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thewhig.comSEP 82 min read$CSGP

Canada’s Retail Market Is Still Recuperating From the Closure of Hudson’s Bay Stores

Canada's retail vacancy rate is expected to remain near 2.5% as the sector recovers from Hudson’s Bay store closures, according to CoStar Group. Vacancy spiked to 8% in Q2 2025, with net absorption at -5M sq ft. Rent growth is slowing, projected to reach 0% by Q2 2027 before rebounding to 3% by 2028. CoStar Group (CSGP) is a global real estate data and analytics provider.

Original reporting
thewhig.com
Published Sep 8, 2026, 1:30 PM UTC
Analysis
AlphAI AI DeskAI-generated
Added to AlphAI Sep 8, 2026, 2:26 PM UTC. Informational, not investment advice.
How this was made
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Canada’s Retail Market Is Still Recuperating From the Closure of Hudson’s Bay Stores — source image
Source · thewhig.com
Decision brief

The 30-second read

$CSGPNeutralLow
01

Why it matters

The forecast suggests a prolonged period of soft absorption and rent growth near zero, which may depress valuations for Canadian retail landlords and REITs.

02

Market read

The new outlook could influence investment decisions in Canadian retail real estate and related REITs.

03

What to watch

Potential policy interventions or major tenant commitments could mitigate vacancy pressures.

Relevance 5/10Novelty 5/10Timing: published Sep 8 2026

Background

CoStar Group, a US-listed commercial real estate data provider, issued a forecast on Canadian retail vacancy and rent growth trends following the 2025 closure of Hudson's Bay stores.

Company-level read

Ticker impact

$CSGPNeutralMedium confidence
Context

CoStar Group released a new forecast showing Canadian retail vacancy rates steady and rent growth decelerating through 2027.

Expected impact

Potential modest downside for retail property stocks and REITs tied to Canadian malls.

Evidence & confidence

The outlook signals weaker demand for retail space, which could affect earnings forecasts for companies with exposure to Canadian retail real estate.

Market effects

Sector

Highlights headwinds for Canadian retail real estate sector and may influence REIT pricing.

Regional

Canada's retail property market faces higher vacancy and slower rent growth, affecting local investors.

Global

Limited to investors with exposure to Canadian retail real estate; broader global impact minimal.

Counterpoint

What could challenge this read

If consumer spending rebounds faster than expected, the forecast could be overly pessimistic, supporting a rally in retail property stocks.

Key entities

  • company
    CoStar Group

    NASDAQ-listed provider of commercial real estate information (ticker CSGP).

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