Ottawa’s retail market is moving in two different directions, with vacant storefronts still visible in parts of the downtown core while commercial space becomes increasingly difficult to find in the suburbs, according to a new report. Commercial real estate firm CRBE Group describes Ottawa’s market as “polarized” in its H1 2026 Retail Rent Survey, saying downtown vacancy remains high while suburban vacancy remains low. The report says there has been an increase in businesses inquiring about space downtown and in the ByWard Market, but many potential deals remain in a holding pattern as tenants wait to see whether the federal government’s return-to-office strategy will bring more people, and spending, back to the core. Along Bank Street in Centretown, the picture can vary from one storefront to the next. Samir El-Hage opened Mocha Mirage Café six months ago and says business has been good, with foot traffic increasing since the café opened. He is also preparing for a further boost as more employees return to downtown offices. “We are planning to increase staff during lunch hours so that customers would not find it hard to come grab a bite and go back to their offices,” he said. Still, boarded up and vacant storefronts remain visible nearby. El-Hage said filling those spaces could have a broader benefit for the neighbourhood. “If the businesses across the street were open, it brings up more traffic, and foot traffic benefits everybody,” he said. “I don’t see opening up other places as competition.” Centretown Business Improvement Area executive director Sabrina Lemay says the neighbourhood remains in transition. “There are some businesses that, yes, are still struggling. We know the downtown core is still in the process of revitalization,” Lemay said. “It is taking more time than we would like.” She says there are also new businesses moving in and redevelopment underway, even if some potential tenants remain cautious. “People are waiting, and granted they should,” Lemay said. “Everybody’s nervous. The economy has changed. Life has changed so fast. Jumping into something right away isn’t necessarily a strategic approach, but we are hopeful.” Growing demand for large suburban retail spaces The situation is markedly different in Ottawa’s suburbs. CBRE says new retail developments are being planned with a particular focus on the city’s south end. However, developers continue to prioritize residential projects, leaving commercial expansion in a secondary role. The report also identifies growing demand in Ottawa for larger retail spaces between 10,000 and 30,000 square feet. Recent transactions have been dominated by medical, entertainment and service providers, reflecting a broader shift toward experiential and specialized businesses. The trend is playing out in Barrhaven, where Axis Ride Collective opened just two months ago. Co-founder Sarah Boucher says finding the right commercial space was a challenge. “Commercial space in Barrhaven is hard to come by, especially at an affordable price,” Boucher said. “So, we saw such an amazing spot come up, we had to jump on it.” Axis offers rhythm-based indoor cycling classes placing it among the services and wellness businesses CBRE says are increasingly active in the retail market. Bouchers says the decision to open in Barrhaven was also about serving people closer to where they spend their everyday lives. “It’s where we love, work play,” she said. “As a business, we wanted to open in the space that we spend our time in as well.” Nationally, CBRE says suburban retail fundamentals remain particularly strong, with tight availability support by population growth and consistent tenant demand. Businesses serving everyday needs are increasingly trying to secure locations early in high-growth suburban markets, where the supply of prime retail sites is limited. The divide is also showing up in rents. CBRE says asking rents at Ottawa suburb locations increased over the first half of 2026, while rents declined in the ByWard Market, and in some neighbourhood retail categories. ByWard Market asking rents range from $25 to $45 per square foot, while the Glebe and Westboro are both listed at $40 to $55 per square foot and remained stable
