Demand for retail space remains strong in Metro Vancouver, but the pipeline of new inventory could be squeezed by slower residential construction, says a new report.

Anchor tenants, apparel and quick-service restaurants are driving demand for retail space throughout the region, said a Thursday report by commercial real estate firm CBRE Ltd.

Net asking rental rates are expected to remain flat over the next six months in all formats and key urban areas, said the Aug. 21 report.

But there are clouds on the horizon.

“Lagging population growth coupled with a slower economy is directly impacting the mixed-use development pipeline, from which the retail market is reliant upon for new inventory,” the report said about Metro Vancouver.

New retail space needs to accompany growing density in th

See Full Page