Saskatoon’s retail market showed resiliency in 2022, largely due to high demand in the city’s east-side markets.
- The overall retail vacancy rate declined slightly year-over-year and is currently sitting at 3.0%. The west-side markets are particularly low on available space, with a 1.0% vacancy rate between the combined West Arterial and West Suburban Retail Markets.
- The reduction in city-wide retail vacancy has been reflected in the increase in asking net rents. The weighted asking net rent across all markets increased to $24.67 from $23.34 per square foot in 2022, marking a yearly increase of 5.7%.
- High interest rates are expected to dampen the demand for new retail spaces in the short term, as tenants struggle to secure financing. One trend ahead of this curve has seen landlords offering new tenants increased incentives, including limited terms of free rent and longer fixturing periods.