it was recently delayed until 2023.
Regardless, due to demand of the weekly farmers’ market, the city of Toronto has allowed the market to stay open to customers. They can continue to operate and serve their customers in their temporary outdoor tent space until 2023. This says a lot about the demand for retail in this area. Once the project is completed, it is expected to attract many vendors and customers.
Retail CRE is holding strong in Canada, and retail CRE investors would be smart to act fast and take advantage of the expected increase in demand for retail space. The sooner you act, the sooner you can reap the benefits as retail CRE in Canada continues to grow.
Contact ReDev Properties for more details.