Victoria’s commercial rents remain resilient according to new report

A newly released report shows that Victoria’s commercial rental market continues to be more resilient than many other Canadian cities.

According to Commercial Real Estate Services (CBRE), its Canada Retail Rent Survey H2 2025 highlights Victoria as a tourism-driven market with tight supply, steady demand and relatively stable asking rents across both downtown and suburban retail nodes.

The report points to a strong 2025 tourism season as a key driver, noting that 320 cruise ship visits brought roughly 1.2 million passengers to the region.

That influx helped boost downtown foot traffic, retail sales and hotel occupancy, supporting demand for streetfront retail space.

CBRE says downtown Victoria experienced noticeable turnover over the past year, particularly along Lower Johnson Street, where new retailers and national brands entered the market.

Elevated construction and build-out costs have also pushed many tenants to prioritize move-in-ready spaces over shell units, especially in the downtown core.

Suburban retail centres remain another bright spot, with grocery-anchored developments continuing to perform well amid limited new supply.

While Victoria’s rents remain well below those in Canada’s largest cities, the report suggests its fundamentals compare favourably.

Prime retail streets in Vancouver and Toronto continue to see significantly higher rents, but both markets face development slowdowns and space shortages that are reshaping leasing strategies.

By contrast, Victoria offers lower entry costs while still benefiting from strong pedestrian traffic, tourism and limited retail inventory.

Asking rents in Victoria vary widely by format and location. Prime downtown streets such as Government Street command between $40 and $70 per square foot, while Johnson Street ranges from $35 to $45 per square foot.

Suburban mixed-use projects can reach as high as $60 per square foot in top locations.

To put it in perspective, in Vancouver, prime high-street locations such as Alberni Street can command $195 to $300 per square foot, far exceeding Victoria’s top ranges. However, Vancouver is facing a slowed mixed-use development pipeline, which CBRE says could keep rents stable or rising due to constrained supply.

Toronto continues to lead the country in retail rental rates, particularly in luxury corridors. Bloor-Yorkville rents now range from $200 to $300 per square foot, driven by international luxury brands and extremely limited availability.

Like Victoria, Toronto is experiencing strong demand, but at a scale and price point that remains out of reach for many retailers.

CBRE describes Victoria’s overall vacancy levels as low in suburban areas and healthy downtown, positioning the city as one of the more stable retail markets heading into 2026.