Ottawa's 'Essential Retail' Sector Is Booming

Ottawa’s retail capital markets have been experiencing a boom in recent quarters. Between July 2021 and June 2022, over $900 million in retail real estate traded hands, far above pre-pandemic levels. Some of the largest retail transactions in recent quarters have been for shopping centres offering essential retail to consumers. These types of stores tend to perform well during tough economic times selling goods such as groceries and medicine that consumers continue to purchase in the midst of an economic downturn. Now, with the probability of a Canadian recession over the next 12 months sitting around 60%, many investors are interested in increasing their defensive positioning.