Economic growth in the Thompson Okanagan continues to be one of the main driving forces for retail activity in the region, drawing interest from both national and local retailers.
- Densification throughout Kelowna's urban centres is booming, particularly through mixed-use developments to accommodate the needs of the growing population. Over the next three years, at least 83,000 square feet of new retail supply will be added to the market inside new residential developments and we anticipate more projects in the future.
- Several lease transactions, particularly along the Highway 97 corridor, have helped drop the retail vacancy rate in Kelowna from 3.41% in Q2 2017 to 3.29% in Q4 2017.
- Development activity remains strong in Vernon, with approximately 5,600 square feet currently under construction and another 44,000 square feet planned for development.
- Mixed-use developments are starting to surge in popularity in response to Vernon's growing population, which climbed 1.6% in 2016. Vernon recently completed BX Crossing and has plans for a six storey mixed-use building at the former Legion site, which will include 70 residential units and 12,107 square feet of commercial space.
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