Insights

Retail Isn’t Dead — It’s Just Reinventing in Atlantic Canada

The retail real estate landscape in Atlantic Canada continues to defy the national narrative of decline. While some markets across the country wrestle with excess supply and shifting consumer habits, Halifax and Moncton are proving that right-sized, experience-driven retail still has staying power.

Halifax: Experience and Everyday Necessity Drive the Market

As of Q2 2025, Halifax’s retail vacancy remains among the lowest of any Atlantic market - hovering around 4.1%, according to CBRE’s latest figures. Grocery-anchored plazas, service-oriented nodes, and mixed-use corridors like Spring Garden Road and Larry Uteck remain extremely tight, with average net asking rents sitting near $25.00 per sq. ft. for quality strip and high-street retail.

While national chains continue to rationalize footprints, local operators, restaurants, and boutique concepts are filling the gaps - creating a more authentic, community-driven retail mix. Halifax’s growing population, driven by continued in-migration and a thriving post-secondary ecosystem, is sustaining strong consumer spending and consistent tenant demand.

Developers are responding with smaller, flexible retail footprints, often integrated into mixed-use projects that pair retail with residential or office space - a model that ensures foot traffic throughout the week, not just on weekends.

Moncton: The Regional Retail Powerhouse

Moncton continues to punch above its weight as the retail hub of New Brunswick. Its centralized geography, strong logistics infrastructure, and steady population growth have positioned it as a magnet for both national and regional tenants.

According to Colliers, Q2 2025 retail vacancy in Greater Moncton sits at approximately 5.2%, with asking rents averaging $21.75 per sq. ft., up modestly year-over-year. Trinity Drive, Dieppe, and Mapleton Road corridors remain key retail draws, and grocery-anchored assets continue to outperform.

Investor appetite is strong, particularly for necessity-based retail and assets with stable long-term covenants. Cap rates for well-located retail plazas typically range from 6.25% to 6.75%, reflecting healthy confidence and limited new supply.

Retail Reinvention: The Common Thread

Across both provinces, the winners are the landlords and tenants who understand their audience. Consumers now value convenience, authenticity, and local engagement over sheer size or brand recognition.

• Grocery, pharmacy, and service-based retail continue to anchor stability.

• Experiential and local brands are breathing life back into downtown cores.

• Mixed-use integration is creating new investment resilience by diversifying revenue streams.

For property owners and investors, the key is adaptability. Whether it’s re-tenanting larger boxes into multi-tenant layouts, investing in curb appeal and outdoor amenities, or blending retail with residential, success in 2025 looks less like survival - and more like strategic reinvention.