Article
Toronto Retail Sees the Rise of Contemporary Fashion and Athleisure
April 20, 2026 3 Minute Read
CBRE’s Arlin Markowitz says Toronto’s retail landscape is being redefined by the rise of contemporary fashion and a boom in athleisure brands.
“Much of the vacancy in the city’s key shopping nodes like Bloor-Yorkville, the Ossington Avenue strip and Yorkdale Shopping Centre is being backfilled by contemporary fashion and athleisure retailers,” he says. “Both categories are poised to have a lasting impact on the city’s retail sector.”
In Yorkville, a node that’s synonymous with luxury retail, brands such as Aritzia, Arc’teryx and Alo Yoga are now neighbours to legacy luxury retailers like Tiffany & Co and Bvlgari. "It's a direct response to changing consumer demand,” Markowitz says.
‘Upper-Middle’ Shoppers Come to the Fore
Much has been made about the current “K-shaped” economy, which for retail means more high-income consumers driving luxury spending while low- and middle-income shoppers opt for discount and value brands.
While Markowitz acknowledges the trend, he’s noticing it beginning to fade. “What we’re seeing now is the middle, particularly the upper-middle consumer, coming to the forefront.”
Markowitz and his Urban Retail Team at CBRE helped South Korean eyewear brand Gentle Monster secure its first-ever storefront at Yorkdale Shopping Centre, a 5,300 sq. ft. space in one of the city’s most luxury-oriented malls.
Toronto’s Ossington strip, a hotspot for trendy boutiques, is witnessing the arrival of brands like Carhartt WIP and Mejuri fine jewelry while Bloor-Yorkville recently welcomed modern Italian fashion brands Luca Faloni and Eleventy.
“And the trend is not just in fashion retail,” Markowitz notes. “The food and beverage industry is seeing the exact same pattern, with high-end restaurants giving way to fine casual dining.”
Cactus Club co-founder Richard Jaffray recently bought a significant stake in Keg Restaurants as diners seek out high quality eateries that won’t break the bank. And JOEY Restaurants’ new flagship location in Toronto’s financial district is seeing more foot traffic than higher-end offerings in the area, according to Markowitz.
Get Space While You Can
Markowitz sees 2026 being the year for retailers to take action as quality retail locations become more scarce.
“There are fewer developers building new retail space due to high construction costs and economic uncertainty,” he says. “And with condo development in Toronto being curtailed, retailers that would have found homes at the bottom of those new residential buildings no longer have that option.”
As such, he expects it to be a landlord’s retail market in 2027 and 2028, with heated competition for ground-floor, 3,000-5,000 sq. ft. spaces that don’t require a significant investment of capital. “So if you’re a retailer,” Markowitz says, “2026 is definitely the year to go out and grab space while it’s still available.”
Recent Insights
-
CBRE’s Arlin Markowitz says Toronto’s retail landscape is being redefined by the rise of contemporary fashion and a boom in athleisure brands.
-
CBRE’s Jeffrey Lougheed helped Vancouver-based apparel brand KIT + ACE secure a new 2,200 sq. ft. flagship location on Victoria’s high-end Government Street, one of the city’s most iconic and active retail nodes.
-
Venkat Ramadoss and Kai Tai Li of CBRE’s National Investment Team have sold a nine-building, 558-unit apartment complex in London, ON, to Pier 4 Real Estate Investment Trust for $102.5 million.
Stay In The Know
Subscribe today and join hundreds of professionals who get the latest blogs delivered straight to their inbox.