The retail vacancy rate in downtown Victoria has spiked to 7 per cent, according to NAI Commercial, while space in power centres and regional malls remains tight with a vacancy in the 2 per cent to 3 per cent range. Downtown retail is being affected by a rise in British Columbia's minimum wage and a soft tourism market, analysts say, but it could also reflect a shift in the market.
A report from Colliers International noted that there has been investment in downtown heritage projects like the Oriental Hotel, which has filled its retail spaces.
Greater Victoria Chamber of Commerce CEO Bruce Carter said that downtown retail is also affected by a change in consumers. Carter noted that the antique retail trade has suffered, likely at the hands of changing demographics and interests. "That group is getting younger and more active," he said. "When they go on vacation they are more likely to go whale watching or kayaking than buy an antique end table."
from Western Investor June 2012
