CoStar sees Canada retail vacancy holding near 2.5% as Hudson’s Bay closures ripple through malls

• CoStar forecast sees Canada retail vacancy holding near 2.5% over the next year as Hudson’s Bay closures continue to reverberate.
• Mall vacancy jumped to 8% from 3% in Q2 2025; net absorption totaled -5 million square feet.
• Retail construction remained subdued; starts stayed below 1 million square feet per quarter since Q3 2025.
• Rent growth slowed to just above 2% in Q2 2026 from about 4% in Q1 2025; projected near 0% by Q2 2027.
• Forecast calls for rent growth to rebound to about 3% by end-2028 as absorption strengthens; risks include tariffs, fuel costs, population decline.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. CoStar Group Inc. published the original content used to generate this news brief via Business Wire (Ref. ID: 202609080900BIZWIRE_USPR_____20260908_BW846858) on September 08, 2026, and is solely responsible for the information contained therein.