By the end of 2019, the Thompson Okanagan retail market will deliver just under 124,000 square feet of new supply, a notable increase from 2018, which saw just over 73,000 square feet of new inventory added to the market.
- Strong leasing activity in Kelowna, particularly in the Downtown and Suburban submarkets, has helped the vacancy rate drop by 40 bps since the second quarter of 2018 reaching 4.4% in the fourth quarter of 2018.
- Currently, new mixed-use residential projects in Kelowna account for more than 68,000 square feet of new retail supply under construction and just over 97,000 square feet of new retail supply proposed for development.
- For a second reporting period in a row, the Vernon retail market reported negative absorption as the vacancy rate increased 0.5% reaching 4.9% in the fourth quarter of 2018.
- Vernon has seen no new retail supply since the second quarter of 2017 but is expected to deliver 19,412 square feet of newly renovated retail space at the corner of 30th Avenue and 33rd Street during Q1 2019.