"We are certainly seeing growth in grocery, pharma and discount as well as the TJX banners (Winners, HomeSense and Marshalls) and
"Then we are also seeing in this kind of environment a significant return to service providers, whether they are nail salons, hair salons or medical uses, they are definitely net growers of space and certainly looking to occupy more and more of our existing space."
Gitlin's remarks came after
Retail occupancy for the real estate trust's third quarter increased by 20 basis points from the prior quarter to reach 97.8 per cent.
Analysts have been watching occupancy rates closely over the last few years as retailers have adjusted to shifting health measures triggered by the COVID-19 pandemic and changing consumer habits amid high inflation rates.
While some retailers shrank their footprints coming out of the health crisis, others have seen demand for their goods and services surge and are on the hunt for new spaces.
Properties measuring between 1,858 and 2,322 square meters are in high demand as are smaller units between 139 and 185 square meters, he said.
But Gitlin pointed out that inflation has not eased to comfortable levels yet and a recession seems imminent, so "there is an elevated risk of tenant failure."
He sees
"There has been some fallout already from the store counts we have and I expect going into 2023 there will probably be some more," said Gitlin.
He chalked up any losses
He also added that the company is protecting itself from the volatility by charging seeking significant security deposits from pot retailers, dealing mostly with the bigger and more stable brands and not putting any capital into their stores.
Aside from retail properties,
It has increasing optimism about that part of its portfolio after the
The province's plan includes reducing developer charges, allowing more units on one residential lot, and pursuing rent-to-own programs.
Gitlin called it "a huge step in the right direction" because there is a supply crisis in markets in
"It has been a frustrating process for
"I can only imagine how difficult it is for groups that are less sophisticated and less well-capitalized than
On Thursday,
Its property net operating income grew by 5.1 per cent, driven by increases in occupancy, rent growth and increases, and a lower pandemic-related provision.
Revenue totalled
Funds from operations totalled
This report by The Canadian Press was first published
Companies in this story: (TSX:REI-UN, TSX:DOL)
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